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Avelo Airlines Restructures Fleet and Network Ahead of 2027 Growth

Avelo Airlines retires Boeing 737-700s, closes bases including Mesa AZ, and prepares for Embraer 195-E2 jets to support 2027 expansion.

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This article is based on an official press release from Avelo Airlines and accompanying industry data.

Avelo Airlines Announces Major Restructuring: Fleet Changes and Base Closures Ahead of 2027 Growth

On January 6, 2026, Avelo Airlines unveiled a comprehensive restructuring plan designed to stabilize its balance sheet and streamline operations. Following the completion of a Series C funding round, described by the carrier as its largest capital infusion since 2020, the airline is initiating a “simplification” strategy. This move involves closing specific crew bases, retiring older aircraft, and ending government charter operations to prepare for a new phase of expansion slated for 2027.

According to the airline’s announcement, these immediate reductions are necessary to bridge the gap between its current Boeing fleet and the arrival of new, more efficient Embraer aircraft. While the carrier reported profitability in four of the five months leading up to July 2025, a significant revenue drop in early 2025 necessitated this strategic pivot.

Fleet Transformation: Retiring the 737-700

A central component of the restructuring is an immediate shift in fleet composition. Avelo confirmed it will remove six Boeing 737-700 aircraft from service. These older models are being phased out in favor of the larger, more fuel-efficient Boeing 737-800s, which will serve as the backbone of the airline’s operations for the remainder of 2026.

This fleet consolidation is a transitional step. The airline explicitly stated that these moves are designed to prepare the infrastructure for the arrival of the Embraer 195-E2. Avelo has firm orders and options for up to 100 of these next-generation regional jets, with the first deliveries expected in early 2027. The E195-E2, with approximately 140 seats, is expected to lower trip costs and allow the airline to profitably serve thinner routes that are challenging for the larger 737s.

Network Changes and Base Closures

The restructuring includes significant changes to Avelo’s network footprint, specifically regarding crew bases. While the airline will continue to serve many of its existing markets, the operational hubs where crews are based will change.

Base Closures and DHS Contract Termination

Effective January 27, 2026, Avelo will close its base in Mesa, Arizona (AZA). This closure coincides with the airline’s decision to terminate its charter contract with the Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE). In its announcement, the airline cited “inconsistent revenue” and “operational complexity” as the primary reasons for ending these government flights.

Additionally, crew bases at Raleigh-Durham (RDU) and Wilmington (ILM) in North Carolina will be closed. However, the airline clarified that these locations will remain open as “spoke” stations, meaning flight service will continue, but crews will no longer be domiciled there.

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Future Growth: Dallas/McKinney

Despite the reductions, Avelo confirmed plans for future expansion. The airline announced a new base at Dallas/McKinney (TKI) in Texas, scheduled to open in late 2026. This strategic move aims to position Avelo to tap into the Dallas-Fort Worth market via a secondary airport, avoiding direct competition at the region’s primary hubs.

“The capital is being used to clean up the balance sheet, cover restructuring costs, and bridge the gap until the more efficient Embraer fleet arrives.”

Summary of Avelo Airlines Announcement

Financial Recapitalization

The operational changes are supported by a recently closed Series C funding round. While the exact dollar amount was not disclosed in the summary, the airline characterized it as the “largest single investment” since its initial $125 million Series A in 2020. Avelo claims this recapitalization places its cash position among the strongest in the U.S. airline industry relative to its size.

AirPro News Analysis

We view this announcement as a classic “shrink to grow” strategy, often seen in airlines transitioning between fleet types. By shedding the operational complexity of the DHS contracts and the older Boeing 737-700s, Avelo is reducing its cash burn during a bridge year. The pivot to the Embraer E195-E2 is critical; the 737-800 is often too large for the niche, secondary markets Avelo targets. The success of this restructuring will likely depend on the airline’s ability to maintain customer loyalty in affected markets like Raleigh and Wilmington while waiting for the more efficient Embraer jets to arrive in 2027.

Frequently Asked Questions

Will flights to Raleigh-Durham and Wilmington be cancelled?
While the crew bases are closing, the stations remain open. Flight schedules may be reduced or altered, but service to these cities is not being eliminated entirely.

What happens to passengers booked on cancelled flights?
According to the announcement, near-term schedule changes will affect some itineraries. Impacted customers are being notified via text and email to arrange refunds or rebooking.

Why is the Mesa, AZ base closing?
The Mesa base was heavily tied to the DHS charter operations. With the termination of that contract due to operational complexity, the base is being shuttered on January 27, 2026.

