10 Feb 2025
Acumen Daily Aviation Brief - 10th February 2025
Acumen Aviation Newsletters
Acumen Aviation’s newsletters offer deep dives into the most impactful trends and developments across the aviation sector. These resources are crafted to keep you informed about critical industry changes and provide actionable insights:
- China Aviation Industry Newsletter: This edition discusses Astral Aviation's global expansion through GSA appointments, Cathay Pacific's partnership with Mott 32 to enhance lounge dining and the CAAC's new rules for international flight market access.
READ NOW: https://www.acumen.aero/blogs/-2-feb-2025-china-aviation-industry-newsletter
- India Aviation Industry Newsletter: This newsletter highlights Air India's codeshare partnership with Kenya Airways, Air India Express's new daily service between Mangaluru and New Delhi, and IndiGo's expanded operations to accommodate Maha Kumbh 2025 demand.
READ NOW: https://www.acumen.aero/blogs/-2-feb-2025-india-aviation-newsletter
- Irish Aircraft Leasing Newsletter: This edition reports on AerCap's $1.5 billion senior notes offering, Avolon's forecast of Asia-Pacific-driven growth pushing global airline revenue beyond $1 trillion in 2025, and Milestone Aviation's helicopter leasing deal with Equinor.
READ NOW: https://www.acumen.aero/blogs/-2-feb-2025-irish-aircraft-leasing-newsletter
- Irish Commercial Aircraft Update: This update highlights significant movements in the Irish aviation sector, including Aer Lingus's acquisition of a new Airbus A321-253NY, Air Astana's ferrying of an Embraer 190-E2 to Amman, and ITA Airways' repositioning of an Airbus A320-214 to Varna. Additionally, it covers ASL Airlines Ireland's transfer of a Boeing 737-4Q8(F) to Mojave for potential modifications and Aergo Capital's ferrying of an Airbus A330-343 to Shanghai for Passenger-to-Freighter conversion.
READ NOW: https://www.acumen.aero/blogs/-2-feb-2025-irish-commercial-aircraft-update
- North American Aviation Newsletter: This newsletter covers major developments in North American aviation, including Delta's resumption of Tel Aviv service, JetBlue's expanded partnership with TAP Air Portugal, Southwest Airlines' IOSA certification, and United's restart of Newark-Tel Aviv flights.
READ NOW: https://www.acumen.aero/blogs/-2-feb-2025-north-american-aviation-newsletter
IrishAero News
Air Astana Adds EI-KID Airbus A320neo
Air Astana has expanded its fleet with the addition of a new Airbus A320neo, registered as EI-KID (MSN 12360). The aircraft arrived in Almaty on January 29, 2025, directly from Toulouse, France. Configured with 16 business class and 132 economy class seats, this marks the tenth A320neo in Air Astana's fleet, bringing their total to 58 aircraft. The new jet will operate on routes within Kazakhstan and to neighbouring cities such as Tashkent, Baku, Tbilisi, and Dushanbe.
Acumen's Take:
The induction of the Airbus A320neo aligns with Air Astana's strategy to modernise its fleet and enhance fuel efficiency. The A320neo's advanced aerodynamics and efficient engines offer significant fuel savings and reduced emissions, supporting sustainable growth. Deploying this aircraft on regional routes will provide passengers with improved comfort and reliability, strengthening Air Astana's competitive position in Central Asia.
Tailte Éireann and AFTA Unveil Aircraft Partnership
Tailte Éireann, in collaboration with the Atlantic Flight Training Academy (AFTA) based at Cork Airport, has introduced two new P.68 Vulcanair aircraft equipped with Leica TerrainMapper-2 and CityMapper-2 aerial sensors. This partnership aims to enhance national surveying capabilities, enabling faster and more accurate data collection for mapping purposes. The initiative is expected to benefit developers, planners, environmental authorities, and citizens across Ireland.
Acumen's Take:
This collaboration signifies a significant advancement in Ireland's national surveying infrastructure. The integration of advanced aerial sensors with specialised aircraft will facilitate high-precision data acquisition, essential for urban planning, environmental monitoring, and infrastructure development. Moreover, this partnership underscores the importance of aligning technological innovation with national development goals, setting a benchmark for future public-private collaborations.
