Airlines Strategy
Avia Solutions Group Streamlines Europe and Expands Globally in Aviation
Avia Solutions Group consolidates European AOCs and expands in Asia-Pacific and Latin America to optimize year-round aviation operations.
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 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.
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
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.
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.
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.
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.
Question: What is ACMI? Question: Why is Avia Solutions Group consolidating its European operations? Question: Where is Avia Solutions Group expanding its operations? Sources: Aviation24.be
Avia Solutions Group’s New Playbook: Streamlining Europe, Expanding Globally
The European Consolidation Strategy
Concrete Steps and Structural Changes
Fleet Management and Market Response
A Pivot to Counter-Cyclical Global Markets
Targeting Asia-Pacific and Latin America
Conclusion: Building a Resilient Future
FAQ
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.
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.
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.
Photo Credit: Avia Solutions Group
Airlines Strategy
Singapore Airlines and Malaysia Airlines Formalize Joint Business Partnership
Singapore Airlines and Malaysia Airlines formalize a strategic partnership to coordinate flights, share revenue, and expand codeshares on the Singapore-Malaysia corridor.
This article is based on an official press release from Singapore Airlines.
On January 29, 2026, Singapore Airlines (SIA) and Malaysia Airlines Berhad (MAB) officially formalized a strategic Joint Business Partnerships (JBP). The agreement marks a significant milestone in Southeast Asian Airlines, following the receipt of final Regulations approvals from the Civil Aviation Authority of Malaysia (CAAM) earlier this month and the Competition and Consumer Commission of Singapore (CCCS) in July 2025.
According to the joint announcement, the partnership allows the two national carriers to coordinate flight schedules, share revenue, and offer joint fare products. This move is designed to deepen cooperation on the high-traffic Singapore-Malaysia air corridor and expand connectivity for passengers traveling between the two nations and beyond.
The formalized agreement enables SIA and MAB to operate more closely than ever before. Key components of the partnership include revenue sharing on flights between Singapore and Malaysia and the alignment of flight schedules to provide customers with more convenient departure times. The airlines also plan to introduce joint corporate travel programs to better serve business clients operating in both markets.
A central feature of the JBP is the expansion of codeshare arrangements. Under the new terms, Singapore Airlines will expand its codeshare operations to include 16 domestic destinations within Malaysia, such as Kota Kinabalu, Kuching, Penang, and Langkawi. Conversely, Malaysia Airlines will progressively codeshare on SIA flights to key international markets, including Europe and South Africa.
Goh Choon Phong, Chief Executive Officer of Singapore Airlines, emphasized the mutual benefits of the agreement in a statement:
“Our win-win collaboration strengthens both carriers’ operations, while delivering enhanced value to customers across our combined networks. This also reinforces the long-standing and deep people-to-people and trade links between Singapore and Malaysia, supporting economic growth and connectivity that will benefit both nations.”
The path to this partnership began in October 2019 but faced delays due to the global pandemic and necessary regulatory scrutiny. The Competition and Consumer Commission of Singapore (CCCS) conducted a thorough review, raising initial concerns regarding competition on the Singapore-Kuala Lumpur (SIN-KUL) route, one of the busiest international air corridors globally.
To secure approval, the airlines committed to maintaining pre-pandemic capacity levels on the route. Additionally, the partnership explicitly excludes the groups’ low-cost subsidiaries, Scoot (SIA Group) and Firefly (Malaysia Aviation Group). This exclusion was a critical revision submitted to regulators to ensure fair competition in the budget travel segment. Datuk Captain Izham Ismail, Group Managing Director of Malaysia Aviation Group, highlighted the strategic importance of the deal:
“This collaboration brings together complementary frequencies and aligned schedules, enabling deeper connectivity between Malaysia and Singapore. Over time, it reinforces MAB’s competitive position by enhancing scale, relevance, and network resilience across key markets.”
Consolidation in a High-Volume Corridor
The formalization of this JBP effectively allows Singapore Airlines and Malaysia Airlines to operate as a single entity regarding scheduling and pricing on the full-service Singapore-Kuala Lumpur route. By coordinating schedules, the carriers can avoid wingtip-to-wingtip flying (flights departing at the exact same time), thereby optimizing fleet utilization and offering a “shuttle-like” frequency for business travelers.
While this strengthens the full-service proposition against low-cost competitors like AirAsia, the regulatory exclusion of Scoot and Firefly is a vital safeguard for consumers. It ensures that price-sensitive travelers retain access to competitive fares driven by the budget sector, while the JBP focuses on premium and connecting traffic.
When does the partnership officially begin? Will this affect frequent flyer programs? Are budget airlines included in this deal?
