26 Feb 2025
Acumen Daily Aviation Brief - 26th 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
N795CK Boeing 777-F1H | Kalitta Air
The Boeing 777-F1H, with construction number 35610, has been delivered to Kalitta Air at Oscoda on 16th February 2025. The aircraft was previously operated as A6-EFJ under Emirates SkyCargo before being transferred to Kalitta Air’s growing freighter fleet.
Acumen’s Take:
The addition of this Boeing 777F to Kalitta Air’s fleet signals continued expansion in the cargo sector, reflecting the sustained demand for dedicated freighter capacity post-pandemic. The 777F remains a preferred aircraft for long-haul cargo operations due to its efficiency, payload capacity, and reliability.
For lessors and investors, this movement underscores the high secondary-market value of well-maintained freighter aircraft, particularly as e-commerce and global logistics continue to drive demand. Acumen can support stakeholders in asset valuation, fleet transition planning, and strategic leasing options for freighter conversions or secondary market placements.
OE-IAI Airbus A320-232 | Avolon
The Airbus A320-232, with construction number 3071, was ferried from its previous operator VT-IHZ (likely an ex-Indian carrier) to Tianjin, China, on 13th February 2025 under Avolon’s management.
Acumen’s Take:
This ferry flight highlights ongoing aircraft transitions to the Chinese market, which remains a major hub for narrowbody aircraft demand. China’s domestic aviation sector has rebounded strongly, and lessors like Avolon are positioning their assets in regions with high utilization potential.
For investors, this move reinforces the importance of tracking aircraft transitions to emerging markets. Acumen can provide advisory services on lease placement strategies, secondary market demand trends, and asset lifecycle management to ensure optimal returns on aircraft investments.
Global Aviation News
AirBaltic Completes Capital Reduction in Advance of IPO
AirBaltic has successfully completed a capital reduction as a preparatory step for its initial public offering (IPO). This move is aimed at streamlining the airline’s financial structure and improving its attractiveness to potential investors before the planned public listing.
Acumen’s Take:
AirBaltic’s IPO preparation signals confidence in the airline’s long-term strategy and growth prospects. By restructuring its capital, the airline is likely aiming to increase shareholder value and attract institutional investors. This development could also open opportunities for lessors and asset managers, as increased liquidity could allow for fleet expansion or refinancing of existing leases.
Acumen can support investors and lessors by providing market intelligence on AirBaltic’s fleet strategy, potential aircraft acquisition plans post-IPO, and the implications of its public listing on leasing trends in Europe.
Airbus Commits to Hydrogen-Fueled Aircraft by 2035 Despite Five Years of ‘No Progress’
Airbus has reiterated its commitment to developing hydrogen-powered aircraft by 2035, despite facing significant technological and infrastructure challenges over the past five years.
Acumen’s Take:
While Airbus’ commitment to hydrogen aviation represents a significant step towards sustainable air travel, the lack of tangible progress highlights the complexities involved in adopting alternative fuel technologies. Infrastructure readiness, regulatory approvals, and economic feasibility remain key challenges.
For lessors and asset managers, this signals a long-term shift in fleet composition, but hydrogen-powered aircraft are unlikely to impact lease portfolios significantly until at least the 2040s. Acumen can assist stakeholders in assessing investment risks in next-generation aircraft and advising on transitional strategies as airlines work towards decarbonisation.
Boeing Delivers 100th 767-300BCF to SF Airlines
Boeing has officially delivered its 100th 767-300 Boeing Converted Freighter (BCF) to SF Airlines, China’s leading cargo airline. This milestone underscores the strong demand for freighter conversions as the air cargo market continues to expand.
Acumen’s Take:
This delivery highlights the continued dominance of the 767-300BCF in the cargo sector, particularly in the Chinese market, where e-commerce and logistics growth are driving demand for medium-capacity freighters.
For lessors and cargo operators, this trend reinforces the high residual value of converted freighters and the increasing need for flexible leasing arrangements in the cargo sector. Acumen can support stakeholders in evaluating freighter conversion investments, asset lifecycle strategies, and the long-term demand outlook for cargo aircraft.
Bizjet Demand is Up Despite Economic Concerns
Update:
Despite ongoing economic uncertainties, the business jet market continues to experience strong demand, with increasing interest from corporate buyers and high-net-worth individuals.