Sources

Photo Credit: Avelo Airlines

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Route Development

Vantage Group Expands Aviation Infrastructure with FSM and AvEnergy Acquisition

Vantage Group acquires FSM and AvEnergy, adding aviation fuel and de-icing infrastructure management at 16 Canadian airports to its portfolio.

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This article is based on an official press release from Vantage Group.

Vantage Group Acquires FSM and AvEnergy, Expanding into Fuel and Glycol Infrastructure

Vantage Group, a global leader in airport and transportation infrastructure development, announced on January 8, 2026, that it has acquired FSM Management Group and its subsidiary, AvEnergy Management Group. The transaction marks a significant vertical integration for Vantage, expanding its portfolio beyond terminal management into critical “upstream” utility operations, including aviation fuel and de-icing infrastructure.

Based in Montreal, FSM Management Group specializes in managing aviation fuel and glycol infrastructure, while AvEnergy serves as its operational arm, handling logistics and energy supply. According to the announcement, FSM currently manages infrastructure at 16 airports across Canada and administers 12 fuel and 4 glycol consortiums. This acquisition positions Vantage Group to oversee the essential, often invisible utility networks that keep major Airports functioning.

Note to Readers: This transaction involves Vantage Group, the Vancouver-based airport and infrastructure developer. It is unrelated to the insurance entity Vantage Group Holdings, which is currently subject to a separate acquisition agreement.

Strategic Rationale: From Terminals to Utilities

Vantage Group, known for leading high-profile projects such as the $4.2 billion development of JFK Terminal 6 and the completed redevelopment of LaGuardia Terminal B, stated that this move is designed to “future-proof” transportation infrastructure. By acquiring FSM and AvEnergy, Vantage gains direct control over the logistics of jet fuel and de-icing fluid (glycol), sectors that are facing increasing pressure to modernize.

Sami Teittinen, Chief Financial Officer of Vantage Group, emphasized the strategic fit of the Acquisitions in the company’s press statement:

“FSM and AvEnergy sit at the heart of the aviation ecosystem across the major Canadian airports with deep expertise in critical aviation infrastructure. This acquisition broadens our footprint beyond cargo and passenger operations… and allows us to continue to future proof critical transportation infrastructure across the globe.”

The deal allows Vantage to offer a more comprehensive “turnkey” solution to airport authorities. Rather than managing only the passenger-facing elements of an airport, the company can now oversee the complex consortiums that Airlines form to share fuel and de-icing costs and infrastructure.

AirPro News Analysis: The Sustainability Play

While the press release highlights operational expansion, AirPro News views this acquisition as a calculated move toward the energy transition. The aviation industry is aggressively pursuing Net Zero goals, heavily reliant on the adoption of SAF and environmentally friendly de-icing practices.

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Infrastructure is currently a bottleneck for SAF adoption. By owning the management and logistics arm (FSM/AvEnergy) responsible for fuel farms and hydrants at 16 Canadian airports, Vantage Group places itself in a prime position to lead the physical transition to greener fuels. Control over the “last mile” of fuel delivery gives Vantage a strategic advantage in implementing SAF blending and distribution systems that airports will require in the coming decade.

Operational Footprint and Leadership

FSM Management Group and AvEnergy bring a substantial operational footprint to the Vantage portfolio. FSM acts as an administrator for airline consortiums, groups of carriers that jointly own fuel infrastructure, managing construction, operation, and environmental compliance. AvEnergy provides the on-the-ground logistics to ensure safe delivery.

Robert Iasenza, President of FSM Management Group, noted the alignment between the two organizations regarding innovation and connectivity.

“Vantage Group has built a reputation by bringing innovative ideas to fruition and enhancing Sustainability and connectivity in airports, which aligns well to our priorities.”

Vantage Group is a wholly owned strategic platform of Investcorp Corsair Infrastructure Partners. Its international portfolio includes operations in Cyprus, Jamaica, The Bahamas, and multiple Canadian locations including Hamilton and Fort St. John.

Frequently Asked Questions

Is this the same Vantage Group involved in the insurance acquisition?
No. There are two distinct companies with similar names making headlines this week. This article concerns Vantage Group (Headquarters: Vancouver), an airport and infrastructure developer. The unrelated insurance company, Vantage Group Holdings, is involved in a separate transaction with Howard Hughes Holdings.

What does FSM Management Group do?
FSM specializes in the management of aviation fuel and aircraft de-icing infrastructure. They administer “consortiums,” which are groups of airlines that share ownership of fuel systems at airports, ensuring the infrastructure is maintained, compliant, and operational.

What is the value of the transaction?
The financial terms of the deal were not disclosed in the January 8 announcement, as this is a private transaction.

