Airlines answer seasonal air travel demand with ACMI: Avion Express

As air journey demand turns into extra seasonal, pushed by a surge in leisure journey peaking in summer time and dropping in winter, airways face the problem of adapting to those fluctuations.

Historically, airways ramp up their schedules and sources for the busy summer time months, resulting in overcapacity and underutilized property throughout the quieter winter season. This seasonal imbalance can pressure funds, as sustaining profitability is difficult when plane and crews are underutilized in winter.

Aviation Discussion board: Interview with Avion Specific CEO

To handle these seasonal peaks and troughs extra successfully, airways are more and more turning to ACMI (plane, crew, upkeep, and insurance coverage) leasing, often known as moist leasing. This technique permits airways to lease extra plane, from ACMI suppliers similar to Avion Specific, together with the required crew and upkeep companies, throughout peak demand intervals, and return them throughout off-peak instances.

Avion Specific is a Europe-based, narrow-body ACMI and constitution airline, working a fleet of over 50 Airbus A320 household plane. With twenty years within the business, the airline boasts being one of many largest passenger ACMI narrow-body service globally by variety of plane, variety of flights and manufacturing hours often known as block hours.

“The primary purpose why our enterprise exists is seasonality, as a result of there’s completely different seasonality between completely different continents,” shares Avion Specific CEO, Darius Kajokas in an Aviation Discussion board interview.

ACMI leasing gives a major benefit in sustaining excessive plane utilization charges and operational effectivity. By utilizing moist leases, airways can keep away from the monetary losses related to winter overcapacity and underutilized property.

This method additionally supplies a buffer towards sudden demand spikes or delays in new plane deliveries, providing a dependable and scalable answer to capability administration.

“We are a ‘B2B’ company, we are never in the tickets selling business, [rather] we provide our services to the airlines,” shares Kajokas.

Today Avion Express, has a team of more than 1,700 professionals based across more than 15 bases during the summer season of 2024, providing services to its ACMI customers around the world. The airline operates two AOCs established in Lithuania and Malta, and is in the process of establishing a new AOC in Latin America.

Avion Specific can also be a subsidiary of Avia Solutions Group, identified to be the world’s largest ACMI capability supplier.

Kajokas highlights the airline’s funding to reach new customers outside its home market Europe, particularly in South America, the place ACMI leasing is gaining visibility as a viable enterprise observe for airways in that area.

“We’re reaching a tipping level within the Americas by way of ACMI,” shares Kajokas who additionally highlights the growing adoption of ACMI in markets that had been as soon as closed to ACMI as a enterprise mannequin, together with international locations similar to Mexico, Brazil and Argentina.

In an period of accelerating seasonality, ACMI leasing supplies a sensible various to increasing owned fleets. It permits airways to adapt to fluctuating demand with out the monetary pressure of sustaining surplus plane year-round. By incorporating ACMI leasing into their technique, airways can optimize their operations, keep profitability, and reply extra flexibly to altering market circumstances.

Watch the full interview.

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