24 Feb 2025
Acumen Daily Aviation Brief - 24th 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 issue explores China’s expanding aviation footprint with a focus on new international routes, fleet acquisitions, and sustainability partnerships. Highlights include Hainan Airlines’ launch of new routes to Japan and Boeing’s collaboration with HPCL to advance sustainable aviation fuel (SAF) production in India.
READ NOW: https://www.acumen.aero/blogs/-3-feb-2025-china-aviation-industry-newsletter
- India Aviation Industry Newsletter: This edition covers the latest developments in India’s rapidly growing aviation sector, including new route launches, fleet expansions, and sustainability initiatives. Key highlights include IndiGo’s domestic network growth and Air India’s international partnerships aimed at enhancing global connectivity.
READ NOW: https://www.acumen.aero/blogs/-4-feb-2025-india-aviation-newsletter
- Irish Aircraft Leasing Newsletter: Stay up-to-date with Ireland’s leading role in global aircraft leasing, featuring major deals and asset management transactions. This edition highlights AerCap’s commitment to fostering future talent through its Women in Aviation Scholarship and notable aircraft transactions involving major Irish leasing firms.
READ NOW: https://www.acumen.aero/blogs/-4-feb-2025-irish-aircraft-leasing-newsletter
- Irish Commercial Aircraft Update: A detailed roundup of recent aircraft deliveries, repositioning, and freighter conversions involving Irish-registered aircraft. Key updates include Aer Lingus expanding its transatlantic fleet and ASL Airlines Ireland boosting its cargo operations with new freighter acquisitions.
READ NOW: https://www.acumen.aero/blogs/-4-feb-2025-irish-commercial-aircraft-update
- North American Aviation Newsletter: Explore the evolving landscape of North American aviation, with a focus on fleet modernisation, cargo operations, and sustainable aviation developments. This issue features Horizon Air’s Embraer E175 acquisition and JetBlue’s 25th-anniversary strategy to strengthen its East Coast leisure network.
READ NOW: https://www.acumen.aero/blogs/-4-feb-2025-north-american-aviation-newsletter
IrishAero News
Beijing Airlines Boeing BBJ Visits Dublin Airport
On 16 February 2025, a Boeing 737-79L (BBJ), registered B-3999 and operated by Beijing Airlines, arrived at Dublin Airport from Munich. The aircraft transported China's Minister of Foreign Affairs, Wang Yi, as part of his European diplomatic tour, which included engagements in the UK and Germany. Beijing Airlines, a VIP charter subsidiary majority-owned by Air China, maintains a fleet comprising three Boeing 737-800s and one Boeing 737-79L (BBJ).
Acumen's Take:
The arrival of Beijing Airlines' BBJ at Dublin Airport underscores the strategic importance of Ireland in international diplomatic relations. Such high-profile visits not only enhance bilateral ties but also highlight Dublin Airport's capability to accommodate specialised aircraft and VIP delegations, reinforcing its status as a key hub in global aviation networks.
Neos Adds EI-RZF Boeing 737-8 MAX to Its Fleet
Italian airline Neos has expanded its fleet with the addition of a Boeing 737-8 MAX, registered EI-RZF (MSN 66466). The aircraft, leased from Aviation Capital Group (ACG), was delivered via a route from Boeing Field to Shannon, arriving on 14 February 2025 before proceeding to Milan Malpensa. This delivery is the first of three Boeing 737-8 MAX aircraft that ACG is set to provide to Neos. Neos currently operates a diverse fleet, including Boeing 737-800s, 737-8s, and 787-9 Dreamliners, serving various domestic and international destinations.
Acumen's Take:
The integration of the Boeing 737-8 MAX into Neos's fleet reflects the airline's commitment to modernising its operations with fuel-efficient aircraft. This strategic move is poised to enhance Neos's operational efficiency and expand its route offerings, aligning with industry trends toward sustainability and cost-effectiveness.
Volotea Introduces Cork-Verona Charter Flight Series
Spanish carrier Volotea has commenced a new weekly charter service connecting Cork Airport to Verona, starting on 25 January 2025. Operated on behalf of Topflight, the service utilises an Airbus A320-200 with a capacity of 180 seats. The aircraft's schedule includes a morning rotation to the City of Derry and an afternoon return to Cork. This initiative caters to the growing demand for winter sports travel, offering passengers convenient access to renowned ski destinations via Verona.
