Avia Solutions Group Streamlines Europe and Expands Globally in Aviation

Avia Solutions Group’s New Playbook: Streamlining Europe, Expanding Globally

In the highly competitive and cyclical world of Airlines, strategic agility is paramount. Avia Solutions Group, the world’s largest provider of ACMI (Aircraft, Crew, Maintenance, and Insurance) services, has announced a significant strategic shift designed to enhance its operational efficiency and solidify its market leadership. The Dublin-based giant is set to streamline its extensive European airline operations, consolidating multiple Air Operator’s Certificates (AOCs) to create a more focused and robust structure. This move is not merely an internal reorganization; it represents a sophisticated strategy to master the seasonal demands that define the aviation industry.

This consolidation in its core European market is one half of a larger, more ambitious global strategy. While tightening its operations at home, Avia Solutions Group is simultaneously executing a major expansion into counter-cyclical markets, particularly in the Asia-Pacific and Latin-America regions. By balancing the summer peak season in Europe with the corresponding high-demand season in the Southern Hemisphere, the group aims to create a more resilient, year-round operational model. This dual approach, optimizing at home while aggressively growing abroad, positions the company to better navigate market fluctuations and capitalize on global opportunities.

The European Consolidation Strategy

The core of Avia Solutions Group’s new European strategy is a move towards simplification and efficiency. The group has historically managed a number of different AOCs across the continent. While this structure allowed for flexibility, it also created operational complexities. The new plan involves consolidating these separate entities to create a more streamlined and manageable framework. This decision is rooted in a clear operational philosophy: the group has identified that the optimal fleet size for a single AOC is approximately 27-30 Commercial-Aircraft. By restructuring its European operations around this principle, the company aims to maximize efficiency and reduce administrative overhead.

Concrete Steps and Structural Changes

The strategy is already being put into action with several decisive moves. Avia Solutions Group has completed the sale of SmartLynx Latvia to its management team and a Dutch fund, marking a clear step in its divestment from smaller, separate AOCs. Furthermore, the group has outlined plans to merge its SmartLynx Estonia and SmartLynx Malta AOCs. Following the merger, this consolidated entity will be rebranded, signaling a fresh start and a unified identity for its streamlined European passenger services. These actions are not just about reducing the number of brands on paper; they are about creating a more cohesive operational unit that can better serve the largest passenger market in the world, which is estimated to account for 1.3 billion of the 5.2 billion global travellers in 2025.

This internal restructuring is supported by the group’s strategic relocation of its controlling headquarters to Dublin, Ireland, in March 2023. This move made Avia Solutions Group the second-largest Irish-registered aviation business, placing it at the heart of a global aviation hub. The proximity to a vast network of leasing companies, financial institutions, and other aviation leaders provides a significant competitive advantage.

“Ireland is known as the hub of aviation. A large number of aviation companies are located here, hence, being closer to the aviation community we will be able to implement the group’s development plans faster and maintain market leadership.” – Jonas Janukenas, CEO of Avia Solutions Group

Fleet Management and Market Response

As part of its strategic realignment, Avia Solutions Group has also optimized its fleet. The total number of aircraft operated by the group was adjusted from 209 in the first quarter of 2025 to 187. This reduction was not a sign of contraction but a calculated decision, primarily driven by the optimization of its narrow-body cargo fleet in response to a recent slump in the global cargo market. This adaptive approach to fleet management demonstrates a commitment to aligning resources with real-time market conditions, ensuring that the group’s assets are deployed where they can be most effective and profitable. Despite these adjustments, the group’s revenue continued to grow, increasing by 5% year-on-year to €534 million in the first quarter of 2025.

A Pivot to Counter-Cyclical Global Markets

The consolidation in Europe is only one side of the coin. The other, equally critical component of Avia Solutions Group’s strategy is a deliberate and aggressive expansion into markets with opposing seasonality. The aviation industry has long grappled with the challenge of seasonal demand, where aircraft and crews are in high demand during the European summer but underutilized during the winter. The group’s solution is to follow the summer season around the globe.

Targeting Asia-Pacific and Latin America

The company is actively shifting its focus to capitalize on the peak travel seasons in the Southern Hemisphere. This counter-cyclical expansion is already showing significant results. The group’s share of activities in the Asia-Pacific region surged from 22% in the first quarter of 2024 to 38% in the same period of 2025. This remarkable growth underscores the success of its pivot towards these new markets. To support this expansion, the group is in the process of establishing new AOCs in key growth regions. By the end of 2025, it plans to have AOCs operational or in development in Australia, Brazil, Indonesia, Malaysia, and Thailand. An Indonesian AOC has already been successfully secured, marking a major milestone in this global push.

“During summer, when demand is at its peak, ACMI is a crucial tool for airlines looking to boost their profitability… In winter, demand for extra capacity shifts from Europe to the Southern hemisphere as their summer season begins. By consolidating our European AOCs and expanding into counter-cyclical markets in Asia Pacific and Latin America, we aim to optimize year-round operations.” – Jonas Janukenas, CEO of Avia Solutions Group

To further bolster its global operations, Avia Solutions Group opened its first Global Services Centre in Manila, Philippines, in January 2025. This center will provide crucial back-office and administrative support for its expanding network, ensuring that the infrastructure is in place to manage its growing international footprint. The group’s existing European AOCs also provide a flexible platform to offer ACMI services in a host of other countries, including Canada, Mexico, India, and for international routes in the USA, further extending its global reach.

Conclusion: Building a Resilient Future

Avia Solutions Group’s latest strategic initiative is a masterclass in adaptive leadership within the global aviation sector. By simultaneously streamlining its core European operations for maximum efficiency and aggressively expanding into counter-seasonal markets, the company is building a more resilient and financially stable business model. This dual strategy directly addresses the age-old problem of seasonal demand, transforming it from a liability into a strategic advantage. The focus on an optimal AOC structure in Europe will reduce complexity and cost, while the push into Asia-Pacific and Latin America ensures that its fleet remains productive year-round.

This forward-thinking approach not only solidifies Avia Solutions Group’s position as the world’s leading ACMI provider but also sets a new standard for operational excellence in the industry. As the company continues to establish its presence across six continents, supported by a team of over 14,000 professionals, it is well-positioned to navigate future market challenges and capitalize on emerging opportunities. The result is a global aviation powerhouse that is leaner, more agile, and strategically diversified for long-term, sustainable growth.

FAQ

Question: What is ACMI?
Answer: ACMI stands for Aircraft, Crew, Maintenance, and Insurance. It is a leasing arrangement in which one airline (the lessor) provides an aircraft, crew, maintenance, and insurance to another airline (the lessee), which then pays by the hours operated.

Question: Why is Avia Solutions Group consolidating its European operations?
Answer: The group is streamlining its European AOCs to enhance operational efficiency, reduce complexity, and structure its operations around an optimal fleet size of 27-30 aircraft per AOC. This allows for better management of the highly seasonal European market.

Question: Where is Avia Solutions Group expanding its operations?
Answer: The company is expanding into counter-cyclical markets, primarily in the Asia-Pacific and Latin American regions. It is establishing or has already secured AOCs in countries such as Indonesia, Australia, Brazil, Malaysia, and Thailand to capitalize on their peak travel seasons, which are opposite to Europe’s.

Sources: Aviation24.be