Monday, May 20, 2024
Avia Solutions Group continues increasing its ACMI market share

Avia Solutions Group continues increasing its ACMI market share

To meet the growing ACMI demand of more educated airlines after the Covid-19 pandemic, KlasJet, an EU-based private air charter company is joining its parent group Avia Solutions Group companies and expanding its service portfolio by adding passenger ACMI to its services list.

In 2021, the ACMI (Aircraft, Crew, Maintenance and Insurance) market size was valued at $4.2bn and is projected to reach $8.8bn by 2030, growing at a CAGR of 8.49% from 2022 to 2030. The ACMI global market is driven by seasonality and different demand peaks per calendar year.

Avia Solutions Group, with its services, operations, and presence, covers all continents and for many years has been developing its relationships with airlines, ACMI operators, MRO and training services providers. This August, the group AOC jointly has 140 aircraft in service, by SmartLynx Airlines, Avion Express, Bluebird Nordic, and Magma Aviation.

Read more: AviaAM Leasing delivers third 737-800 Boeing Converted Freighter to lessee

Several large legacy carriers in their updated strategic plans indicated that one of the tools to increase efficiency is to use third parties ACMI services to meet the seasonal demand, which allows to reduce capacity during non-peak seasons. Companies and consultants state that 1 aircraft, used as ACMI by a carrier, can generate from $1 million to $3 million per season, depending on the region, business model of airlines, and yields.

“After covid, airlines’ creditors, shareholders, governments are seeking more efficiency from the operators. Historically airlines generated an average of 1.57% profit per year over the last 19 years. So, there aren’t many opportunities to increase efficiency, except contracting ACMI for peak season. From educated customers, we see a huge demand for aircraft leasing with the crew, maintenance, and insurance (ACMI) included. Avia Solutions Group is the largest capacity sharer in the world, and we want to be part of ongoing growth,” Rita Domkute, CEO of KlasJet, said.

Read more: How Sub-Saharan airlines would benefit from using the ACMI services

According to her, the airline is planning to expand its current fleet by adding more next-generation Boeing 737. “We plan to add 5 economy class Boeing aircraft with a capacity for 189 passengers to our fleet this year, and by the end of 2023, we should have 15 more aircraft for ACMI operations. This passenger aircraft type of aircraft wasn’t in our group ACMI companies fleet list till now. I trust that our VIP charter service experience together with the ACMI industry expertise of Avia Solutions Group companies will allow us to smoothly enter the ACMI market and offer high-quality services from the first moment,” KlasJet’s CEO explained. The company plans to start ACMI operations starting in autumn.

Picture of Edward Hardy

Edward Hardy

Having become a journalist after university, Edward Hardy has been a reporter and editor at some of the world's leading publications and news sites. In 2022, he became Air Cargo Week's Editor. Got news to share? Contact me on Edward.Hardy@AirCargoWeek.com

Newsletter

Stay informed. Stay ahead. To get the latest air cargo news and industry trends delivered directly to your inbox, sign up now!

related articles

Historic purchase: Saudia Group places the largest aircraft order in Saudi aviation history

AGI Global Logistics appoint Nicky Woodman as Manchester Co-Director

SAUDIA CARGO ACHIEVES RECORD-BREAKING SUCCESS IN THE FIRST QUARTER OF 2024