Acumen’s Take:
The sustained demand for business jets suggests a resilient high-end travel segment, driven by corporate mobility needs and the appeal of private aviation amid commercial travel disruptions.
For lessors and private aviation investors, this trend highlights continued opportunities in premium asset management, with a focus on maintaining high aircraft utilisation and optimising lease structures. Acumen can provide advisory services on business jet fleet management, financing solutions, and emerging investment opportunities in the growing private aviation sector.
Taipei’s EVA Air Reveals New Premium Economy Product on B787-9:
EVA Air has introduced an upgraded premium economy cabin on its Boeing 787-9 fleet, featuring improved seating, enhanced in-flight entertainment, and upgraded passenger amenities.
Acumen’s Take:
EVA Air’s investment in premium economy reflects a growing trend among full-service carriers to optimise cabin configurations and enhance revenue streams from high-yield passengers.
For lessors and airlines, this move highlights the increasing importance of cabin product differentiation in driving profitability, particularly in long-haul markets. Acumen can offer insights into airline fleet interior upgrades, financing strategies for cabin enhancements, and competitive analysis of premium economy trends in the Asia-Pacific market.
Irish Aviation News
Avolon Reports Full-Year Net Income Up 79% with Record Operating Cashflow
Avolon, one of the world’s leading aircraft leasing companies, reported a 79% increase in net income for the full year, alongside record operating cash flow. This reflects strong lease demand and improved financial performance in the post-pandemic recovery period.
Acumen’s Take:
Avolon’s robust financial performance highlights the resilience of the aircraft leasing industry, with increasing airline demand for leased aircraft amid supply chain disruptions at OEMs. Strong lease rates and record cash flow indicate a positive environment for lessors, potentially driving more investment in fleet expansion.
For investors and asset managers, this underscores attractive leasing opportunities in high-demand aircraft types like the A320neo and 737 MAX. Acumen can support stakeholders in assessing market trends, leasing structuring, and evaluating the long-term profitability of leasing portfolios.
Book Review: Aerdogs by Tom Lyons – The Rise of Low-Fare Travel
Aerdogs, a new book by Tom Lyons, chronicles how a small group of Irish entrepreneurs played a pivotal role in the global expansion of low-cost airlines. The book explores their impact on aviation markets and how they shaped the airline industry into what it is today.
Acumen’s Take:
This book is a must-read for aviation professionals, as it provides historical insights into the low-cost revolution, which reshaped airline business models worldwide. The success of Ryanair and other LCCs has influenced aircraft leasing, fleet structuring, and airline strategies.
For Acumen, understanding the evolution of low-cost carriers (LCCs) is crucial for advising clients on narrowbody aircraft leasing trends, secondary market demand, and emerging LCC opportunities in developing markets.
DAE Delivers Boeing 737-800 to Kenya Airways, Marking 20 Years of Partnership
Dubai Aerospace Enterprise (DAE) has delivered a Boeing 737-800 to Kenya Airways, celebrating a 20-year leasing partnership between the two entities. This delivery highlights the continued demand for narrowbody aircraft in Africa.
Acumen’s Take:
The continued partnership between DAE and Kenya Airways reflects the growing importance of aircraft leasing in African aviation. With airlines in emerging markets seeking cost-effective fleet solutions, narrowbody aircraft like the 737-800 remain a preferred choice.
For lessors, this delivery indicates sustained leasing opportunities in fast-growing African aviation markets. Acumen can assist investors and operators in evaluating lease terms, residual values, and long-term demand projections for fleets operating in emerging economies.
German Aviation Lags Behind Recovery – Ryanair Criticises High Costs
Ryanair has sharply criticised high aviation costs in Germany, arguing that these expenses are hindering the country’s aviation recovery compared to other European markets.
Acumen’s Take:
Ryanair’s criticism highlights the significant role of regulatory costs in airline profitability. Germany’s slow recovery compared to other European markets suggests that airport charges, taxes, and operational expenses are key factors affecting airline expansion and leasing demand.
For leasing companies and investors, this development raises concerns about aircraft demand in the German market. Acumen can provide insights into regional leasing trends, advising on better asset allocation strategies in more cost-effective European markets.
Ireland Visits to Turkey Up 20% in First Half of 2024
Tourist arrivals from Ireland to Turkey increased by 20% in the first half of 2024, reflecting a surge in demand for leisure travel between the two countries.
