Through a press release, Latvian company SmartLynx Airlines highlighted its role in the current aviation context in Europe. The demand for air travel on the continent is experiencing a marked increase and many airlines are sometimes unable to meet it with current resources.
Žygimantas Surintas, CEO of SmartLynx Airlines, remarked the great fluctuations that the aviation industry has experienced during the last three years. In that sense, the executive noted that the industry oscillated between the best year in its history in terms of turnover and the generalized standstill of 2020.
The mobility restrictions implemented to deal with the pandemic had a major impact on the airline industry. However, the situation began to improve with the relaxation of sanitary requirements in each of the jurisdictions and the gradual return of the different economic activities.
This recovery has been consolidated in recent months, sometimes exponentially. However, many airlines have a reduced number of personnel compared to 2019, due to layoffs and early retirements. This situation was compounded by supply chain problems, labor shortages in other areas that contribute to normal operations, geopolitical tensions and the sharp increase in fuel prices.
In addition, there have been strikes that affected services in the last few weeks. The situation impacted on the beginning of the high summer season, one of the times of the year with the highest concentration of passengers. There were massive rescheduling and cancellations at airports in Amsterdam, London, Frankfurt and Paris. The situation was particularly chaotic in the Netherlands and the United Kingdom.
The crisis as an opportunity
In this context, the role of a company like SmartLynx Airlines becomes more relevant. The company is one of Europe’s leading providers of ACMI services. That is, it provides its own aircraft, crews, maintenance services and insurance to its lessees.
It currently has a market share of up to 30% on the continent. In the United Kingdom the figure is 69%. It reported that its expansion in the British market was helped by the shortage of employees following Brexit. Many airlines opt to contract aircraft and crews to companies that provide these services, as aircraft registered in the country must be operated by crew composed of British citizens or holding work permits.
«Buying new aircraft means enormous investment, and for the purchase to be profitable, the plane needs to be up in the air all year round, carrying cargo or passengers», argued Žygimantas Surintas. «That is why airlines do not purchase additional aircraft for crisis situations, but rather lease aircraft from other airlines when necessary», he added.
The company noted that the pandemic also opened up opportunities to develop new business units. Beyond tourist charters, it increased its cargo and MRO unit, with the opening of SmartLynx Technik centres in Riga and Tallinn.
As reported by SmartLynx Airlines, its investment during 2022 will reach 50 million euros. The initiative is linked to their projection for the next three to five years, a period in which they foresee a growth in the ACMI services sector.
According to the company’s own data, leased flights accounted for 75% of its operations during the first half of the year. Charter operations accounted for 15% and air cargo, one of the segments with the best future prospects, represented the remaining 10%.
See also: Strikes, staff shortages and a new wave of Covid: chaos at Europe’s airports