Acumen's Take:
Volotea's introduction of the Cork-Verona charter service signifies a strategic response to the increasing interest in winter sports tourism. By facilitating direct access to prominent ski regions, this route enhances travel convenience for passengers and underscores Cork Airport's role in supporting niche travel markets.
Aircraft Update
ET-BBA Boeing 737-8 | Ethiopian Airlines
The Boeing 737-8 with construction number (c/n) 66151 has been delivered to Ethiopian Airlines. The delivery route followed the standard path from Boeing Field in Seattle, with a stopover in Dublin, before reaching its final destination at Addis Ababa Bole International Airport (ADD) between the 15th and 17th of February 2025.
Acumen’s Take:
Ethiopian Airlines continues to strengthen its position as Africa’s largest and most profitable airline by expanding its Boeing 737 MAX fleet. This addition aligns with the airline’s long-term fleet expansion strategy, especially as demand rebounds post-COVID. For lessors and investors, this delivery reflects Ethiopia’s growing appetite for fuel-efficient narrow-body aircraft, signalling potential future leasing opportunities within the African aviation market. Dublin’s role in this delivery also highlights Ireland’s continued dominance in aircraft leasing and asset transition processes.
G-VKSS Airbus A330-343 | Wamos Air
The Airbus A330-343, bearing construction number (c/n) 1201, was ferried by Wamos Air from Dublin to London Heathrow on the 19th of February 2025. Ferry flights like this often signify repositioning for operational deployment or potential lease handovers.
Acumen’s Take:
Wamos Air, known for its ACMI (Aircraft, Crew, Maintenance, and Insurance) operations, seems to be preparing this A330 for potential short-term leasing agreements or operational readiness for peak travel seasons. Dublin’s involvement hints at the aircraft undergoing either maintenance or lease preparation, reflecting Ireland’s robust role in MRO (Maintenance, Repair, and Overhaul) activities. This movement also signals continued demand for wide-body aircraft in Europe’s charter market, offering lessors valuable insights into seasonal capacity trends.
Global Aviation News
Flydubai Planning Order for 200 Narrowbody Aircraft
Flydubai, a major low-cost carrier based in Dubai, has announced plans to place an order for 200 narrowbody aircraft. This move underscores the airline’s ambitious growth trajectory and its strategy to expand its fleet significantly in response to increasing demand for short- and medium-haul travel.
Acumen’s Take:
This potential order highlights the surging demand for narrowbody aircraft in the Middle East, driven by strong regional traffic recovery and increasing connectivity between secondary markets. The deal could favour Boeing, given Flydubai’s existing Boeing 737 MAX fleet, but Airbus could also be a contender. For lessors and investors, this development represents a future surge in leasing opportunities and signals that Middle Eastern carriers remain committed to aggressive expansion strategies post-pandemic. Additionally, MRO services and spare parts markets are likely to see corresponding growth in the region.
GOAL Aircraft Leasing Delivers airBaltic’s 50th Airbus A220-300
GOAL Aircraft Leasing has successfully delivered airBaltic’s 50th Airbus A220-300, a milestone that reflects both airBaltic’s focus on fleet modernisation and GOAL’s strategic leasing capabilities.
Acumen’s Take:
This delivery solidifies airBaltic’s position as a leading operator of the A220-300, underlining the aircraft’s growing popularity due to its fuel efficiency and operational versatility. For lessors, this marks an important trend in the narrowbody market—operators are increasingly opting for modern, fuel-efficient aircraft to reduce operational costs and meet sustainability targets. For Acumen, this highlights an opportunity to advise clients on fleet renewals involving next-generation narrowbody aircraft, particularly in the European market, where environmental regulations are tightening.
Travelport to Add NDC Content from Finnair to GDS Offering
Travelport has announced the integration of New Distribution Capability (NDC) content from Finnair into its global distribution system (GDS). This step will allow travel agents to access a wider range of personalised offers and ancillary services directly from Finnair.
