While debates range on whether so-called ‘revenge travel’ is over, for IATA, North America remains “the standout region in terms of financial performance.” Its latest forecast states demand in Revenue per Passenger Kilometer (RPK) was 16% higher in 2023 compared to 2022, with a 6.3% year-on-year rise in March 2024.

Amid such a thriving environment, the region is poised to not only profit from revived travel demand but to also serve as a source of aircraft for other regional airlines.

Supply and demand

The strong return of the transatlantic market in 2023 was coupled with a surge in regional and interstate travel. With the upcoming US elections, North America’s aviation growth and profitability may slow in 2024, yet we don’t expect the difference to be significant. Despite rising interest rates and cost-of-living pressures, consumer spending on air travel remains robust.

Set this against widely reported issues with certain airframes and engines, and there is considerable pressure on North American airlines to protect their flying schedules and meet demand. With aircraft out of service for inspections and delivery delays occurring for new planes, we’re seeing older models flying for longer than first anticipated.

While some aircraft types are unavailable, there are opportunities as operators look to fill gaps and explore new ways to meet passenger demand. For example, outside of North America we’re seeing rising interest in larger turboprops such as the ATR 72 series and the Dash 8-400, as well as regional jets to provide essential cross-country connections and open up new point-to-point opportunities.

Supporting global markets

North America has always been a market of significant value but it’s also a prime source of inventory for regional and domestic carriers worldwide. In 2023, Jetcraft Commercial took a notable step by acquiring 19 Dash 8-400s from Horizon Air and placing them with strategically selected customers outside of the US and Canada.

The demand for the Dash 8 stems from its economics and performance – the aircraft’s high speed, flexibility and higher density perfectly meet the needs of developing domestic and regional travel markets, particularly for carriers operating in landlocked countries with hot temperatures or high altitudes.

Despite global uncertainties affecting air travel, North America’s aviation market remains resilient, offering unique opportunities to drive air travel across developing regions. With our global perspective and agile response to market dynamics, Jetcraft Commercial is a strategic partner for airlines looking to transition out a fleet type or capitalize on emerging opportunities.

The current landscape provides ample opportunity for this combination of success and failure. On the one hand, commercial aviation has been forced to contend with significant headwinds over the last few years and the post-Covid recovery remains underway. On the other, in adversity there is opportunity, which is why we’ve seen many new carriers enter the market, including Norse Atlantic Airlines, Canada Jetlines, and Bonza in the past year alone, as well as existing smaller operators such as Provincial Airlines in Canada rapidly expanding to replace legacy carriers who have exited markets.

While the prospects for start-up airlines can be exciting, our experience indicates there are several key considerations that will prove key to success.

Consider the mission

Deciding whether you have the right aircraft for your mission is fundamental to succeeding. An airline’s key routes will determine the aircraft type you should invest in. While regional jet flights saw a big decline during 2022, at Jetcraft Commercial, we were able to support airlines that had identified opportunities and were looking for available aircraft to launch their services.

For example, we worked closely with start-up airline SilkAvia – which was recently launched by Uzbekistan Airports in response to growing demand for domestic travel and to enhance Uzbekistan’s booming tourism sector – to source and place three ATR72-600 turboprops to meet their needs. By acquiring these aircraft from Bangkok Airways, we supported one airline in renewing its fleet and another with its launch.

The power of expertise

While aiding clients through turbulent times is one strength of Jetcraft Commercial’s, another is finding aircraft when demand for particular types is high. Start-up airlines can boost their chances of success by partnering with companies that have insight into the entire market globally, and can identify the aircraft most suitable for their mission.

With the market picking up, now is the perfect time to benefit from this expert advice. The 2023 Dubai Airshow has demonstrated a resurgence, with the Middle East and Southeast Asia showing the highest growth, according to a Boeing forecast. This was underlined by Irish lessor Abelo increasing its ATR order to support demand from Southeast Asia, while airlines are also driving activity in the narrowbody market, with a significant investment by AirBaltic in the A220 regional jet.

As requirements for new aircraft increase, opportunities in the pre-owned market abound. This is where working with a specialist company to source your next turboprop, regional or narrowbody jet is key. Our team can often find aircraft others can’t, drawing on expertise that ensures customers develop a fleet that meets their current and future requirements.

No deal is impossible

Some transactions might appear too difficult for a start-up airline to navigate. At Jetcraft Commercial, we’re uniquely qualified to close even the most complex transactions to support fleet planning – including buying multiple aircraft ahead of selling these to other parties – ensuring buyers gain access to the broadest range of makes and models to best meet their needs.

Our credit lines and financial strength mean we can also support our customers in their aircraft purchases, ensuring cash flow challenges don’t stifle their ambitions.

Ultimately, while launching a successful start-up airline is certainly challenging, it’s possible to soar to new heights with the right expertise and support.