Leading aviation services company, ACC Aviation, successfully hosted its 17th annual Airline Conference at the Hilton Gatwick, welcoming over 140 industry professionals for a comprehensive exploration of the latest developments, trends, and challenges within the ACMI (Aircraft, Crew, Maintenance, and Insurance) sector. The event underscores ACC Aviation’s ongoing commitment to facilitating constructive discussions among key stakeholders to address the sector’s complex and evolving dynamics.
The conference began with an opening address from ACC Aviation CEO, Phil Mathews, who underscored the importance of this gathering as a cornerstone event for the ACMI industry. Mathews remarked on the value of insights shared at the conference, stating, “The challenges we face today are unprecedented in scope, but so are the opportunities for innovation and collaboration within the ACMI sector. The discussions we engage in here will help set the direction for 2025 and beyond.”
Keynote highlights
The morning sessions featured presentations by industry thought leaders who provided updates on the global aviation market and regional trends. Tony Griffin, Senior Vice President at ASM, presented an aviation market update outlining the impact of global economic conditions on air travel demand and ACMI operations. Griffin noted a marked recovery in global passenger traffic, while also identifying persistent obstacles, such as slower-than-expected returns in business travel. He highlighted the influence of economic stability on demand forecasts, stressing that while passenger capacity has rebounded, certain markets face region-specific challenges that require close attention from ACMI operators.
Dynamic ACMI market insights
Dave Williams, ACC Aviation’s Director of Leasing, delivered a highly anticipated presentation examining the latest trends and emerging issues within the ACMI market. Williams offered a comprehensive breakdown of the sector’s recent growth, emphasising a marked increase in block hours year-to-date compared to the previous year. This growth, Williams explained, has been propelled by strong global passenger demand, coupled with an industry-wide shortage of certain aircraft types due to supply chain constraints. A key takeaway from Williams’s address was the “chaos theory” approach in the ACMI market, where disruptions such as delayed aircraft deliveries and maintenance issues significantly drive demand for ACMI services.
Among the notable challenges Williams outlined was the Pratt & Whitney engine shortage, which has impacted several major airlines, grounding hundreds of aircraft worldwide. This shortage has increased ACMI demand from low-cost carriers, especially in regions like India and Mexico, where regulatory exemptions have allowed for the entry of ACMI providers. Williams pointed to a notable increase in narrow-body aircraft leasing, with the A320 becoming the most popular choice due to its operational efficiency and flexibility.
Panel discussions: ACMI’s role in a volatile supply chain landscape
An afternoon panel brought together senior representatives from air salvage and maintenance, repair, and overhaul (MRO) providers to discuss supply chain bottlenecks and their ripple effects across the aviation industry. Mark Gregory from Air Salvage International and Victoria Goodenough from Magnetic Engines highlighted the ongoing challenges in sourcing aircraft parts and labour, which have delayed fleet maintenance and repair activities. Goodenough discussed Magnetic’s efforts to provide alternative repair solutions, such as quick-turn repairs, that help mitigate prolonged downtimes and ease strain on operators.
In addition to MRO and parts supply issues, the panel tackled the challenges of staffing and training. Both panellists pointed to the shortage of licensed technicians and the rising costs of labour as key constraints in maintaining consistent, high-quality MRO services. ACC Aviation’s Connor Sproat moderated the session, guiding discussions towards potential collaborative solutions and efficiency improvements across the supply chain.
Aircraft Trading and Leasing: Navigating market dynamics
A distinguished panel of aircraft leasing and trading experts, including representatives from Arena Aviation Capital, Doric Partners, World Star Aviation, and Magnetic Leasing, provided valuable insights into current market conditions. Moderated by Zeineb Lassoued, VP Regional MEA at ACC Aviation, the panel highlighted the robust demand for aircraft, noting that lease extensions for aircraft aged 18-20 years are becoming increasingly common, with useful life now extending to 23-25 years. Panellists emphasised the continued strength of both narrow-body and wide-body aircraft values, with the A321neo garnering particular attention due to its operational flexibility. The discussion also touched upon the evolving freighter market, where, despite concerns of oversupply during COVID, demand remains strong, with cargo tonne kilometres up year-on-year. The experts noted that whilst the market remains firmly tilted towards sellers, emerging opportunities exist for new entrants, particularly in the ACMI sector, provided they can navigate the challenges of current lease rates and aircraft availability.
Aviation Legal Panel: Regulatory challenges and contract considerations
A comprehensive legal panel, moderated by Andreas Pericleous, Vice President Business Development at ACC Aviation, brought together leading aviation lawyers to address pressing regulatory challenges facing the aviation sector. The distinguished panel included Josh Romanow and Nancy Fischer, Partners at Pillsbury Law, specialising in U.S. Traffic Rights Licensing/Operations and International Trade & Global Sanctions, respectively, alongside Will Alete and Dan Cowdy, Partners at Norton Rose Fulbright.
Key topics included the implementation export control regulations, particularly surrounding sanctions, which require specific contractual provisions prohibiting re-export to sanctioned countries like Russia and Belarus. The panel explored the implications for aircraft parts and engines, highlighting the complexity of downstream control requirements and the need for precise contractual language.
Additionally, the discussion covered supply chain delays and their contractual ramifications, with particular focus on manufacturer agreements and compensation mechanisms. The panel noted that whilst COVID-related challenges to “hell or high water” clauses have been robustly rejected by English courts, airlines are increasingly approaching contract disputes from alternative angles. The experts also discussed the evolving landscape of aircraft manufacturer delays, observing a trend towards extended grace periods and modified compensation structures in response to ongoing supply chain disruptions.
Networking and industry engagement
In addition to presentations and panel discussions, the ACC Airline Conference provided ample networking opportunities for attendees, enabling them to exchange ideas and foster partnerships. Participants engaged with industry peers and explored opportunities to collaborate on innovative solutions addressing the ACMI sector’s unique challenges.
As the event concluded, Phil Mathews expressed his gratitude to the conference’s sponsors and ACC’s dedicated team, whose efforts made the event possible. He reiterated ACC Aviation’s commitment to continuing this tradition of dialogue and collaboration within the ACMI community, noting that these annual gatherings play a critical role in shaping the future of the aviation sector.
For more information about ACC Aviation and future events, visit www.accaviation.com.
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.
