Avia Solutions Group is establishing the first ACMI airline in Thailand

Avia Solutions Group, the world’s largest ACMI (Aircraft, Crew, Maintenance, and Insurance) provider, is establishing a new airline in Thailand in collaboration with local partners. It is planned that once Thai SmartLynx obtains its Air Operator's Certificate (AOC), it will commence operations at the beginning of 2025, with a fleet consisting of Airbus A320 aircraft. This will be the first airline in Thailand to offer ACMI services.

The new ACMI provider is being launched to meet seasonal aircraft capacity demand in Thailand. Tourism in Thailand is back to its pre-pandemic levels, with 40 million visitors expected by the end of 2024 for the first time since 2019, up from 28 million in 2023. An additional 5.5 million visitors are expected in 2025.

However, with only around 130 narrowbody aircraft in operation by Thailand providers currently, there will be a need for additional short haul capacity to meet different seasonal demand cycles in Thailand. This demand is counter seasonal to European demand.

Different peaks in demand for travel are mostly influenced by holiday seasons, weather, and the start of school year. Winter season demand in Thailand is mostly driven by tourists coming from overseas due to school holidays in winter, as well as by local school holidays, though the Thailand school year begins in May whilst in Europe it starts in September. Thai SmartLynx will bring in additional capacity to meet these peaks in demand in Thailand.

Being able to meet these demand peaks will require more additional short haul aircraft than are presently in the market. The introduction of ACMI-leased aircraft from Thai SmartLynx will help Thailand’s airlines meet seasonal demand in an optimal manner by providing flexible capacity solutions. Airlines that use ACMI strategies can see 2% to 3% increases in profitability.

Gediminas Ziemelis, Chairman of Avia Solutions Group said: “In 2023, the Airports of Thailand showed that domestic travel in Thailand has two distinct peak seasons, June-August and January-March. With a 10% increase in domestic tourism predicted in the country over the next few years, there is a clear need for ACMI to provide additional capacity to this market. Thai SmartLynx will play an important role in being the first Thai-based provider of ACMI. Once launched, it will introduce seasonal and flexible capacity to meet the country’s booming aviation market which has already recovered back to pre-pandemic levels this year.”

The establishment of Thai SmartLynx is part of the Group's strategic development focused on managing seasonality. Thailand is a market with the opposite seasonality to Europe, so if demand decreases during the winter, some aircraft will be able to be transferred to Thailand. 

Last year, Avia Solutions Group's airline company, BBN Airlines Indonesia, started operations, and earlier this year, the Group acquired the Australian airline Skytrans. Avia Solutions Group plans to establish ACMI service airlines in Brazil, the Philippines, and Malaysia.