With the ongoing issues with Pratt & Whitney affecting airlines, does this provide an opportunity for growth in the ACMI market?
AviationSource got to sit down with the CEO of GetJet Airlines, Rūta Kulvinskaite, who gave us some insight into this potential opportunity.
Without further ado, let’s get into it…
Pratt & Whitney Issues: An Open Opportunity Says CEO of GetJet Airlines Rūta Kulvinskaite…
In this short interview with Kulvinskaite, I asked three questions to do with the ongoing Pratt & Whitney issues. They are:
- Is this an open opportunity for ACMI charters to thrive int he years ahead whilst this issue is still ongoing?
- Is this going to encourage further second-hand aircraft acquisitions to meet this upcoming demand?
- What is her indication of the Summer 2024 seasons in terms of overall business growth?
On the open opportunity for ACMI charters, she said:
“There are several reasons behind the increase in the demand for ACMI operations and issues with the engines are definitely one of them.”
“Other reasons I could mention are delay of new aicraft manufacturing and delivery, lack of spare parts and crews, still growing number of passengers.”
“Airlines face these issues and need support to continue their flight operations and carry passengers around the globe.”
“Growing demand for ACMI operations opens up a lot of opportunities for companies like GetJet Airlines.”
“We at GetJet Airlines are committed to supporting airlines in need of aircraft or crew by delivering individually customized services.”
“We are monitoring the aviation market and quickly responding to arising needs. For example, just before the peak of the summer season, we expanded our fleet by adding 2 Boeing 737 NG units and 3 Airbus A320s.”
“The recent joiner of GetJet Airlines fleet – Airbus A321. This expansion of our capacities lets us keep our company‘s flexibility and fulfill all commitments to our customers.
Will This Acquire Further Second-Hand Aircraft Acquisitions To Meet This Upcoming Demand?
On whether this will encourage further second-hand aircraft acquisitions, Kulvinskaite responded in the perspective of GetJet Airlines:
“As aircraft search and communication with various lessors is a constant process, it enables us to keep flexibility and timely response to the needs of our customers.”
“Like every year before the high season, we expand our fleet based on the market and our customers’ demand.”
“As we are monitoring the situation in the market, we predict that next year won’t bring us any surprises, thus we are planning to add additional units to our fleet and offer our customers more capacity.”
“Now we are negotiating with several major lessors and expect to conclude deals soon.”
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Positive Indications for Summer 2024: Growth Will Slow Down Eventually…
Looking ahead to Summer 2024 and ACMI trading, Kulvinskaite remains positive, but believes this growth will slow down eventually.
“Through the past few years after COVID-19 our business has grown consistently along with growing demand for ACMI operations.”
“This summer we have reached a peak by signing a significant number of wet-lease agreements with new customers and renewing the partnerships with our previous ones.”
“Notably, we have observed proactive indications from several airlines, manifesting their intent to secure slots for ACMI operations during the summer of 2024, with ongoing negotiations in progress.
“I believe that at some point the growth of passengers should slow down, some technical and supply issues should be resolved and the demand for additional capacities might stabilize at a more moderate level.”
“Fortunately, our fleet’s size remains optimal to promptly respond to evolving industry dynamics, ensuring the continual utilization of all our assets throughout the entire season.”
Overall: Will ACMI Carriers Stand to Benefit from the Pratt & Whitney Issues?
Looking to the short-to-medium term, ACMI carriers such as GetJet Airlines look like they stand to benefit from the ongoing Pratt & Whitney issues.
As capacity gets cut by airlines because of these problems, of which we have seen Wizz Air do recently, it will be interesting to see how many more second-hand aircraft such providers will need to use to cater to demand.
For the Summer 2024 season, which is already expected to be another record-high, aircraft from the likes of GetJet Airlines and other ACMI providers will be needed to ensure that as much revenue capture is achieved with as little problems down the road.
Either way, it’s going to be an interesting one to watch that’s for sure.
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