United Airlines Boosts Dublin-Newark Capacity
Effective January 31, 2025, United Airlines has upgraded its daily Dublin to Newark service by replacing the 231-seat Boeing 767-400 with a 276-seat Boeing 777-200(ER). This change adds 630 seats per week to the route. The Boeing 777-200(ER) offers 50 United Polaris business class seats, 24 United Premium Plus premium economy seats, 46 Economy Plus seats, and 156 economy seats. Additionally, from March 29 to October 24, 2025, United will operate a second seasonal frequency between Dublin and Newark using a Boeing 757-200(ER), providing 176 seats, including 16 flat-bed United Polaris business class seats.
Acumen's Take:
United Airlines' capacity enhancement on the Dublin-Newark route reflects the growing demand for transatlantic travel and the strategic importance of this corridor. The deployment of larger aircraft with diverse cabin offerings caters to a broad passenger demographic, from business travellers seeking premium services to leisure travellers desiring affordability. This move not only strengthens United's market presence but also bolsters connectivity between Ireland and the United States, fostering economic and cultural exchanges.
Aircraft Update
EC-OKJ Airbus A320-232 c/n 7809 Delivered to Vueling
On February 7, 2025, Vueling Airlines took delivery of an Airbus A320-232, registered as EC-OKJ (c/n 7809), at Castellón Airport. This aircraft, previously registered as OE-IOG, was initially delivered in September 2017 and has been configured to accommodate 180 passengers in an all-economy layout.
Acumen's Take:
Vueling's acquisition of this relatively young A320-232 aligns with its strategy to modernise and expand its fleet to meet growing demand in the European low-cost market. The choice of an all-economy configuration maximises seat capacity, catering to cost-sensitive travellers. This move is expected to enhance Vueling's operational efficiency and route flexibility, reinforcing its competitive position in the market.
N996JA Airbus A330-343 c/n 1093 Ferried by Jetran
On February 6, 2025, an Airbus A330-343, registered as N996JA (c/n 1093), was ferried by Jetran from Muscat, Oman, via Shannon Airport, Ireland, to Mojave Air & Space Port in California. The aircraft, formerly operated by Oman Air as A4O-DE, retains elements of its previous livery.
Acumen's Take:
The ferrying of this A330-343 to Mojave, a well-known aircraft storage and dismantling facility, suggests that the aircraft may be slated for storage, sale, or part-out operations. Given the aircraft's age and previous operator, Jetran's involvement indicates a strategic decision to manage the asset's lifecycle effectively, potentially capitalising on the demand for used serviceable materials or future lease opportunities.
Global Aviation News
Lufthansa Group Strengthens Wet Lease Partnership with airBaltic
The Lufthansa Group has expanded its wet lease agreement with airBaltic, extending the collaboration for an additional three years beyond the summer of 2025. This partnership will see up to 21 of airBaltic's Airbus A220-300 aircraft operating flights on behalf of Lufthansa Group airlines.
Acumen's Take:
This extended partnership underscores the strategic value of wet lease agreements in enhancing operational flexibility and capacity management. For Lufthansa Group, leveraging airBaltic's modern A220-300 fleet allows for efficient route optimisation and cost-effective expansion without immediate capital expenditure on new aircraft. For airBaltic, this collaboration ensures fleet utilisation and revenue stability, highlighting the mutual benefits of such alliances in the current aviation landscape.
Royal Jordanian Increases Its Shares in Jordan Flight Catering Company to 51%
Royal Jordanian has increased its ownership stake in the Jordan Flight Catering Company to 51%. This move aligns with the airline's strategy to enhance its service offerings and operational efficiency. The Jordan Flight Catering Company, a joint venture with Dnata and Eastern Aviation Investments, will continue to be managed independently by Dnata under a long-term agreement.
Acumen's Take:
By acquiring a majority stake in its catering subsidiary, Royal Jordanian is taking a proactive approach to control service quality and streamline operations. This strategic investment is likely to lead to improved in-flight service standards and potential cost savings through better resource management. Maintaining dnata's management ensures that global best practices in catering services are upheld, benefiting both Royal Jordanian and other airline clients.
