The flight of an Avia Solutions Group–owned airline: how a Lithuanian aviation group Is conquering the world

In just eight years, revenues soared from USD 80 million to USD 530 million, the fleet expanded to 55 aircraft, and the company built a global team of 1,800 aviation professionals. Although Avion Express CEO Darius Kajokas, whose airline belongs to Avia Solutions Group, calls this only “the beginning of the journey”, it is already clear that the company’s growth is among the most impressive in Lithuanian aviation history.

A business mission: managing seasonality

“An airline for airlines” – this is how the head of Avion Express informally describes his company. The airline does not compete for travellers with discounts or cheap tickets, because its clients are not passengers but other airlines and carriers. Avion Express operates flights across five continents, and its main differentiator is helping other airlines manage passenger flows affected by seasonal demand.

“Our home market is Europe, where the aviation summer season runs from April to October. Typically, local airlines operate at a loss in winter and earn most of their revenue and profit in summer. Their main challenge during peak season is a lack of aircraft. They may not have enough capacity to test new routes or increase frequency. This applies to both small carriers and the largest airlines on the continent,” says Kajokas.

In the aviation world, the services his company provides fall under the acronym ACMI (Aircraft, Crew, Maintenance, and Insurance). The model is based on short-term aircraft leasing (usually up to one year), along with crew, maintenance and insurance. ACMI companies aim to use their fleets as efficiently as possible, relocating aircraft to other markets when demand in Europe drops.

This is why Avion Express has gradually expanded into three non-European markets in recent years: Brazil, Mexico and the Philippines – all countries where seasonality runs opposite to Europe’s. However, each market differs in its business environment and legal framework, so the company’s strategy is adapted accordingly.

Brazil: a continent within a continent with huge potential

“Brazil is larger than all EU countries combined. It could practically be called a continent within a continent. Its aviation market is impressive too – more than 100 million passengers are served annually. Analysts see enormous growth potential here: while in Europe and the US the average is 2.5 flights per person per year, in Brazil the number is five times lower,” Kajokas explains.

According to him, the Brazilian aviation market is relatively closed, and the country is reluctant to admit foreign aviation businesses. However, once a company does enter and secures the necessary permits, it gains a strategic advantage over competitors still facing regulatory hurdles.

“We aimed to be seen as a ‘local player’, and in 2024 we obtained an Air Operator Certificate from the Brazilian Civil Aviation Authority. Over time, we built a strong local team made up of specialists and managers who know the market inside out. And nothing shows that we’ve become truly local more than the fact that we fly football teams. In Brazil, football is an even bigger religion than basketball is in Lithuania,” Kajokas remarks.

One of the biggest challenges Brazilian airlines face is currency fluctuations. Revenues come in Brazilian reals, but aircraft are purchased from manufacturers in US dollars. Since aircraft are ordered years in advance, a drop in the real’s exchange rate can cause major losses.

“The ACMI model offers local airlines a safe alternative – renting additional aircraft during seasonal peaks without the large financial investments required for ownership,” Kajokas explains.

Mexico: success depends on working with local pilots

Mexico is another country in which Avion Express sees strong long-term prospects. One of the key factors long hindering foreign aviation companies was strict regulation allowing only Mexican citizens to work as pilots. But a window of opportunity opened a couple of years ago when “Viva Aerobus” – one of the country’s three major carriers – faced problems with Pratt & Whitney engine failures.

“We received special permission to operate flights. But we wanted a cooperation format that would not only help the affected airline but also its pilots. We supplied aircraft and made it possible for Viva Aerobus pilots to fly them. This allowed them to keep their jobs even when their own airline’s aircraft were grounded due to technical issues,” Kajokas says.

This partnership has continued for two and a half years, and recently Avion Express signed a cooperation agreement with the country’s second-largest carrier, Volaris.

Southeast Asia – a priority for both Avion Express and the entire group

According to Boeing, Southeast Asia is the fastest-growing aviation market in the world, projected to expand by 7.2% annually over the next two decades. Avia Solutions Group has already been pursuing targeted expansion in the region for several years. FL Technics services aircraft in local hangars, BAA Training trains pilots, and ACMI airlines are developing operations in Thailand and Malaysia.

Avion Express also has ambitious plans in Southeast Asia and has already worked with carriers in Cambodia, Vietnam and Thailand.

“In Asia, our business model is still a novelty. One of our current tasks is educating the market, engaging with airline representatives and explaining the value we bring. Fortunately, the numbers are on our side – airlines that strategically use ACMI can increase their profitability by 2–3%,” Kajokas notes.

The Avia Solutions Group effect: network, support and professionalism

The expansion of Avion Express across five continents is part of the wider strategy of Avia Solutions Group, a conglomerate encompassing hundreds of companies worldwide. Kajokas says that although healthy competition exists between group companies – especially those offering similar services – cooperation and mutual support are even stronger.

“Every week there’s a meeting that brings together the heads of the group’s key companies. We discuss essential business topics. Since we’re spread worldwide, for some the meeting is at 10 p.m., for others early in the morning. These discussions really make you feel part of a truly global community,” Kajokas says.

Within the group, “synergy” is not just a buzzword – it operates in practice. For example, Avion Express established its own Airbus A320neo simulator at the BAA Training base for its cadet pilots. Working with flight brokers Chapman Freeborn, the airline has carried out multiple projects supporting the UN World Food Programme’s humanitarian missions. ACMI airlines within the group can also temporarily transfer aircraft among themselves when needed to fulfil higher flight volumes agreed with clients.

Vilnius as the company’s “brain centre”

Although Avion Express operates on five continents, its “brain centre” is based in Vilnius, where staff numbers are steadily growing. In 2021, the office employed just 130 people; today it has over 460. Counting pilots, crew and mechanics working in different countries, the company brings together 1,800 employees worldwide.

Highlighting the benefits of an international workforce, Kajokas notes that interacting with different cultures and various organisational and managerial styles enriches every professional.

“The Vilnius office is incredibly diverse – not only Lithuanians, but Spaniards, Italians, Dutch, Ukrainians, Poles, Colombians, Filipinos and people from many other nationalities work here. Aviation is an international field, but I believe this aspect is even stronger in our company than elsewhere. It’s one of the factors that helps us grow every day,” Kajokas says.