ACC Aviation, the global aviation services group, ended the year with a strong Q4, fuelled by demand from all corners of its service portfolio.
Thanks to its diversified service portfolio, ACC displayed notable growth during 2022. As operators struggled with capacity issues, ACC’s leasing teams helped airline clients capitalise on the market conditions and grow their footprint. While the economy grew harsher and climbing interest rates threatened financial stability, ACC’s consulting teams helped clients identify opportunities and navigate challenges. And as the floodgates of passenger demand opened, ACC’s charter teams were ready to respond.
Q4 CHARTER ACTIVITY INCLUDED
• World Cup flying schedule for corporates, teams, supporter groups and individual travellers.
• Boeing 777 chartered for a corporate incentive event, transporting guests between Honolulu and a neighbouring island for 700 guests attending a special event.
• Continued demand from airlines as crew delays or AOG situations threatened to impact existing flights. During Q4 the charter team were launching private jets sometimes within 4 hours of first receiving a request to help a commercial carrier trying to protect their schedules.
• A large movement involving 52 separate charter flights spanning just four days flying circa 7,000 passengers into Florida from US Domestic and International locations.
• Supporting corporate clients moving employees between facilities.
• Sports team travel for teams, individual players and HNW clients utilizing our executive jet services.
• ACC Charter teams closed the year with the highest number of new client growth in company history.
CHARTER Q1, 2023 OUTLOOK
Demand for international travel will likely continue, and infrastructure-related challenges will hopefully ease. Pre-pandemic travel patterns appear to be returning, signalling another busy year ahead for charter departments.
Q4 CONSULTING ACTIVITY INCLUDED
• Completion of the repossession transition and placement of a B737-800 on a long-term operating lease to Safair on behalf of a South African financier.
• Remarketing of a B737-300 to a private investor on behalf of a secured lender that was exposed to the bankrupted airline, Tayaran Jet.
• Completion of a valuation assignment covering a portfolio of 55 aircraft on behalf of an aircraft lessor.
• Due diligence assignment for a leading import/export bank covering asset valuation, value and maintenance event forecasting, credit risk, LTV forecasting, and transaction structuring advisory.
• Engagement by an aircraft OEM for analysis of the maintenance cost and intervals of competing aircraft types.
• Completion of several pre-leasing inspections on behalf of a leading European ACMI carrier.
• Engagement by Uzbekistan Airways to perform the remarketing of a portfolio of 18 aircraft assets as part of its fleet renewal strategy.
CONSULTING Q1, 2023 OUTLOOK
Delayed deliveries of new aircraft will lead to higher demand for current-generation aircraft and ACMI leases. While increased interest rates and inflation create a more challenging economic environment, passenger demand and yields are strong and look to remain strong, despite the economic headwinds.
LEASING Q1, 2023 OUTLOOK
As mentioned, supply chain issues remain a challenge across the industry, with airlines likely turning to short-term leases to alleviate the capacity issues. Spurred by 2022’s rush for ACMI capacity, many airlines will begin their contingency planning early.
The leasing team performed over 41,000 block hours in 2022 and sees continued opportunities for further growth in 2023.
About ACC Aviation
Founded in 2002 as an aircraft leasing specialist, ACC Aviation delivers market-leading solutions across aviation consultancy services, ACMI leasing, and air charter. Through an international office network spanning Europe, the Middle East, Africa, North America, and Asia, it provides bespoke aviation solutions to clients across the globe. Its success is built on the strength and depth of its relationships within the aviation industry. ACC Aviation delivers superior solutions to a diverse and growing client base through continued investment in developing and maintaining these partnerships, with a persistent focus on innovation.
The company is backed by YFM Equity Partners and is a Financial Times Top 1000 ranked European company.
Air charter: T: +44 1737 232 230 or +1 954 686 5220
Consulting: T: +971 4 250 0373
ACMI Leasing: T: +44 1737 232 239