Market Intelligence: North and Central Asia

World’s Largest ACMI Provider and Aviation Conglomerate Avia Solutions Group Records 26% Revenue Growth in Q1 2024

Avia Solutions Group, the world’s largest ACMI provider (Aircraft, Crew, Maintenance, and Insurance) services and owner of global pilot training group BAA Training, announced its financial performance results for Q1 2024. The Group’s revenue grew by 26%, reaching €508.8 million. The growth was primarily driven by a significant increase in passenger flight volumes – the Group’s revenue from passenger aircraft ACMI services grew 2.3-fold, reaching €216 million.

The Group’s EBITDA stood at €11.9 million, while its net losses comprised €97.5 million, meeting the overall expectations for Q1. These results were mostly due to investment into fleet capacity and crew, in preparation for a record-breaking summer season, as well as to strategic expansion in new markets.

During the first quarter of this year, the Group expanded its fleet with 13 new aircraft, bringing the total to 171 passenger and 42 cargo aircraft. Even though, in the aviation industry, the first quarter of any given year is typically considered not as profitable, the Group’s entire fleet, which today encompasses 213 aircraft, has already been leased to major European and international airlines, including Lufthansa Group, Turkish Airlines, Wizz Air, TUI, IndiGo, among others.

“We are now fully prepared for the summer season, which we expect to break all previous records. The Group’s aviation services infrastructure and global scale give us a significant competitive advantage and the status of industry leaders,” said Jonas Janukenas, CEO of Avia Solutions Group.

Avia Solutions Group is consistently implementing its expansion strategy in Asia, Asia-Pacific, and South America, which enables it to efficiently manage seasonality in Europe by shifting aircraft from one region to another. Early in Q1 2024, the Group acquired the Australian airline Skytrans, and is planning to establish ACMI airlines in Brazil, the Philippines, Thailand, and Malaysia later this year.

Based in Ireland, Avia Solutions Group operates in 68 countries around the world, and has offices in Lithuania, New York, Dubai, Dublin, and other cities around the globe. The Group consists of 100+ companies providing a wide range of aviation services like aircraft maintenance and repair (MRO), pilot and crew training, ground handling, and more. The Group’s team encompasses 12,000 highly qualified aviation professionals.

Source: Avia Solutions Group

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L3Harris Secures Contract from Azerbaijan Airlines for Boeing 787-9 Full Flight Simulator

L3Harris is pleased to announce that it has secured a contract with Azerbaijan Airlines (AZAL) to supply the national carrier with a Boeing 787-9 Full Flight Simulator (FFS). Azerbaijan Airlines currently operates two B787s, with an additional eight on order. The new FFS is scheduled to enter service in the third quarter of 2025 in Baku, at the Azerbaijan Airlines National Aviation Academy Pilot Training Centre. This FFS will be the first B787 simulator in the Caspian Sea Region and the first of its kind for Azerbaijan Airlines.

By acquiring this state-of-the-art training device, Azerbaijan Airlines will now have the capability to conduct local training and have full control over their training events. The airline will be able to fulfil all its Boeing 787 simulator training requirements and even offer excess capacity to airlines in the region and worldwide. The Boeing 787 FFS will hold both EASA and local CAA Level D regulatory approvals, ensuring compliance with safety standards.

To support the new FFS, L3Harris will provide 24/7 aftermarket support for spares, repairs, and future updates. This comprehensive support will ensure the device performs optimally throughout its operational lifespan.

This latest addition will bring the total number of L3Harris simulators at the Azerbaijan Airlines National Aviation Academy Pilot Training Centre to four. L3Harris has been a trusted partner of Azerbaijan Airlines and previously installed an A320 Flight Procedures Trainer (FPT) at the National Aviation Academy in March.

Alan Crawford, President of L3Harris Commercial Aviation Solutions said: “Delivering the latest Boeing 787-9 Full Flight Simulator to Azerbaijan Airlines represents a significant milestone in our partnership. This state-of-the-art training device will elevate pilot training capabilities in the Caspian Sea region, empowering Azerbaijan Airlines with unparalleled control over their training events. We are proud to support Azerbaijan Airlines as they expand and evolve their operations.”

Ben Swann, VP and General Manager for Training Systems at L3Harris added: “Introducing the Boeing 787-9 Full Flight Simulator to Azerbaijan Airlines is a significant milestone for us, underscoring our commitment to safety and innovation in the Caspian Sea region and beyond.”

L3Harris looks forward to continuing its longstanding relationship with Azerbaijan Airlines as the airline continues to expand and evolve.

Source: L3Harris

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World’s Largest ACMI Provider and Aviation Conglomerate Avia Solutions Group Records 2023 EBITDA of EUR 392 Million

Avia Solutions Group, the world’s largest ACMI provider (Aircraft, Crew, Maintenance, and Insurance) services and owner of global pilot training group BAA Training, announced its audited financial results for 2023, reporting a net profit increase of 5.5 times to EUR 68.2 million, adjusted EBITDA up by 36% to EUR 392 million, and revenues rising by 22% to EUR 2.3 billion. The company generated the most revenue in Europe (67%), Asia (20%), and North and South America (6%).

Last year, the Group continued to invest in its fleet, expanding it by 27 aircraft to a total of 200, including 159 passenger and 41 cargo aircraft by the end of the year.