Acumen’s Take:
The adoption of NDC standards is transforming airline distribution by enabling more dynamic pricing and personalised offers. Travelport and Finnair's move signals broader industry adoption of NDC, particularly in Europe. For Acumen’s clients, especially lessors and asset managers, the shift to NDC will influence revenue models and could necessitate adjustments in aircraft valuations based on enhanced revenue potential through ancillary services. Additionally, this reflects growing technological integration within the aviation ecosystem, an area where Acumen’s digital asset management solutions can offer valuable support.
Willis Lease Finance Corporation Exercises Options for 30 CFM LEAP Engines
Willis Lease Finance Corporation has exercised its options for 30 additional CFM LEAP engines, which are primarily used on the Boeing 737 MAX and Airbus A320neo family of aircraft. This move reflects the growing demand for efficient engines to support global fleet expansion and replacement programmes.
Acumen’s Take:
This decision highlights the rising importance of fuel-efficient engines, especially in the face of rising fuel prices and stricter emissions regulations. For lessors and airlines, the CFM LEAP engine’s popularity reinforces the trend toward next-generation aircraft powered by more sustainable propulsion systems. Acumen could leverage this trend by offering advisory services on engine leasing strategies and residual value risk assessments, particularly as the market shifts towards green aviation initiatives.
Horizon Air to Import 6 Embraer Aircraft with R$900 Million from BNDES
Horizon Air has secured R$900 million in funding from Brazil’s National Bank for Economic and Social Development (BNDES) to facilitate the import of six Embraer aircraft. This move will enhance Horizon Air’s regional connectivity while supporting Brazil’s domestic aviation manufacturing sector.
Acumen’s Take:
This development signals strong government backing for Embraer’s regional aircraft and reflects Brazil’s efforts to boost its domestic aerospace industry. For lessors and asset managers, it highlights an opportunity to expand into the growing South American regional aviation market. Acumen could play a role in supporting fleet transitions, advising on regional market potential, and facilitating partnerships between lessors and emerging regional carriers like Horizon Air. Additionally, this investment showcases the increasing importance of regional jets in strengthening connectivity within developing economies.
Irish Aviation News
Lanzarote Ireland Network Celebrates Tourism Links at Mansion House Event
The Lanzarote Ireland Network recently hosted an event at the Mansion House in Dublin, celebrating strong tourism ties between Ireland and Lanzarote. This event aimed to promote greater tourism collaboration and cultural exchange between the two regions.
Acumen’s Take:
The strengthening of tourism links between Ireland and Lanzarote reflects the growing importance of regional partnerships in the post-pandemic travel recovery phase. This partnership could result in increased demand for seasonal flights, which presents opportunities for airlines, lessors, and aircraft operators to explore short-term lease agreements or increased capacity allocations. Acumen could offer advisory services on capacity planning and seasonal leasing strategies for airlines looking to capitalise on this growing tourism demand.
Nigeria Hails Dublin Breakthrough in Improved Access to Leasing Contracts
Nigeria has commended Dublin for improving access to aircraft leasing contracts, signalling a potential boost in collaboration between Irish lessors and Nigerian airlines. This development is expected to facilitate smoother leasing arrangements and better financing terms for Nigerian carriers.
Acumen’s Take:
This breakthrough is significant for both the Irish and Nigerian aviation sectors. It strengthens Dublin’s position as a global hub for aircraft leasing while opening up new opportunities for lessors targeting Africa’s rapidly growing aviation market. For Acumen, this presents an opportunity to provide consultancy and advisory services tailored for emerging markets like Nigeria, assisting airlines in navigating leasing contracts while supporting lessors in assessing risk and market viability in West Africa.
‘No Increased Charges’ – Michael O’Leary Proposes Alternative to New Lisbon Airport
Ryanair CEO Michael O’Leary has proposed an alternative to the construction of a new Lisbon airport, advocating for an expansion of existing facilities without increasing passenger charges. O’Leary’s proposal aims to address the growing capacity challenges without additional financial burdens on passengers.
Acumen’s Take:
O’Leary’s proposal underscores a growing concern among low-cost carriers regarding rising operational costs associated with airport expansions. For airlines, especially those operating on slim margins, higher airport charges can undermine profitability. Acumen could offer strategic advisory services for airlines and investors evaluating the financial impact of infrastructure expansion on lease rates and operational costs. Additionally, airport development plans could influence aircraft placement strategies for lessors seeking to maximise asset utilisation in competitive markets.