Somon Air Concludes an Agreement with DAE Capital for the Delivery of Two Boeing 737 MAX Aircraft
Somon Air has signed an agreement with DAE Capital for the acquisition of two new Boeing 737-8 aircraft, scheduled for delivery in 2026. This initiative is part of the airline's long-term strategy to modernise its fleet and enhance service quality. The new aircraft are expected to improve fuel efficiency, expand route networks, and increase flight frequencies.
Acumen's Take:
Somon Air's fleet modernisation plan reflects a commitment to operational efficiency and passenger satisfaction. The Boeing 737-8, known for its fuel efficiency and extended range, will enable the airline to operate more economically and explore new markets. This strategic move positions Somon Air to better compete in the regional aviation market and meet evolving passenger expectations.
Wizz Air Places Focus on Network Densification
Wizz Air is concentrating on network densification as it recovers from previous aircraft groundings and supply chain disruptions. The airline aims to strengthen its existing routes and increase flight frequencies to enhance operational efficiency and market presence.
Acumen's Take:
Focusing on network densification allows Wizz Air to maximise asset utilisation and improve profitability on established routes. This strategy can lead to increased market share in key regions and better resource allocation. By enhancing frequency and capacity on existing routes, Wizz Air can offer more convenient options to passengers, thereby strengthening customer loyalty and competitive positioning.
Irish Aviation News
IATA Director General Willie Walsh's Statement on UK Airport Expansion
On January 29, 2025, IATA's Director General, Willie Walsh, addressed the topic of UK airport expansion. He emphasised the critical need for infrastructure development to accommodate growing passenger demand and to maintain the UK's competitive position in global aviation. Walsh highlighted that timely decision-making and investment in airport capacity are essential to prevent congestion and inefficiencies that could hinder economic growth.
Acumen's Take:
Walsh's statement underscores the importance of proactive infrastructure planning in the aviation sector. For asset managers and investors, this highlights potential opportunities in airport development projects and related services. Strategic investments in expanding airport capacities can lead to enhanced operational efficiencies and meet the anticipated rise in passenger numbers, thereby supporting long-term economic benefits.
Veronica Sesoko of the Drone Innovation Partnership Discusses Ireland’s Potential for Advanced Air Mobility (AAM)
In a recent podcast, Veronica Sesoko, leading the Drone Innovation Partnership, explored Ireland's prospects in the realm of Advanced Air Mobility. She discussed ongoing initiatives to integrate drone technology into urban environments, focusing on addressing challenges such as public acceptance, safety regulations, and the development of operational frameworks. Sesoko emphasised the collaborative efforts between government agencies, academia, and industry stakeholders to position Ireland as a leader in AAM
.
Acumen's Take:
Ireland's proactive approach to embracing AAM presents significant opportunities for innovation in urban transportation. For aviation industry stakeholders, this development opens avenues for investment in drone technology, infrastructure, and related services. Engaging in public-private partnerships and contributing to the establishment of regulatory frameworks will be crucial in shaping the future landscape of urban air mobility in Ireland.
World Star Aviation Completes Inaugural GEnx-1B Sale and Leaseback Transaction
World Star Aviation announced the successful completion of its first sale and leaseback transaction involving a GEnx-1B engine. This strategic move marks the company's entry into the latest generation of engine types, expanding its portfolio and offering customised financing solutions to airline partners.
Acumen's Take:
The completion of this transaction signifies a notable shift towards modern, fuel-efficient engine assets in the aviation leasing market. For asset management firms, diversifying portfolios to include next-generation engines like the GEnx-1B can enhance market competitiveness. Offering tailored financing solutions through sale and leaseback arrangements provides airlines with the flexibility to manage capital expenditures while maintaining access to advanced technologies.
25,000 Attend Holiday World Show Dublin at RDS Simmonscourt
The Holiday World Show, held at Dublin's RDS Simmonscourt, attracted approximately 25,000 attendees. Exhibitors from various sectors of the travel and tourism industry showcased destinations, travel packages, and related services to a diverse audience. The high turnout reflects the public's robust interest in travel and tourism.