Sources: Vantage Group Press Release

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Photo Credit: FSM Group

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Aircraft Orders & Deliveries

Daher Delivers 76 Aircraft in 2025 with Focus on Special Missions

Daher delivered 76 turboprop aircraft in 2025, highlighting growth in special missions and expanding operations in Canada and Brazil.

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This article is based on an official press release from Daher.

Daher Reports 76 Aircraft Deliveries in 2025, Highlights Special Mission Growth

Daher delivered a total of 76 single-engine turboprop Commercial-Aircraft in 2025, marking a slight decrease in volume compared to the previous year while expanding its operational footprint in special mission sectors. According to the company’s official announcement, the 2025 figures reflect a resilient industrial performance amidst a challenging global Supply-Chain environment.

The French Manufacturers reported that while raw Deliveries numbers dipped by approximately 7.3% from the 82 units delivered in 2024, the year was characterized by significant milestones, including the delivery of the 600th TBM 900-series aircraft. The company emphasized that its “market expansion” strategy is currently driven by a broader customer base in government and utility sectors rather than immediate unit volume growth.

2025 Delivery Breakdown

Data released by Daher indicates that the TBM family continues to lead the company’s output, though both product lines saw minor contractions compared to 2024 figures. The delivery mix for 2025 included:

  • TBM Series: 51 aircraft delivered (primarily the TBM 960), down from 56 in 2024.
  • Kodiak Series: 25 aircraft delivered (a mix of Kodiak 100 and Kodiak 900), down from 26 in 2024.

Despite the reduction in total units, Nicolas Chabbert, CEO of Daher’s Aircraft Division, praised the industrial teams for maintaining delivery flows. In a statement regarding the year-end performance, Chabbert noted the company’s focus on fulfilling customer commitments.

“Our teams remained fully mobilized through the final days of 2025 with one clear priority: delivering for our customers. Their efforts underscored Daher Aircraft’s capacity to stay focused on execution and customer commitments, especially as conditions evolved during the year.”

— Nicolas Chabbert, CEO of Daher’s Aircraft Division

Strategic Expansion into Special Missions

A key element of Daher’s 2025 narrative is the diversification of its fleet usage. The manufacturer highlighted the delivery of additional TBM 960 aircraft to the Conair Group in Canada. These aircraft are configured as “birddogs”, lead planes used to guide air tankers during aerial firefighting operations. This deployment signals a shift for the TBM program, validating the high-speed turboprop’s utility in government and special mission roles beyond its traditional owner-pilot market.

Furthermore, Daher solidified its geographic presence in South America by establishing a permanent corporate footprint in Brazil late in the year. This move aims to support the region’s growing fleet, particularly in agricultural and remote transport sectors where turboprops are essential.

AirPro News Analysis: Contextualizing the Dip

While Daher’s press release focuses on operational expansion, the delivery figures offer a window into the broader state of the general aviation market in 2025. The dip of six units year-over-year suggests that supply chain frictions, referenced by Chabbert as “evolving conditions”, remain a constraint for manufacturers.

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When viewed alongside competitor performance, Daher’s stability appears robust. Industry data indicates that while Piper Aircraft saw growth in early 2025 driven by the M700 Fury, other competitors faced steeper hurdles. For instance, Swiss manufacturer Pilatus grappled with significant import tariff challenges in the U.S. market late in the year, which disrupted their delivery cadence. By comparison, Daher’s ability to deliver 76 units suggests a stabilized production line that, while slightly contracted, avoided the volatility seen elsewhere in the segment.

The strategic pivot toward “special missions” also provides a buffer against fluctuations in the private luxury market. By securing fleet Contracts for firefighting and utility roles, Daher is effectively insulating its order book against potential softening in consumer demand.

Sources

Daher Official Press Release, GAMA Industry Reports

Photo Credit: Daher

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Commercial Aviation

B&H Worldwide Delivers Airbus H145 Rescue Helicopters to New Zealand

B&H Worldwide manages delivery of two Airbus H145 rescue helicopters to New Zealand, enhancing air rescue capabilities with advanced avionics and safety features.

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This article is based on an official press release from B&H Worldwide.

B&H Worldwide Completes Critical Delivery of H145 Rescue Helicopters to New Zealand

Aerospace logistics specialist B&H Worldwide has successfully managed the complex international transport of two Airbus H145 rescue helicopters from Switzerland to New Zealand. According to an official announcement released on January 6, 2026, the delivery marks a significant milestone in the fleet renewal program for the Canterbury West Coast Air Rescue Trust and operator GCH Aviation.

