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Air Serbia and airBaltic Expand Airbus A220 Partnership for Growth

Air Serbia and airBaltic deepen cooperation with a two-year Airbus A220 ACMI wet-lease, enhancing fleet modernization and efficiency across Europe.

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Air Serbia and airBaltic Deepen Ties with Strategic A220 Partnership

In the dynamic world of European aviation, partnerships are crucial for growth, efficiency, and modernization. A prime example of this is the evolving relationship between Air Serbia, the flag carrier of Serbia, and airBaltic, its Latvian counterpart. What began over a decade ago as a straightforward codeshare agreement has now blossomed into a significant strategic alliance. This new chapter is marked by a comprehensive two-year wet-lease agreement, signaling a deeper integration of their operational strategies and a shared vision for the future of regional air travel.

This expanded cooperation is more than a simple capacity-sharing deal; it represents a pivotal moment for both airlines. For Air Serbia, it offers a low-risk, high-reward opportunity to test and evaluate one of the most modern and efficient narrow-body aircraft on the market, the Airbus A220-300. For airBaltic, it solidifies its position as a leading ACMI (Aircraft, Crew, Maintenance, and Insurance) provider in Europe, leveraging its expertise and all-A220 fleet to support other carriers. This agreement, therefore, sets the stage for significant operational enhancements and provides a blueprint for future fleet decisions, ultimately benefiting passengers with an improved travel experience.

Dissecting the Expanded Cooperation

The cornerstone of this enhanced partnership is a two-year ACMI wet-lease agreement, which officially commenced on November 1, 2025. This model is a comprehensive solution where one airline (airBaltic) provides the aircraft, crew, maintenance, and insurance to another airline (Air Serbia), which then operates the flights under its own brand and flight numbers. This arrangement allows Air Serbia to quickly and efficiently expand its operational capacity without the immediate capital expenditure and logistical complexities associated with purchasing new aircraft and training crews.

The agreement is structured to scale with seasonal demand. During the winter 2025 season, two of airBaltic’s Airbus A220-300 aircraft will operate on behalf of Air Serbia. This number is set to double to four aircraft for the busier summer 2026 season, demonstrating a clear commitment to a long-term, flexible partnership. The initial phase will see these modern jets deployed on 19 of Air Serbia’s routes from its Belgrade hub, serving key European destinations such as Paris, Amsterdam, London, Zurich, and Madrid. The very first flight under this new arrangement was scheduled from Belgrade to Zurich, marking the official start of a new era of collaboration.

It is noteworthy that airBaltic secured this contract in a competitive environment, reportedly chosen over fourteen other European airlines. This underscores the strength of their offer and the quality of their all-A220 operational model. As a specific operational detail, it has been clarified by airBaltic that its aircraft and crews will not be utilized on Air Serbia’s routes to Russia, ensuring compliance with international aviation regulations and sanctions.

The Airbus A220-300: A Game-Changer for Passengers and Operations

The centerpiece of this agreement is the Airbus A220-300. With a seating capacity of 148, this aircraft is renowned for its superior operational efficiency and passenger-centric design. For travelers on Air Serbia flights, the introduction of the A220 represents a significant upgrade in comfort. The aircraft features a modern cabin with wider seats, larger windows that allow for more natural light, and more spacious overhead luggage bins. These elements combine to create a more pleasant and comfortable in-flight experience compared to older-generation narrow-body jets.

Beyond passenger comfort, the A220-300 delivers substantial environmental and operational benefits. It is recognized for its exceptional fuel efficiency, consuming significantly less fuel per seat than previous-generation aircraft. This efficiency not only reduces operational costs but also lowers carbon emissions. Furthermore, the A220 boasts a considerably smaller noise footprint, making it a more welcome neighbor at airports and contributing to a quieter cabin environment for passengers. These characteristics align with the broader aviation industry’s goals of achieving more sustainable operations.

“This partnership is of particular importance for Air Serbia, as on our flights, passengers will have the opportunity to travel comfortably and quickly to their destinations aboard modern Airbus A220-300 aircraft… This type of aircraft will be an important model and reference point for future decisions regarding the composition of Air Serbia’s fleet.” , Jiří Marek, CEO of Air Serbia

A Strategic Win-Win for Both Carriers

This partnership is a masterclass in strategic alignment, offering distinct and complementary advantages to both Air Serbia and airBaltic. It moves far beyond a simple transactional lease, creating a symbiotic relationship that strengthens each airline’s respective market position and long-term strategy. The collaboration is built on a foundation of over a decade of cooperation, evolving from a simple codeshare to a deeply integrated operational alliance.

