President of Avia Solutions Group, Gediminas Ziemelis: 3 Key Trends in ACMI Leasing to 2024

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DUBLIN, March 8, 2024 /PRNewswire/ — As we approach the year 2024, Gediminas Ziemelis, President of Avia Solutions Group and a leading figure in ACMI leasing, outlines three key trends shaping the aviation industry, in the realm of ACMI leasing. Amid a resurgence in view of the demand for air travel, with projections close to pre-pandemic levels, the aviation sector is poised for growth. However, this optimism is tempered by ongoing structural challenges, which add up to a shortage of hard work, currency constraints, and supply chain disruptions, all of which ACMI Leasing can address strategically.

Trend 1: Wet charter as a strategic reaction to increased demand

The end of classically low borrowing prices means a challenging time for airlines, especially those still struggling with the monetary fallout from the COVID-19 pandemic. With interest rates stabilizing but still high, classic fleet expansion through debt is becoming a risky venture against a backdrop of dubious long-term demand. ACMI leasing appears to be a solution, providing flexibility and monetary viability. It allows airlines to adapt their operations to meet existing needs without the burden of long-term debt, ensuring their adaptability regardless of long-term market fluctuations.

Trend 2: Addressing ACMI Labor Shortages

The aviation industry is facing a severe human resources crisis, exacerbated by the pandemic’s effect on pilot training systems and high attrition rates. With an estimated need to hire an additional 264,000 pilots through 2029 to fill the retiring workforce, airlines are under immense pressure. ACMI Leasing provides respite by drawing on a foreign pool of aviation professionals, alleviating staffing issues and allowing airlines to maintain their operational power and growth.

Trend 3: Overcoming Seasonality and Problems

ACMI’s former strength in seasonality management is now more applicable than ever, with airlines leveraging wet leasing to adjust capacity in reaction to fluctuations in demand. In addition, as the industry faces supply-side shocks such as production delays and portion shortages, ACMI is a very important stopgap solution for service continuity. This flexibility is also identified through tourism-dependent governments and regions seeking to rejuvenate post-pandemic tourism through immediate expansion of itineraries and capacity adjustment.

Conclusion: ACMI’s Strategic Imperative for Airline Resilience

Ziemelis advocates for a balanced strategy for fleet management, recommending that between 6% and 15% of an airline’s fleet be made up of aircraft leased by ACMI. This strategy provides the necessary operational flexibility while mitigating currency risk, positioning airlines to capitalize on existing opportunities and address long-term uncertainties. With a fleet prepared for short- and long-term rentals, Avia Solutions Group is in a position to help airlines overcome existing challenges, maximize resurgence in demand, and ensure an incredibly rich future ahead. Evolving aviation landscape.

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SOURCE Avia Solutions Group

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