The Biggest Airline Group You May Not Have Heard Of

While some airline groups, like IAG, AirAsia, Qantas and Singapore Airlines, roll off the tongue, others have a much lower profile. Avia Solutions group is one of those quiet achievers who go about their business while making money, mainly from aircraft charters.

Adding capacity with ACMI charters

Avia Solutions Group (Avia) is the leading global ACMI (aircraft, crew, maintenance and insurance) provider with a fleet of 173 aircraft. In addition to its charter operations, Avia has businesses involved in maintenance repair and overhaul, pilot and crew training, ground handling and other aviation solutions.

Photo: BriYYZ via Wikimedia Commons

Perhaps more recognizably, it is the parent company of airlines, including SmartLynx Airlines, Avion Express, BBN Airlines, KlasJet and Magma Aviation. All companies provide a full range of charter services, including long-term, ad-hoc wet and damp leasing and air charter operations. The Avia Solutions Group carries around six million passengers annually and operates in Europe, Asia, Africa and the Americas.

Yesterday, Avia Solutions Group announced its 2022 financial results. The group recorded revenue of €1.9 billion ($2.07 billion), EBITDA of €288 million ($314 million) and made an adjusted profit of €85 million ($93 million). Avia CEO Jonas Janukenas said last year’s results were predominantly determined by its decision to add more aircraft to the fleet.

“We were one of the first in the market to begin actively expanding our passenger aircraft fleet. We can see that this strategy paid off and allowed us to strengthen our leading positions in the market. Throughout the year we added 78 aircraft to the group’s fleet.”

At the end of 2022, the group’s fleet had grown to 173 aircraft, including 136 passenger and 37 cargo aircraft. The fleet is comprised of Airbus A320-family, A330 and Boeing 737 airliners. Around a third of the fleet is operated by two airlines, Avion Express Malta and SmartLynx Malta.

According to Planespotters.net, SmartLynx Malta has 26 aircraft, including seven Airbus A320-200s, eight A321-200s, and six A330-300s. The data also shows it has a modern fleet of five Boeing 737 MAX 8s. Avion Express Malta has an all-Airbus fleet of 30 A320-200s and three A321-200s.

Photo: Anna Zvereva via Wikimedia Commons

At home in Europe

Now based in Dublin, Ireland, Avia has its roots firmly planted in Europe, from which it earns more than 80% of its annual revenue. Another 10% comes from operations in Asia and 5% from North America, although Avia sees excellent potential in the US, where it has four offices.

The war in Ukraine has cut into revenues and profits following the decision to withdraw from the Russian market, a decision taken on the second day of the war. Janukenas said that the complete withdrawal from the Russian market cost the group €14 million ($15 million) in direct losses, while it lost another €55 million ($60 million) by significantly downsizing its activities in China. He added:

 

“Even before the beginning of the war, both Russian and Chinese markets were insignificant in terms of activity; revenue in Russia was no more than 3%, in China 0.5%, so there were no plans for further activity. For several years now, our focus has remained on Western Europe, the USA, and North and South American markets, where we see the greatest potential for the group’s development.”

Have you ever flown on one of the group’s airlines? Let us know in the comments.

Source: Planespotters.net