Nurturing Busy US-Irish Tourism in Both Directions
The tourism relationship between the United States and Ireland remains robust, with increasing travel volumes in both directions. This growth is driven by strong cultural ties, favourable visa policies, and an increase in direct flight options between major cities.
Acumen’s Take:
The rising demand for transatlantic travel is an important indicator for airlines and lessors to increase capacity on these profitable routes. For Acumen, this trend offers an opportunity to support airline clients in optimising their fleet deployment for high-demand transatlantic routes. Additionally, the increase in US-Ireland tourism highlights potential growth in leasing opportunities for wide-body aircraft and a need for more flexible short-term leasing arrangements during peak travel seasons.
Ryanair Again Criticises Berlin’s Night Flight Ban
Ryanair has once again strongly criticised Berlin’s night flight ban, arguing that the restriction limits operational flexibility and negatively impacts low-cost carriers’ ability to offer competitive fares.
Acumen’s Take:
Restrictions like Berlin’s night flight ban pose operational challenges for airlines, particularly low-cost carriers that rely on high aircraft utilisation rates to maintain profitability. For lessors, such regulatory hurdles can affect asset deployment and utilisation, potentially influencing lease terms and asset values. Acumen could provide market intelligence and regulatory analysis for clients navigating operational restrictions in European markets, ensuring more informed asset placement strategies and risk assessments.
Tweet Picks
X Post Picks:
@Airbus Another key milestone for the world's newest single-aisle! The Airbus #A321XLR powered by Pratt & Whitney GTF engines just received its @EASA type certification.
@aviator_aero ACCC proposes to authorise Virgin Australia and Qatar Airways integrated
alliance.
@AviationWeek The Trump administration’s proposal of tariffs and the potential of reciprocating tariffs in response could have “an enormous impact with many unintended consequences” on the business aviation industry, the General Aviation Manufacturers Association (GAMA) says.
@businessposthq Continued uncertainty about Dublin Airport’s capacity is “significantly unhelpful” Kenny Jacobs, chief executive of DAA, has said.
Video Picks
A Big Deal and a Big Drop for WestJet
WestJet has announced the establishment of a new aircraft engine repair and testing facility in Calgary, aiming to enhance its maintenance capabilities and operational efficiency. Concurrently, the airline is experiencing a decline in passenger demand for flights to the U.S., leading to a reduction in transborder services.
Acumen’s Take
The investment in an in-house engine repair and testing facility signifies WestJet's commitment to bolstering its technical operations, potentially reducing maintenance costs and turnaround times. However, the downturn in U.S.-bound travel demand presents challenges. For lessors and investors, this scenario underscores the importance of flexible fleet management and the ability to adapt to shifting market demands. Acumen can provide strategic guidance on asset allocation and utilisation to navigate such fluctuations effectively.
Airline Stocks with Strong Long-Term Prospects
Citi stock analyst Stephen Trent has identified certain airline stocks that he believes are undervalued and possess strong long-term growth potential. His analysis suggests that these airlines are well-positioned to capitalise on market recovery and future demand.
Acumen’s Take:
The identification of undervalued airline stocks with promising long-term prospects indicates a positive outlook for the aviation sector. For investors and stakeholders, this presents opportunities to engage with carriers poised for growth. Acumen can assist clients in evaluating investment opportunities, conducting due diligence, and understanding market dynamics to make informed decisions in the evolving aviation landscape.
Australian Airports Association (AAA) CEO Simon Westaway on International Travel Resumption
Simon Westaway, CEO of the Australian Airports Association, discussed the need for a clear roadmap to resume international travel. He emphasised the importance of government collaboration and strategic planning to revitalise the aviation industry and support economic recovery.
Acumen’s Take
The call for a structured plan to restart international travel highlights the critical role of coordinated efforts between industry stakeholders and government bodies. Understanding regulatory developments and preparing for operational scale-up is essential for airlines, lessors, and service providers. Acumen offers expertise in navigating regulatory landscapes, strategic planning, and operational readiness to support clients during this transitional phase.
