Aviation Demand Fuels Avia Solutions Group Expansion
Dublin, Ireland - October 26, 2024 - Amidst a surging global demand for aircraft, Avia Solutions Group is positioning itself for significant growth, backed by significant investment and a major fleet expansion. The company cites a $30 billion (EUR 25.5 billion) worldwide Aircraft, Crew, Maintenance, and Insurance (ACMI) market requiring approximately 1,500 aircraft for operation, presenting a considerable opportunity for the rapidly expanding aviation services provider.
Currently operating a fleet of 209 aircraft, Avia Solutions Group is aggressively scaling its ACMI capabilities. This expansion is underscored by a recent order for 80 Boeing 737 MAX aircraft, a move aligning with the company’s commitment to sustainability and modernizing its offerings for clients. the investment signals a broader strategy to capitalize on the growing ACMI sector and provide fuel-efficient options within a rapidly evolving industry.
“We are seeing a massive growth potential solely in the ACMI services area,” the company stated, highlighting the scale of the opportunity. The Boeing 737 MAX order directly supports this ambition, enabling Avia Solutions Group to offer clients state-of-the-art, fuel-efficient aircraft as the industry increasingly focuses on reducing its environmental impact. The company is also investing in Sustainable aviation Fuel (SAF) production to further its commitment to greener aviation practices.
Financial backing for this expansion includes a EUR 300 million investment from Certares, a U.S. private equity firm, initially made in 2021 and subsequently converted into a 20% ownership stake in 2023. This confidence was further demonstrated in early 2024 with a triumphant EUR 255 million (USD 300 million) unsecured senior bond placement on the Euronext dublin exchange. Former U.S. Secretary of State Mike Pompeo serves as a strategic advisor to the group.
Avia Solutions Group’s current ownership structure reflects a balance between its founder and new investment. The company’s founder maintains approximately 60% ownership, with the remaining shares held by other stakeholders, including Certares. This capital structure positions Avia Solutions Group for continued expansion and solidifies its role as a key player in the global aviation market.