Air Serbia: A Live Testbed for Fleet Modernization

For Air Serbia, this agreement serves as a crucial “live evaluation platform.” The airline’s current narrow-body fleet is primarily composed of Airbus A319 and A320 family aircraft. While reliable, the carrier has been actively exploring options for fleet renewal. The two-year wet-lease provides an invaluable opportunity to introduce the A220-300 into its network and gather real-world data on its performance, fuel consumption, maintenance reliability, and, critically, passenger feedback. This hands-on experience will allow Air Serbia’s management to make a well-informed, data-driven decision about its future long-term fleet composition without the immediate financial burden of a multi-billion dollar aircraft order. It is a prudent, strategic step toward modernization.

airBaltic: Cementing Leadership in ACMI Services

For airBaltic, this deal reinforces its successful business strategy centered around the Airbus A220-300. As the global launch customer and the world’s largest operator of the type, airBaltic possesses unparalleled expertise in flying and maintaining this specific aircraft. Since transitioning to an all-A220 fleet in 2020, the airline has honed its operations to maximize efficiency. The ACMI model allows airBaltic to leverage this expertise, ensuring high utilization rates for its growing fleet,which it plans to expand from 50 to 100 aircraft by 2030. Providing wet-lease services to partners like Air Serbia creates a stable and predictable revenue stream, complementing its own scheduled passenger services and de-risking its ambitious expansion plans.

“Expanding this cooperation through the ACMI agreement supports efficient fleet use and reliable operations for both airlines. The ACMI model enables airBaltic to provide flexible capacity to partner airlines across Europe while maintaining consistent product quality and operational reliability with our modern Airbus A220-300 fleet and experienced crews.” , Thomas Ramdahl, Chief Commercial Officer at airBaltic

Conclusion: A Partnership Shaping Regional Aviation

The expanded agreement between Air Serbia and airBaltic is a forward-thinking move that highlights a growing trend of deeper, more strategic partnerships in the European airline industry. It transcends a standard lease arrangement, creating a mutually beneficial platform for growth, evaluation, and operational excellence. Air Serbia gains a modern, efficient aircraft to enhance its passenger experience and inform its future fleet strategy, while airBaltic capitalizes on its A220 expertise to strengthen its position as a premier ACMI provider.

Looking ahead, this collaboration could serve as a model for other regional carriers. It demonstrates how airlines can leverage each other’s strengths to navigate the complexities of fleet modernization, seasonal demand, and operational efficiency. For passengers in the Balkan and Baltic regions, this partnership translates directly into a better travel experience, with access to one of the most comfortable and sustainable aircraft in its class. The success of this two-year venture will undoubtedly be watched closely by the industry and will play a crucial role in shaping the future fleets and operational models of both Air Serbia and airBaltic.

FAQ

Question: What is an ACMI wet-lease agreement?
Answer: An ACMI agreement stands for Aircraft, Crew, Maintenance, and Insurance. It is a type of leasing arrangement where the leasing airline (in this case, airBaltic) provides the aircraft, the flight and cabin crew, all necessary maintenance, and the insurance to the lessee airline (Air Serbia), which then operates the flight under its own brand.

Question: Which aircraft is being used in this partnership?
Answer: The agreement involves the use of modern and fuel-efficient Airbus A220-300 aircraft, each with a capacity of 148 seats. airBaltic is the world’s largest operator of this aircraft type.

Question: Why is this agreement important for Air Serbia’s future?
Answer: It allows Air Serbia to test the Airbus A220-300 in its own network without the immediate cost of purchasing the planes. This “live evaluation” will provide critical data on performance, costs, and passenger satisfaction to help the airline make a final decision on its future fleet modernization.

Question: How many aircraft are involved and for how long?
Answer: The agreement is for two years. It starts with two A220-300 aircraft during the winter 2025 season and will increase to four aircraft for the summer 2026 season.

Sources: Air Serbia

Photo Credit: Air Serbia

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Route Development

Air France Moving to JFK New Terminal One in Early 2027

Air France relocates to JFK’s New Terminal One in early 2027, opening a 29,000 sq ft lounge for premium passengers.

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Airlines Air France will relocate its New York operations to John F. Kennedy International Airport (JFK) New Terminal One in early 2027, anchoring the move with a 2,700-square-meter premium lounge.

The transition, announced in a company press release on September 15, 2026, aligns with the Port Authority of New York and New Jersey’s $19 billion redevelopment of the airport. The new facility will become the largest lounge in the French flag carrier’s international network, designed to support its high-frequency transatlantic schedule.

Premium passenger experience and lounge specifications

The planned lounge will span approximately 29,000 square feet and accommodate up to 400 guests. The space is designed to serve passengers traveling in the airline’s La Première and Business class cabins, along with Flying Blue Elite Plus and Flying Blue Ultimate loyalty members.

