ACMI (Aircraft, Crew, Maintenance, Insurance) has been a frequent topic in Latvian media this year. In Latvia, attention stems partly from the focus on Latvia's national airline and its development plans. On the Baltic level, a key player and ambassador of ACMI has been Avia Solutions Group – the fastest growing ACMI provider globally. However, this is just the tip of the iceberg. Few actually realize that the Baltic region plays a significant role in the global ACMI market.  

Leading Baltic airlines operate a fleet of over 220 aircraft, most of which serve the B2B (business-to-business) segment by flying for other airlines. Europe is considered the region with the most significant number of registered ACMI companies, but when looking closer, many of these companies are based specifically in the Baltics. Overcoming economic and geopolitical turbulence, Baltic ACMI airlines have adapted to market needs and are now a critical capacity source for many leading global carriers.  

From emergency solutions to long-term strategy  

Initially, ACMI services were used as ad hoc solutions when airlines faced technical challenges preventing them from operating scheduled flights with their fleet. However, ACMI solutions are increasingly becoming part of airlines' long-term strategies. A key reason for this shift includes technical issues with P&W engines, grounding hundreds of aircraft worldwide, and the pandemic, which forced airlines to optimize fleets and staff. As demand returns to pre-pandemic levels, ACMI helps fill the capacity gap.  

The Baltic region's potential  

ACMI is more than just metal. The fleet of over 220 aircraft is operated by around 1,900 pilots and an almost equal number of crew members from around the globe. Thousands of highly skilled aviation professionals are employed in the Baltic region, including engineers, technicians, flight operations staff, ground handlers, flight dispatchers, and administrative personnel. This talent pool is a key reason why various airlines are opening offices in Latvia.  

Highly qualified specialists are also attracted from abroad. For instance, at SmartLynx alone, approximately 120 specialists from different countries work in the HQ in Latvia. This remarkable figure is a valuable resource for a region with fewer than six million residents.  

Global estimates suggest that the aviation market value could reach €317 billion this year, with Europe accounting for about a fifth (€67.81 billion) of this figure, and the Baltic region being a significant part of it. The ACMI market in Europe is expected to grow by an average of 7-9% annually over the next six years. This represents stable long-term growth and a realistic opportunity for Baltic airlines to be the main driving force behind this growth.  

Creating conditions for industry growth  

A targeted national aviation development strategy and support from governments and municipalities for the private aviation sector can be crucial for the industry's further development in the region.  

Some countries have made aviation a priority development sector by implementing supportive legislation, streamlined processes, and tax incentives, transforming themselves into regional aviation hubs. Malta is a prime example, increasing the number of locally registered aircraft from 180 to over 900 in just ten years, with many leading European airlines and aviation service providers establishing offices there.  

Time moves on, and the aviation industry evolves. Aircraft leasing is no longer a seasonal profit venture but a consistent support mechanism for airlines worldwide to ensure necessary capacity. ACMI should be viewed as a promising and stable aviation business niche for the Baltic aviation industry. The Baltic region is a strong regional player in the ACMI market, and its business potential is far from realized. Many resources are already in place, and with strategic collaboration and clear goals from government and public sector partners, we can make significant progress in becoming the ACMI hub not only in Europe but globally.