Singapore Airlines and Malaysia Airlines Formalize Strategic Joint Business Partnership
Scope of the Partnership
Expanded Connectivity and Codeshares
Regulatory Journey and Exclusions
AirPro News Analysis
Frequently Asked Questions
The partnership was formally launched on January 29, 2026, following the final regulatory approval from the Civil Aviation Authority of Malaysia.
Yes. While reciprocal benefits for earning and redeeming miles were enhanced in 2024, the JBP is expected to deepen integration, offering better recognition for elite status holders and improved lounge access across both networks.
No. The low-cost subsidiaries Scoot and Firefly are excluded from this joint business arrangement to comply with regulatory requirements and preserve competition.
Sources
Photo Credit: Montage
Airlines Strategy
Qantas to Exit Jetstar Japan Stake and Rebrand by 2027
Qantas will sell its 33.32% stake in Jetstar Japan to a consortium led by the Development Bank of Japan, ending its Asian LCC venture by mid-2027.
This article summarizes reporting by Reuters.
The Qantas Group has announced it will divest its remaining 33.32% shareholding in Jetstar Japan, selling the stake to a consortium led by the Development Bank of Japan (DBJ). The move, confirmed on February 3, 2026, signals the Australian carrier’s complete departure from the Asian low-cost carrier (LCC) joint venture model.
According to reporting by Reuters, the transaction is expected to conclude by mid-2027, subject to regulatory approvals. While the Airlines will continue operations, it will undergo a comprehensive rebranding, removing the “Jetstar” name from the Japanese domestic market. This decision follows the closure of Qantas’s Singapore-based subsidiary, Jetstar Asia, in July 2025, effectively ending the group’s pan-Asian budget airline strategy.
Under the new agreement, the Development Bank of Japan will enter as a major shareholder, while Japan Airlines (JAL) will retain its controlling 50% stake. Tokyo Century Corporation will also hold its position with a 16.7% share.
Qantas has stated that the financial impact of the sale will be immaterial to its earnings. The primary objective appears to be a strategic realignment rather than an immediate cash injection. The airline’s current flight schedules, routes, and staffing at its Narita Airport base will remain unaffected in the immediate term.
Consumers can expect significant changes to the airline’s visual identity. According to market data, a new brand name is expected to be announced in October 2026, with the full transition away from the Jetstar livery completed by mid-2027. Until then, the carrier will continue to operate under its current name.
The divestment allows Qantas to redirect capital toward its core domestic operations and its ambitious “Project Sunrise” ultra-long-haul international flights. In an official statement regarding the sale, Qantas Group CEO Vanessa Hudson emphasized the shift in focus.
“We’re incredibly proud of the pioneering role Jetstar Japan has played… This transaction allows us to focus our capital on our core Australian operations while leaving the airline in strong local hands.”
Vanessa Hudson, Qantas Group CEO
For Japan Airlines and the DBJ, the move represents a “nationalization” of the carrier’s ownership structure. By transitioning to a Japanese capital-led model, the stakeholders aim to better capture the country’s booming inbound tourism market without the complexities of a cross-border joint venture.
“We will respond flexibly to market changes and maximize synergies with the JAL Group to achieve sustainable growth.”
Mitsuko Tottori, JAL Group CEO
The exit from Jetstar Japan marks the final chapter in Qantas’s retreat from its once-ambitious Asian expansion strategy. For over a decade, the “Jetstar” brand attempted to replicate its Australian success across Asia. However, the closure of Jetstar Asia in Singapore in 2025 demonstrated the difficulties of maintaining margins in a fragmented market saturated by competitors like Scoot and AirAsia.
By selling its stake in Jetstar Japan now, Qantas appears to be executing a disciplined retreat. Rather than continuing to battle high fuel costs and intense regional competition from rivals such as ANA’s Peach Aviation, the Australian group is consolidating its resources where it holds the strongest competitive advantage: its home market and direct international connections.
Despite the ownership change, operational ties between the carriers will not be entirely severed. Qantas and Japan Airlines will maintain their codeshare relationship, and Qantas and Jetstar Airways (Australia) will continue to operate their own aircraft between Australia and Japan. The sale strictly concerns the Japanese domestic joint venture entity.
Masakazu Tanaka, CEO of Jetstar Japan, expressed optimism about the transition in a statement:
“As we look to the next chapter… I am pleased to work with the new ownership group to lead our LCC into the future.”
Masakazu Tanaka, Jetstar Japan CEO
The airline will continue to compete in the Japanese LCC sector, which is currently seeing consolidation as major groups like JAL and ANA tighten control over their budget subsidiaries.