Nicolas Henin, Senior Vice President for North America at Air France, highlighted the carrier’s history in the region and the strategic focus on high-yield traffic:

New York is one of Air France’s most important and iconic markets, and this year we are especially proud to celebrate 80 years of serving New York. With our move to New Terminal One and the opening of this new lounge, we are taking our premium travel experience to a new level, continuing to invest not only in the flight itself, but providing elegance in every moment of the journey.

Flight operations and terminal integration

Air France currently operates six daily flights to New York-JFK. Four of these services utilize Boeing 777-300ER aircraft equipped with the airline’s La Première cabin. Across the broader New York market, including Newark Liberty International Airport (EWR), the carrier operates 11 daily flights from Paris-Charles de Gaulle Airport (CDG) during the summer season.

The New Terminal One is managed by a consortium led by Ferrovial, JLC Infrastructure, Ullico, and Carlyle. Jennifer Aument, CEO of The New Terminal One, described the Air France-KLM Group as a key anchor carrier and valued long-term partner. She noted the new lounge will enhance the departure experience for Air France, KLM Royal Dutch Airlines, and SkyTeam alliance customers.

The opening of the terminal is scheduled for early 2027. According to reporting by The Points Guy, this timeline represents a shift from an original 2026 target. Terminal officials indicated the adjusted schedule allows operators to thoroughly test systems and processes prior to commencing passenger operations.

AirPro News analysis

We view Air France’s commitment to The New Terminal One as a strategic consolidation of SkyTeam’s premium footprint at JFK. By dedicating 2,700 square meters to a single lounge, the carrier is aggressively defending its market share on the highly competitive New York-Paris route. The delayed opening to early 2027 is a prudent measure for a $19 billion infrastructure project, as early operational disruptions at new Airports can severely damage an airline’s brand reputation among premium passengers.

Sources: Air France Corporate

Photo Credit: Air France Corporate

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Commercial Aviation

Harbour Air to Acquire Pacific Coastal Airlines in BC Merger

Harbour Air and Pacific Coastal Airlines merge to form a 59-aircraft regional group operating 300 daily flights across British Columbia.

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Harbour Air and Pacific Coastal Airlines announced an acquisition agreement on September 15, 2026, to form a consolidated regional aviation group in Western Canada. The transaction merges Harbour Air’s extensive seaplane operations with Pacific Coastal Airlines’ wheeled turboprop network, creating a combined entity operating up to 300 daily flights across British Columbia.

In a joint press release, the companies confirmed that both airlines will remain under Canadian ownership and continue to operate as independent brands. The mergers aims to enhance year-round reliability during weather disruptions and expand connectivity for 25 communities through Vancouver International Airport (YVR).

Fleet integration and operational independence

Despite the acquisition, the two carriers will maintain separate Air Operator Certificates (AOCs) and operating teams. According to the official announcement, Pacific Coastal Airlines will retain its name and brand identity while operating under the new joint ownership structure.

The combined fleet will total 59 aircraft. Harbour Air brings 40 floatplanes to the group, including de Havilland Canada DHC-2 Beavers, DHC-3 Turbo Otters, and Twin Otters. Pacific Coastal Airlines contributes 19 wheeled turboprop aircraft. This mixed-fleet capability is designed to provide greater operational flexibility, particularly during the frequent weather disruptions common in the Pacific Northwest.

The new regional airline group will employ more than 900 people. Both airlines share historical roots, having been founded in Richmond, British Columbia, during the 1980s, with Pacific Coastal Airlines officially launching in 1987.

Leadership perspectives and future offerings

Executives from both airlines emphasized the complementary nature of the merger. Harbour Air Chief Executive Officer Bert van der Stege stated that the creation of the new group represents a significant step for the company and the communities it serves.

“We have a long standing and deep respect for Pacific Coastal Airlines, for their role as a B.C. regional airline and their employees who have powered the airline for 40 years,” van der Stege said in a statement provided to TravelPulse Canada. “We look forward to welcoming them into the new group and investing together in building the leading regional airline group in Western Canada.”

Pacific Coastal Airlines President Quentin Smith noted that joining forces with Harbour Air will allow the wheeled-aircraft operator to invest in growth while maintaining its established brand. The new ownership group plans to introduce a common loyalty program across both brands and expand low-fare offerings throughout the network.

Regulatory approval and market context

The transaction remains subject to general regulatory approval from Canadian authorities. Because both Harbour Air and Pacific Coastal Airlines are privately owned, the financial terms of the acquisition have not been disclosed, and a specific closing date has not been announced.

The acquisition follows a period of network expansion for Harbour Air. The seaplane operator recently launched expanded service connecting Vancouver to Tofino and Victoria, and established a loyalty partnerships with Aeroplan in December 2025.

