SmartLynx Airlines

SMARTLYNX AIRLINES

PREPPED TO POUNCE ON NEW OPPORTUNITIES

powered by Inside Industry

want an article created? insideindustry.com

apply here

SMARTLYNX AIRLINES

I

PROFILE

SmartLynx Airlines continues to go from strength to strength as it plots a path across the skies. To meet growing demand from European and overseas markets, the company has recently announced a fleet expansion, including two Boeing 737 MAX 8 aircraft. CEO Zygimantas Surintas outlined to Andy Probert how the company is setting out for new horizons.

S

martLynx Airlines is bucking the trend in a global airline industry that is struggling to find its feet, wrought mainly by the impact of Covid-19. An expanded fleet, new business wins, a new cargo division and line maintenance centre clearly indicate the airline continues to be a soaraway success in this highly competitive market.

30 years since it was founded, the Latvian headquartered airline, with subsidiaries in Estonia and Malta, specialises in offering full lease aircraft-crew-maintenance-insurance (ACMI) services.

In 2019, its fleet stood at 24, with A320s and A321s covering mainly tourist flight operations in Europe, Asia,

and Africa. Since then, SmartLynx CEO Zygimantas Surintas and his team have remained laser-focused on advancing the business.

“In 2021, the company decided on a very aggressive stance on growth,” confirmed Mr Surintas. “We began the year with just 12 airplanes, but grew the fleet to 36 by the end of 2021, and most were flying during that period. Our anticipation is to double our fleet strength, culminating with 65 leased planes by the end of 2022.

“Our strategy is that we believe in the market, and we believed business would recover, particularly in Europe where it has responded extremely well.”

SMARTLYNX AIRLINES

I

PROFILE

Expanded, diversified portfolio He elaborated: “As a result of the pandemic, we have diversified from one business line to three: passenger narrow-body, passenger long-haul, and cargo narrow-body/long-haul fleets.

“The crisis has also given us an opportunity to introduce a new type of airplane in the narrow-body fleet, with the addition of our first Boeing 737 MAX. For me, the company direction was ‘Let’s not waste this crisis, let’s use it’, and I believe my team did this very well.”

The company’s fleet now includes six long-haul modified planes flying for the cargo division and two Airbus A321 freighters, while the rest are narrow-body Airbus 320/21s on passenger operations.

“Within 2022, we may consider further additions to the fleet with the new generation A330 freighters,” Mr Surintas revealed.

In 2021, SmartLynx took on an extra five Airbus A330 Zero LOPA aircraft to meet the growing market demand for long-haul cargo ops. With these modified aircraft, the airline can transport cargo shipments such as vaccines and medical supplies.

Earlier in 2021, SmartLynx Malta began supporting the Express Division of Deutsche Post DHL Group with two Airbus A321 freighters, aiding them to meet the increasing demand for express cargo transportation worldwide. Bases in Saarbrücken, Germany, and Basel, Switzerland, were opened. The company operated on behalf of TUI Deutschland, providing full-charter flights to tourist destinations around the Mediterranean and Canary Islands.

4

Inside Industry

Technical additions “We were delighted to partner with the likes of DHL, Volotea, and Royal Air Maroc and provide them with exceptional passenger and cargo ACMI services,” acknowledged Mr Surintas. “The fact that such esteemed companies choose to work with us proves that our professionalism and expertise are valued and respected.”

In October 2021, SmartLynx partnered with FTI GROUP, the third-largest tour operator in Europe, for an exciting non-stop connection from Berlin to Dubai.

Inside Industry

5

SMARTLYNX AIRLINES

I

PROFILE

Besides improving its fleet and services, SmartLynx has grown in size, recruiting over 80 people for office teams in Riga, Tallinn, and Malta. It recently introduced a new Maintenance Control Centre in Malta with EASA Licensed Type rated A320/A330 engineers.

The company is also on the way to beginning operations with SmartLynx Technik. “Initial works to make this new Part 145 SLX Line Maintenance Organisation a reality has begun,” said Mr Surintas. “We foresee having a total of ten SmartLynx Technik stations across Europe within the next two years.”

