photo: Boeing
Avia Solutions Group, the world’s largest ACMI (aircraft, crew, maintenance and insurance) provider, has placed a firm order with Boeing for 40 737 MAX 8 aircraft, with options for 40 more. This is the first order for the 737 MAX since the end of the 7 week IAM strike.
Avia Solutions has 11 different airline operating certificates, with 4 more in process, and a combined global fleet of 220 aircraft. It operates airlines on six continents, carrying 35 million passengers annually. As a contract operator, it typically brands its aircraft with the livery of the airline using ACMI services.
With strong seasonality, airlines typically find vastly different demand patterns between peak and off-peak seasons, and use ACMI services provide a boost to capacity for peak periods. ASG operates across multi-continents providing utilization of aircraft year-round, moving from peak season to peak season. Capitalizing on these opportunities, ASG is looking to grow its fleet to 700 aircraft in 2030, according to its Chairman Gediminas Zimelis.
“This order marks a milestone in our growth strategy” said Zimelis.“With our airlines carrying more than 35 million passengers yearly, these new aircraft will help us meet growing seasonal demands.”
Brad McMullen, Boeing’s senior vice president of Commercial Sales and Marketing, said,“We’re proud to support Avia Solutions Group in meeting dynamic industry demands. The 737-8 aligns perfectly with their customers’ goals for fuel efficiency and enhanced passenger experience. “This order represents not just a business transaction but a vote of confidence in Boeing’s recovery and production capabilities.” First deliveries from this order are expected in 2030.
The Bottom Line
With a goal of 700 aircraft by 2030, ASG is likely to be placing additional orders, as its current fleet of 220 plus the 80 aircraft in the transaction still leaves a gap of 400 aircraft. Given the full order books at the OEMs, this may become a difficult task without the support of leasing companies and the used aircraft market.
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