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August 29, 2022

Largest capacity provider in the world Avia Solutions Group continues increasing its ACMI market share

Largest capacity provider in the world Avia Solutions Group continues increasing its ACMI market shareIn 2021, the aircraft ACMI 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. For example, pre-covid in 2019, out of 1.15 billion passengers carried by airlines, 650 million were carried in June – October (summer), which means 31 % more passengers when compared to the winter season. And the demand in South America, Asia Pacific, and Africa regions is opposite to Europe.

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.

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.

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 M to $3 M 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,” says Rita Domkute, CEO of KlasJet.

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,” explains KlasJet’s CEO. The company plans to start ACMI operations starting in autumn.

Even though KlasJet is embarking on this new ACMI journey, the company will continue providing exceptional private charter services to its loyal client base. The company currently operates VIP 7 aircraft and plans to expand its luxury fleet to 10 aircraft in 2023.