(Information sent by the signatory company)
– Gediminas Ziemelis, President of Avia Solutions Group: 3 key trends in ACMI leasing ahead of 2024
DUBLIN, March 8, 2024 /PRNewswire/ — As we head into 2024, Gediminas Ziemelis, President of Avia Solutions Group and leading figure in ACMI leasing, outlines three key trends shaping the aviation sector, especially in the scope of the ACMI lease. In a context of resurgence in demand for air transport, with forecasts close to pre-pandemic levels, the aviation sector is poised for growth. However, this optimism is tempered by persistent structural challenges, such as labor shortages, financial constraints and supply chain disruptions, which ACMI leasing can strategically address.
Trend 1: Wet leasing as a strategic response to increased demand
The end of historically low borrowing costs means a difficult time for airlines, especially those still dealing with the financial fallout from the COVID-19 pandemic. With interest rates stabilizing, although still high, traditional fleet expansion through loans becomes a risky venture amid uncertain long-term demand. ACMI leasing emerges as a vital solution, offering flexibility and financial viability. It allows airlines to expand their operations to meet current demand without the burden of long-term debt, ensuring adaptability regardless of future market fluctuations.
Trend 2: Addressing labor shortages through ACMI
The aviation sector is facing a serious human resources crisis, exacerbated by the impact of the pandemic on pilot training programs and high attrition rates. With an estimated need to train 264,000 more pilots by 2029 to replace the retiring workforce, airlines are under immense pressure. ACMI leasing offers breathing room by tapping into an international pool of aviation professionals, thereby mitigating staffing challenges and allowing airlines to maintain operational efficiency and growth.
Trend 3: Overcoming seasonality and supply problems
ACMI’s historic strength in managing seasonality is now more relevant than ever, with airlines leveraging wet leasing to adjust capacity in response to fluctuating demand. Additionally, as the sector faces supply disruptions such as production delays and parts shortages, ACMI provides a crucial interim solution, ensuring service continuity. This flexibility is also being recognized by governments and tourism-dependent regions seeking to rejuvenate travel and tourism post-pandemic by rapidly expanding routes and adjusting capacity.
Conclusion: ACMI Strategic Imperative for Airline Resilience
Ziemelis advocates for a balanced approach to fleet management, recommending that between 6% and 15% of an airline’s fleet be made up of ACMI-leased aircraft. This strategy offers the necessary operational flexibility while mitigating financial risk, positioning airlines to capitalize on current opportunities and navigate future uncertainties. With a fleet ready for both short- and long-term leasing, Avia Solutions Group is prepared to help airlines overcome current challenges, maximize resurgent demand and ensure a prosperous future in the changing aviation landscape.
Photo – https://mma.prnewswire.com/media/2358229…Logo – https://mma.prnewswire.com/media/1039700…
View original content: https://www.prnewswire.com/news-releases/gediminas-ziemelis-presidente-de-avia-solutions-group-3-tendencias-clave-en-el-arrendamiento-de-acmi-302084226.html