Qantas to Exit Jetstar Japan Stake; Airline Set for Rebrand
Transaction Details and Ownership Structure
Rebranding Timeline
Strategic Rationale
AirPro News Analysis
Future Operations
Sources
Photo Credit: Montage
Airlines Strategy
ANA Holdings FY2026-2028 Strategy Targets Narita Expansion
ANA Holdings plans 2.7 trillion yen investment focusing on Narita Airport expansion, fleet growth, and cargo integration through 2028.
This article is based on an official press release from ANA Holdings.
On January 30, 2026, ANA Holdings (ANAHD) announced its new Medium-term Corporate Strategy for fiscal years 2026 through 2028. Under the theme “Soaring to New Heights towards 2030,” the group has outlined a roadmap shifting from post-pandemic recovery to a phase of aggressive growth, underpinned by a record 2.7 trillion yen investment plan over the next five years.
The strategy identifies the planned expansion of Narita International Airport in 2029 as a critical business opportunity. According to the company, this infrastructure upgrade will serve as a catalyst for expanding its global footprint. Financially, the group is targeting record-breaking performance, aiming for 250 billion yen in operating income by FY2028 and 310 billion yen by FY2030.
A central pillar of the new strategy is the preparation for the massive infrastructure upgrade at Narita International Airport, scheduled for completion in March 2029. This expansion includes the construction of a new third runway (Runway C) and the extension of Runway B, which is expected to increase the airport’s annual slot capacity from 300,000 to 500,000 movements.
ANAHD views this development as a “once-in-a-generation” opportunity. The group’s network strategy is divided into two distinct phases:
To support this expansion, ANAHD plans to introduce new Boeing 787-9 aircraft starting in August 2026. These aircraft will feature upgraded seats in all classes, a move designed to enhance the airline’s premium appeal in the competitive international market. The total fleet is expected to expand to approximately 330 aircraft, exceeding pre-COVID levels.
Following the acquisition of Nippon Cargo Airlines (NCA) in August 2025, ANAHD is positioning itself as a “combination carrier” powerhouse. The strategy outlines a goal to integrate ANA’s passenger belly-hold capacity with NCA’s large freighter fleet, which includes Boeing 747-8Fs.
“The group aims to realize 30 billion yen in synergies, positioning the group as a global logistics powerhouse.”
, ANA Holdings Press Release
By combining these assets, the group intends to expand its Cargo-Aircraft scale (Available Ton-Kilometers) by 1.3 times, targeting leadership in the Asia-North America and Asia-Europe trade lanes. The group’s low-cost carrier, Peach, is also targeted for 1.3x growth in scale. The strategy emphasizes capturing inbound tourism demand through Kansai International Airport and expanding international medium-haul routes.
The financial roadmap set forth by ANAHD is ambitious. The group aims to achieve an operating margin of 9% by FY2028 and 10% by FY2030. To achieve these figures, the company has committed to a 2.7 trillion yen investment over five years, with 50% allocated to international passenger and cargo growth.
AI is another significant investment area, with 270 billion yen allocated to digital initiatives. The group aims to increase value-added productivity by 30% by FY2030 compared to pre-COVID levels. This includes a focus on “Empowerment of All Employees,” training staff as digital talent to combat Japan’s shrinking workforce.
The strategic distinction between ANA and its primary domestic competitor, Japan Airlines (JAL), is becoming increasingly defined by hub strategy and cargo volume. While both carriers are modernizing fleets and targeting North American traffic, ANA’s explicit “dual-hub” timeline, banking heavily on the 2029 Narita expansion, suggests a long-term volume play that complements its high-yield Haneda operations.
Furthermore, the integration of NCA provides ANA with a diversified revenue stream that acts as a hedge against passenger market volatility. By securing dedicated freighter capacity via NCA, ANA is less reliant on passenger belly space than competitors who lack a dedicated heavy-freighter subsidiary, potentially giving them an edge in the logistics sector.
In response to market demands for capital efficiency, ANAHD has signaled a commitment to Total Shareholder Return (TSR). The policy includes maintaining a dividend payout ratio of approximately 20% and introducing a new interim dividend system starting next fiscal year. The group also noted it would execute flexible share buybacks.
On the Sustainability front, the group reiterated its goal of Net-Zero CO2 emissions by 2050, focusing on operational improvements and the accelerated adoption of SAF.
ANA Holdings Unveils Aggressive FY2026-2028 Strategy Targeting Narita Expansion
Strategic Pivot: The “2029 Catalyst”
Fleet and Product Upgrades
Cargo and LCC Integration
Peach Aviation Growth
Financial Targets and Digital Transformation
AirPro News Analysis
Shareholder Returns and Sustainability
Frequently Asked Questions
Sources
Photo Credit: Luxury Travel
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