The operation involved a multi-leg journey spanning thousands of miles, requiring specialized handling to meet strict biosecurity and safety standards. These new aircraft are set to replace the aging BK117 fleet, bringing advanced avionics and improved safety features to emergency medical services (HEMS) and search and rescue (SAR) operations across New Zealand’s South Island.

Executing a Complex Global Supply Chain

The logistics of moving rotary-wing aircraft requires precision planning to prevent damage to sensitive components and ensure compliance with international transport regulations. B&H Worldwide, which specializes in aerospace logistics, oversaw the entire supply chain for this project.

The journey began at the Rega Center in Zurich, Switzerland. From there, the helicopters were transported by road to Frankfurt, Germany. The long-haul leg of the journey was conducted via air freight on a Boeing 747 freighter, which routed through Hong Kong before landing in Auckland, New Zealand.

Upon arrival in Auckland, the aircraft underwent strict biosecurity checks to meet New Zealand’s Ministry for Primary Industries (MPI) standards. The final leg involved road transport to the GCH Aviation Air Rescue Base in Christchurch. B&H Worldwide managed the specialist crating, freight forwarding, customs clearance, and final mile delivery.

Lee Hedges, Branch Manager for New Zealand at B&H Worldwide, highlighted the company’s role in the operation:

“This project demonstrates the capability and agility of B&H Worldwide in handling highly specialized aerospace movements. By managing the complex logistics, we enabled GCH Aviation to focus on the technical aspects of the helicopter’s preparation and reassembly.”

Modernizing New Zealand’s Air Rescue Fleet

The delivery of these two H145 helicopters is part of a broader initiative to standardize and upgrade the air rescue capabilities in the Canterbury, West Coast, Nelson, and Marlborough regions. The fleet responds to over 1,700 missions annually, operating in some of the country’s most challenging alpine and coastal terrains.

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The Airbus H145 is a twin-engine light utility helicopter favored for its performance in high-altitude and hot climates. Key upgrades over the previous fleet include:

  • Helionix Avionics Suite: A 3-screen digital cockpit with a 4-axis autopilot to reduce pilot workload.
  • Enhanced Safety: A Fenestron shrouded tail rotor and high-set main rotor to improve safety for ground crews.
  • Night Operations: Full compatibility with Night Vision Goggles (NVG).
  • Mission Capability: “Auto-hover” technology essential for winching operations and a larger cabin for medical equipment.

Declan Smiddy, CEO of GCH Aviation, emphasized the operational benefits of the new aircraft:

“The arrival of the H145 represents a significant step forward in our commitment to strengthening air rescue and emergency medical services in New Zealand. The efficiency and expertise of B&H Worldwide ensured the helicopter’s smooth journey from Europe to our facility.”

AirPro News Analysis

The successful delivery of these assets underscores the critical nature of specialized logistics in the aerospace sector. Unlike standard freight, rescue helicopters contain sensitive avionics and calibration equipment that can be easily compromised by improper handling or temperature fluctuations during transit. By utilizing a combination of road and nose-loading freighter aircraft (like the Boeing 747), logistics providers can minimize handling risks.

Furthermore, the biosecurity aspect of this delivery is particularly notable for New Zealand. The country maintains some of the strictest bio-protection laws in the world to protect its agricultural economy. Logistics providers must ensure that crating materials and the cargo itself are free of contaminants before entry, adding a layer of regulatory complexity to an already difficult physical move.

Future Outlook

This delivery is part of a purchase of four H145 helicopters intended to standardize the fleet across the upper South Island. The first aircraft arrived in August 2025 and entered service in December 2025. With the arrival of these two additional units in January 2026, the fleet renewal is nearing completion, with a final aircraft and flight simulator expected later in the year.

Christine Prince, CEO of the Canterbury West Coast Air Rescue Trust, noted the impact on the community:

“The arrival of the Airbus H145 helicopters represents a significant upgrade in capability and reliability… Once fully commissioned, the aircraft will support emergency medical… missions across the Canterbury, West Coast, Nelson and Marlborough regions.”

Frequently Asked Questions

What helicopters were delivered to New Zealand?

Two Airbus H145 rescue helicopters were delivered. They are twin-engine aircraft equipped with advanced avionics and rescue hoists.

Who managed the logistics for the delivery?

B&H Worldwide, a specialist aerospace logistics company, managed the transport from Switzerland to New Zealand.

Which organization will operate the new helicopters?

The helicopters will be operated by GCH Aviation (Garden City Helicopters) on behalf of the Canterbury West Coast Air Rescue Trust.

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Why are the H145 helicopters significant?

They replace the aging BK117 fleet, offering better safety features, night vision compatibility, and auto-hover capabilities for difficult rescue missions.

Sources

B&H Worldwide

Photo Credit: B&H Worldwide

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