Acumen’s Take:
This increase in travel demand between Ireland and Turkey highlights strong post-pandemic tourism recovery and the potential for increased airline capacity on these routes.
For airlines and lessors, growing demand for flights to Turkey’s leisure destinations suggests opportunities for route expansion and additional fleet deployments. Acumen can assist airlines in fleet planning, capacity analysis, and strategic leasing decisions to capitalise on rising leisure travel demand.
Tweet Picks
X Post Picks:
@FlightGlobal JetBlue's GTF engines off-wing for an average of 360 days amid widespread aircraft groundings.
@IshrionA Dublin (DUB) is now connected to 22 U.S. destinations with LAS, BNA, DTW, and now IND starting over the next months. DUB now has more U.S. routes than AMS/CDG with 21 each but less than LHR and FRA. Capacity is larger to AMS/CDG, but it’s still impressive seeing DUB’s growth.
@SawyerMerritt NEWS: airBaltic, the Latvian airline, has made history by becoming the first European airline to offer free high-speed internet onboard, powered by SpaceX’s @Starlink.CEO: "This is not just an improvement, it is a revolution in air travel."
@SecDuffy I've requested that the Boeing CEO come to D.C. as soon as possible to provide a full accounting of the steps the company is taking to address its quality and safety issues. Following that, I will visit Boeing myself to evaluate firsthand the measures being implemented to ensure its planes meet the highest safety standards.
Video Picks
Drug Use Among Passengers Increasing, Ryanair Boss Says
Ryanair's Chief Executive, Michael O'Leary, has raised concerns about the escalating issue of passengers consuming alcohol in combination with illicit substances before boarding flights. This behaviour has led to a surge in disruptive incidents on board, posing significant challenges for cabin crews and compromising flight safety. O'Leary advocates for stricter regulations, including a two-drink limit at airport bars and mandatory presentation of boarding passes when purchasing alcohol, to mitigate these issues.
Acumen’s Take
The rise in passenger misconduct due to substance abuse presents a multifaceted challenge for the aviation industry. For airlines and lessors, such incidents can lead to increased operational costs, potential damage to aircraft interiors, and heightened safety risks, all of which may affect asset values and insurance premiums. Implementing stricter pre-boarding alcohol policies and enhancing passenger screening processes could mitigate these risks. Acumen can assist airlines and lessors in developing comprehensive risk management strategies, including policy formulation and crew training programs, to address and reduce the impact of passenger-induced disruptions.
From JetBlue to Breeze: David Neeleman’s Aviation Vision
Aviation entrepreneur David Neeleman, renowned for founding multiple airlines, including JetBlue Airways and Azul Brazilian Airlines, has introduced his latest venture, Breeze Airways. Breeze aims to connect underserved city pairs across the United States, focusing on providing affordable, nonstop flights. Neeleman's vision emphasises operational efficiency, customer-centric service, and the utilisation of modern, fuel-efficient aircraft to offer a streamlined travel experience.
Acumen’s Take
Neeleman's approach with Breeze Airways reflects a strategic focus on niche markets that are often overlooked by major carriers. By targeting these routes, Breeze can capitalise on unmet demand, potentially leading to higher load factors and profitability. For lessors and investors, this presents opportunities to engage with airlines that have innovative business models and are poised for growth. Acumen can provide market analysis and advisory services to stakeholders interested in exploring partnerships or investments with carriers like Breeze, ensuring alignment with market trends and demand forecasts.
]ost Hotels CEO James Risoleo: The Higher-End Consumer is 'Very Healthy'
James Risoleo, CEO of Host Hotels & Resorts, has observed that the luxury travel segment remains robust, with high-end consumers demonstrating a strong propensity to spend on premium accommodations and experiences. This trend suggests resilience in the upper-tier market, even amidst broader economic uncertainties.
Acumen’s Take
The sustained strength of the luxury travel market indicates a stable demand for premium services, which can have positive implications for airlines offering first and business-class products. For lessors and asset managers, this trend may influence decisions regarding the configuration and allocation of aircraft to cater to high-end travellers. Acumen can assist in evaluating market data to optimise fleet strategies that align with the preferences of affluent consumers, thereby maximising revenue potential in the premium segment.