AirPro News analysis

We view this acquisition as a strategic consolidation of British Columbia’s regional aviation market. By combining floatplane and wheeled-aircraft operations under a single corporate umbrella, the new group can optimize route networks that were previously siloed by infrastructure requirements. The retention of separate AOCs mitigates the immediate regulatory and training complexities typically associated with merging distinct flight operations. The ability to route passengers seamlessly between coastal seaplane bases and the major hub at Vancouver International Airport positions the combined entity to capture a larger share of both local commuter traffic and international connecting passengers.

Sources: Pacific Coastal Airlines

Photo Credit: Pacific Coastal Airlines

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Aircraft Orders & Deliveries

UAC Signs Agreements for 85 Il-114-300 Aircraft with India

UAC signed preliminary deals with two Indian firms for 85 Il-114-300 turboprops, pending DGCA certification and firm contracts.

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United Aircraft Corporation (UAC) signed preliminary agreements with two Indian aviation firms on September 10, 2026, for the potential supply of 85 Ilyushin Il-114-300 regional turboprop aircraft.

Announced in a Rostec press release during the INNOPROM India exhibition in New Delhi, the commitments represent a significant export push for the newly certified Russian airliner. The proposed acquisitions are intended to support India’s UDAN regional connectivity program and could serve as a foundation for broader industrial cooperation between the two nations.

Agreement structure and prospective operators

The 85-aircraft commitment is split between two entities. Pinnacle Air signed a Letter of Intent (LOI) for 50 airframes, while Sleek Aviation signed a Memorandum of Understanding (MOU) for 35 aircraft. Neither company currently operates as a scheduled regional Airlines. Pinnacle Air is established as a charter operator providing helicopter and business aviation services, and Sleek Aviation, founded in 2018, does not currently operate an active fleet.

Reports indicate these firms may act as lessors rather than direct operators. Indian ultra-low-cost carrier Air Kerala is reportedly under consideration as a potential operator for up to 20 of the Il-114-300s. A separate report from ThePrint on September 15, 2026, claimed an Indian company named Omkam Aviations Pvt Ltd signed an LOI for 50 aircraft, though it remains unverified whether this is related to the Pinnacle Air agreement or represents a separate transaction.

UAC Chief Executive Officer Vadim Badekha stated the signings follow initial discussions that began when the aircraft was presented at the Wings India exhibition in January 2026.

“We saw strong interest in this aircraft from local operators, and today this interest was formalised in agreements. We plan to conclude the first firm Contracts by the end of this year,” Badekha said.

Aircraft production and certification hurdles

The Ilyushin Il-114-300 is a 68-seat regional turboprop powered by TV7-117ST-01 engines. The aircraft received its Russian type certificate in June 2026, clearing the design for serial production. Manufacturing is currently underway at UAC’s Lukhovitsy Aviation Plant near Moscow, with the first three production aircraft being assembled for domestic Russian operators. Initial Deliveries are projected by the end of 2026.

Dmitry Lelikov, Deputy General Director of Rostec, emphasized the aircraft’s domestic supply chain in the press release.

“The Il-114-300 is a fully Russian-made aircraft where all components from Avionics to the TV7-117ST-01 engines is produced by local manufacturers,” Lelikov said. “Utilization of the Il-114-300 by local airlines will facilitate implementation of the UDAN national program that is aimed at making air travel more accessible and involves setting up new regional Airports all over India.”

Before any deliveries to India can occur, the Directorate General of Civil Aviation (DGCA) must validate the Russian type certificate. This regulatory process has not yet been completed.

Industrial partnership proposals

Beyond airframe sales, UAC is positioning the Il-114-300 as a vehicle for localized aerospace development in India. Discussions are ongoing regarding the localization of maintenance, training, and potentially the production of both the Il-114-300 and the SJ-100 regional jet.

“As our cooperation develops, we are prepared to move forward and transition to an industrial partnership for service, maintenance, personnel training, and even localisation of Il-114-300 production in India,” Badekha noted.

AirPro News analysis

We view these preliminary agreements as highly speculative. While the sheer volume of 85 aircraft makes for a strong headline, the transition from non-binding LOIs and MOUs to firm, funded contracts faces substantial obstacles. The signing entities lack the operational infrastructure of scheduled regional airlines, suggesting a complex leasing arrangement would be required to place these airframes with actual carriers like Air Kerala.

More critically, DGCA validation of a new Russian type certificate presents a significant regulatory hurdle. Given the current international sanctions environment affecting Russian aerospace supply chains and financial transactions, executing a large-scale export order and establishing localized maintenance facilities in India will require navigating severe logistical and diplomatic complexities. Until firm contracts are signed and DGCA certification is secured, this remains a statement of intent rather than a guaranteed production backlog.

Sources: Rostec

Photo Credit: Rostec

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