Acumen's Take:
The substantial attendance at the Holiday World Show indicates a strong resurgence in consumer confidence and interest in travel. For the aviation industry, this trend suggests a potential increase in passenger demand, presenting opportunities for airlines to expand route offerings and enhance service portfolios. Engaging with consumers at such events can provide valuable insights into emerging travel preferences, aiding in strategic planning and marketing efforts.
33.3 Million Passengers Passed Through Dublin Airport's Terminals in 2024
Dublin Airport reported that 33.3 million passengers used its terminals in 2024, a 4% increase from 2023. This growth occurred despite efforts by the airport authority to manage demand, including the removal of airline incentives and initiatives to redistribute capacity to other airports. The airport's operational capacity demonstrated its ability to handle over 100,000 passengers on 171 days throughout the year.
Acumen's Take:
The increase in passenger numbers at Dublin Airport underscores the resilience and continued growth of air travel demand in the region. For aviation stakeholders, this trend highlights the importance of strategic capacity planning and infrastructure investment to accommodate future growth. Balancing demand management with service quality will be crucial in maintaining operational efficiency and passenger satisfaction.
Tweet Picks
X Post Picks:
@emirates We’ll be resuming services to Beirut, Lebanon and Baghdad, Iraq with daily flights, from 1 February 2025.
@eoghancorry The US reported 494,344 visits from Ireland in 2024, up 8.6pc on last year – down 5pc on pre pandemic.
@jonostrower Boeing has likely delivered the last 777-300ER. This report from @theaircurrent is as much a news story as it is an appreciation of the best selling widebody aircraft of all time.
@martinjoconnell "Make Flying Great Again" - O'Leary knows his audience!.
Video Picks
Air travel in India remains 'largely unpenetrated': IndiGo CEO
In a recent interview, IndiGo CEO Pieter Elbers discussed the airline's third-quarter results, emphasising that both domestic and international demand for air travel in India remains robust. He noted that the market is "largely unpenetrated," indicating significant opportunities for growth. Elbers also highlighted IndiGo's plans to expand its network and enhance connectivity to meet this rising demand.
Acumen's Take
India's aviation sector presents substantial growth potential, driven by a burgeoning middle class and increasing urbanisation. IndiGo's strategic focus on expanding its network aligns with these market dynamics. However, the airline must navigate challenges such as infrastructure constraints and regulatory complexities. A comprehensive approach that includes fleet modernisation, investment in technology, and partnerships with regional carriers could position IndiGo to capitalise effectively on the untapped market.
Southwest Airlines CEO Bob Jordan Discusses Q4 Results
Southwest Airlines CEO Bob Jordan recently discussed the company's fourth-quarter performance, highlighting a significant profit driven by strong holiday travel demand. The airline reported a net income of $261 million, or 42 cents per share, compared to a net loss of $252 million the previous year. Operating revenue increased to $6.93 billion from $6.82 billion. Jordan emphasised the company's faster-than-expected improvements from tactical initiatives and anticipated continued strong demand and a favourable industry backdrop.
Acumen's Take
Southwest Airlines' return to profitability underscores the resilience of the domestic travel market and the effectiveness of the airline's operational strategies. The positive financial performance, coupled with a $750 million accelerated share-buyback program, reflects strong cash flow and a commitment to shareholder value. However, the airline must remain vigilant regarding potential challenges, such as rising fuel costs and labour expenses, which could impact future profitability.
United Airlines' Growth Driven by Premium Routes
United Airlines has reported that its recent growth is significantly driven by the expansion of premium routes. The airline has focused on enhancing its international network, particularly in Europe and Asia, and has invested in premium seating and services to attract high-yield passengers. This strategy has contributed to a substantial increase in revenue and market share.
Acumen’s Take
United Airlines' emphasis on premium routes aligns with a broader industry trend of catering to high-yield segments to boost profitability. By investing in premium services and expanding its international network, United is well-positioned to capture demand from business travelers and affluent passengers. However, the airline must balance this strategy with maintaining competitive offerings in the economy segment to ensure a diversified revenue base.