Expansion has continued into 2022, with SmartLynx increasing its cargo fleet strength, adding two more A321Fs with plans for further additions.

Both A321Fs are leased to SmartLynx by entities managed by Cross Ocean Partners. Precision Conversions undertook the passenger to freighter conversions. Both will support DHL’s European network, and come in tandem with further reducing DHL’s CO2 emissions with the introduction of the most fuel-efficient narrowbody freighter aircraft in its class.

The new technically advanced narrow-body A321F offers additional capacity with the lower deck automated cargo loading system to meet the increasing demand for express cargo transportation. It also delivers the lightest airframe and has been designed and configured for optimised freight operations, maximum revenue load, increased profitability, and maximum fuel efficiency.

Mr Surintas commented: “The additional A321Fs underline our commitment to the future, focused on cleaner, environmentally conscious and sustainable air freight transport. We have the A321Fs for five years and expect to have an extra 20 A321Fs by the end of 2023. It is a critical strategic element for the company.”

6

Inside Industry

With close to 300 office-based people and over 1,800 crew personnel, representing more than 40 nationalities, Mr Surintas said SmartLynx would be among Europe’s top 10 flight operators by the end of 2022.

SmartLynx was founded as Latcharter Airlines in 1992: commencing operations with two leased TU-134B aircraft, it was the first airline to undertake package holidays from Riga. Lofleidir Icelandic acquired the airline in 2006. The SmartLynx brand was adopted in 2008 before a management buyout in 2012.

Four years later, a Netherlands-based investment fund became the owner with aims to enlarge the fleet and expand its operations worldwide. SmartLynx is a family member of Avia Solutions Group – a leading global aerospace services group with 100 offices and production stations providing aviation services and solutions globally.

SmartLynx’s passenger numbers have grown from 1.9 million in 2016 to 3.5 million by the end of 2019. Mr Surintas predicted 2022’s figure would hit about 5% below that peak figure.

Under Mr Surintas’ guidance the company has continued a steady global expansion, which in 2022 saw SmartLynx announce the procurement of a new client, Nigerian airline, Air Peace – Nigeria and West Africa’s largest airline.

Initially damp leasing two A320s based in Lagos until May 2022, SmartLynx is now flying five aircraft for Air Peace. The partnership also confirms SmartLynx’s return to Africa where it has operated since 2007.

He added: “Another important commitment for us, and one which is backed up by our signing of the EASA Covid Charter, is to maintain and continuously improve safer flying methods.”

This has since followed with the opening of a new competence and innovation centre in Vilnius, Lithuania. The addition of the new location will enable the company to better manage its growing operations.

New opportunities Mr Surintas continued: “As we are becoming the largest airline in the Baltics. Our strategy is to grow our investments and extend our business into different continents in the next two years, strengthen our long-haul division, reach all our key milestones, and increase market share.

“We believe the European and Asian markets will show strong recovery, and we expect up to 900 airplanes will leave the longhaul markets. ACMI will certainly become a very important solution in this kind of market.”

In confirming its aggressive approach, SmartLynx has agreed with SMBC Aviation Capital to lease its first two Boeing 737 MAX 8 aircraft, to meet growing demand from European and overseas markets.

He said: “The most exciting part for our customers will certainly be the new destinations that are now in range. However,

cutting fuel consumption, lowering noise and CO2 emissions is no less important. The additions of the latest generation aircraft mean significant service improvements and unmatched technical reliability across all markets.

“As SmartLynx continues to modernise its fleet, there’s no doubt the Boeing 737 MAX 8 is the right aircraft for us, and we were pleased to work with SMBC to make it happen. These aircraft will allow us to ensure even better-quality service and unmatched technical reliability.”

Mr Surintas commented: “The past five years of success have enabled SmartLynx to navigate the pandemic. Our reputation, safety, reliability, as well as our transparency and loyalty to clients has stood us in good stead for the long-term.”

As much as SmartLynx will by its nature pounce on any new opportunities, Mr Surintas ominously warned: “While the aviation industry will remain intensely competitive and tough, especially the European market where there have not been many bankruptcies yet, I expect there to be a lot of blood spilt in the next 24 months.” n

Inside Industry

7