In 2023, the Group’s revenues from passenger aircraft ACMI services increased by 53%, reaching EUR 950 million. According to Jonas Janukenas, CEO of Avia Solutions Group, the significant increase in volumes indicates that many of the world’s leading airlines view ACMI services as an integral part of their operations, helping to manage their fleets more efficiently. The situation in the passenger aircraft market ensures that the Group will maintain high growth rates in the future.

Last year, Avia Solutions Group continued its expansion in the Asia-Pacific region, starting operations with BBN Airlines Indonesia and acquiring the Australian airline Skytrans at the beginning of 2024. By the end of 2024, the company plans to establish four more ACMI airlines in Brazil, the Philippines, Thailand, and Malaysia.

The company is preparing to further expand its aircraft fleet and maintain leading positions in the ACMI segment, where it sees a significant market need. The company’s infrastructure in Asia and the Pacific region, as well as in the Americas, will allow it to effectively manage the challenges of seasonality in aviation by shifting aircraft from one region to another.

“The Group will utilise aircraft in Europe during the summer peak season, and during the winter, the planes will be relocated to regions with opposite seasonality. This will allow us to maximise the capabilities of our aircraft fleet, and our clients, the world’s leading airlines, will receive aircraft during the peak seasonal periods,” states J. Janukenas.

The American market is also a priority for the company. Recently, the company signed a cooperation agreement with Impact Investments LLC, whose executive chairman is the former U.S. Secretary of State Mike Pompeo. The company will provide strategic development consulting to the Group.

Avia Solutions Group, based in Ireland, has offices in Ireland, the USA, the UAE, Lithuania, Australia, the Asia-Pacific region, and South Africa. The Group owns globally operating airline companies such as SmartLynx Airlines, Avion Express, AirExplore, KlasJet, and Magma Aviation. It also manages the aircraft maintenance and repair services (MRO) company FL Technics, which has aircraft technical maintenance and repair hangars in Indonesia, the United Kingdom, and Lithuania, along with 100 operational maintenance stations in various countries. Among the Group’s companies is the largest independent pilot training center, BAA Training, with pilot schools in Spain, France, Lithuania, and Vietnam.

The Avia Solutions Group team comprises over 11,700 highly qualified aviation professionals worldwide.

Source: Avia Solutions Group
Photo Credit: Avia Solutions Group

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Airbus Announces Commercial Aircraft Orders and Deliveries for the Month of April 2024

In April 2024, European aircraft manufacturer Airbus:

  • Delivered 61 aircraft to 33 customers
    • 3 A220-300
    • 22 A320neo
    • 29 A321neo
    • 1 A330-900
    • 6 A350-900
  • Secured 57 orders
    • 3 A320neo
    • 53 A321neo
    • 1 A350-900
  • Year to date Airbus has delivered 203 aircraft to 52 customers.

AFM Team Note – kindly contact us for a detailed excel breakdown of orders and deliveries by airline.

See last month’s order here.

Source: Airbus
Photo Credit: Airbus

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Training Aircraft Manufacturer Cirrus Aircraft Appoints Director International Sales Development

United States headquartered aircraft manufacturer Cirrus Aircraft, which manufacturers the popular SR22 and TRAC20 aircraft used by numerous pilot training organisations such as Emirates Flight Training Academy, United Aviate Academy, European Flight Academy and many more, has appointed Edo Santema as Director International Sales Development. To learn more about Cirrus Aircraft or connect with Mr Santema – visit his LinkedIn profile.

Source: Edo Santema (Cirrus Aircraft)
Photo Credit: Cirrus Aircraft

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Latitude Aviation English Services Chosen by Central Asian Airline to Deliver Advanced Training Course in 2024

Aviation english language training and assessment provider Latitude Aviation English Services (Latitude) has announced that it has been chosen by Uzbekistan Airways to deliver advanced training for the airline’s language teaching and testing team. A bespoke 70-hour course will be delivered in summer 2024 as a blend of e-learning and instructor-led training in partnership with Norwich Institute for Language Education in the UK.

“We’re very much looking forward to taking a deep dive into aviation language teaching pedagogy and instructional and test task design, all in the context of radiotelephony communication in accordance with the ICAO LPRs,” said Latitude.

Source: Latitude Aviation English Services
Photo Credit: Latitude Aviation English Services

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Global Pilot Training Solution Provider L3Harris Commercial Aviation Visits Central Asia Airline Customer

David Moden, Sales Director at L3Harris Commercial Aviation, visited the simulator training facilities of one of their airline customers, Air Astana. Air Astana’s A320 EASA certified Reality Seven Full Flight Simulator installed at its flight training centre was installed in September 2023 – being the first one to enter service with Air Astana and the first ever installation in Kazakhstan. The airline’s new Flight Training Center (Simulator Training Center) at Astana Airport was opened in July 2023 and supports the operations of Air Astana and FlyArystan’s Airbus A320 fleet.

“It is always a pleasure to visit our airline customers’ simulator training facilities and meet the incredible teams that keep these sophisticated devices operational. Thank you for your warm welcome to Astana and, continued congratulations Air Astana on a world class A320 flight training organization.” shared David Moden.

Source: David Moden (L3Harris Commercial Aviation)
Photo Credit: David Moden

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