How do APAC Airlines Manage Seasonal Travel Demand?

So how can airlines contend with such unpredictable market conditions, where seasons witness huge fluctuations in passenger demand? ACMI leasing (Aircraft, Crew, Maintenance, and Insurance) is a flexible solution in the commercial aviation industry that allows airlines to expand and reduce their fleets without the financial strain of outright ownership.

Airlines must be ready to meet demand without overcommitting to costly long-term investments, which is why ACMI leasing provides the perfect balance, offering scalability, cost efficiency, and reliability when airlines need it most.

What is ACMI leasing and why it’s ideal for airlines in APAC?

ACMI leasing might sound complex, but at its core, it’s a simple, effective way for airlines to add aircraft to their fleets without the burden of ownership. When an airline leases an aircraft under an ACMI agreement, it doesn’t just get the plane, but it gets everything needed to operate that aircraft, including trained crew, full maintenance support, and comprehensive insurance. The aircraft are often ‘white label’ and can branded and fitted out to integrate into an airline’s fleet. Cabin crews are also trained in the customs of the lessee airline and will also wear the traditional uniform too.

This model differs from dry leasing, where airlines only lease the aircraft and have to source their own pilots and maintenance teams. ACMI, in contrast, provides a comprehensive 360-degree solution, making it ideal for airlines that need extra capacity for a set period of time without the long-term financial commitment.

Why ACMI works so well for APAC airlines?

One of the biggest hurdles for airlines in APAC is the region’s extreme seasonality. Whether it’s the influx of tourists for Japan’s cherry blossom festivals or the rush of travelers heading to Southeast Asia’s tropical beaches in winter, demand spikes can put enormous pressure on airlines. ACMI leasing helps airlines adapt quickly, ensuring they have the right number of aircraft without overspending during off-peak months.

Challenges for APAC Airlines

The APAC region is home to some of the world’s most vibrant and varied travel destinations, each experiencing its own peak seasons.

Japan’s Cherry Blossom Season (March-April) attracts thousands of international tourists to major cities such as Tokyo and Kyoto to witness the iconic blossoms in full bloom. Similarly, Southeast Asia’s holiday season (December-February) sees a huge increase in visitors to Thailand, Indonesia, and the Philippines who are escaping colder climates in their native homelands. Airlines must also juggle Australia’s dual peak seasons, which span winter sports travel and summer beach vacations, requiring flexible fleet management.

What are the struggles airlines face during these peaks?

There are three key issues that airlines must contend with during peak seasons.

1. Not enough aircraft: Seasonal spikes can lead to under-capacity, resulting in missed revenue opportunities.
2. Overbooking issues: Demand fluctuations can make it difficult for airlines to manage passenger loads efficiently.
3. Increased maintenance needs: High aircraft utilization means more frequent wear and tear, leading to unexpected repair costs.

ACMI leasing allows airlines to increase capacity when demand surges and then scale back when travel patterns return to normal, reducing the financial strain of maintaining idle aircraft.

Why ACMI leasing is a game changer?

For airlines struggling to match seasonal fluctuations, ACMI leasing offers several major benefits.

• Smart scaling without the financial strain: Instead of investing millions in new aircraft, airlines can lease exactly what they need, when they need it.
• Fast and efficient deployment: With ACMI, aircraft can be added to the fleet almost immediately, ensuring services during peak times.
• Lower risk, higher reward: ACMI providers handle crew, maintenance, and insurance, minimizing the airline’s operational risk.

• Increased reliability and passenger satisfaction: With ACMI, airlines can count on highly maintained aircraft and professional crews, ensuring a smooth travel experience for customers.

Examples of ACMI in action within APAC

New year travel surge

In November 2024, Vietravel Airlines expanded its fleet by leasing an A320 aircraft from Avion Express Malta, a subsidiary of the Lithuania-based ACMI service provider. This strategic move aimed to enhance the airline’s capacity in anticipation of the Lunar New Year peak season, ensuring they could meet the heightened travel demand during this festive period.

Winter Travel Peaks

Bangkok Airways announced a wet-lease agreement with French airline, Amelia, to meet rising international travel demand from December 2024, and running throughout the winter season. The partnership will see two additional Airbus A319 and A320 aircraft servicing key routes.

These include connections between Bangkok and popular destinations Phnom Penh, Siem Reap, and Luang Prabang. The move comes as the airline anticipates higher passenger numbers during the winter travel period.

Humanitarian Aid

But it’s not just in the passenger segment where ACMI airlines are utilized to meet major challenges. BBN Airlines Indonesia, a Jakarta-based ACMI and charter airline, recently assisted in a humanitarian mission to Vanuatu, assisting the National Disaster Management Authority (BNPB). Utilizing a Boeing 737-800F aircraft, they successfully transported 21 tons of crucial supplies to the region that was hit by the devastating 7.3-magnitude earthquake.

 

Choosing the right ACMI leasing partner

The Asia-Pacific region has a growing demand for ACMI (Aircraft, Crew, Maintenance, and Insurance) leasing, especially during peak travel seasons. Airlines looking to partner with an ACMI provider must carefully assess their options to ensure operational efficiency, cost-effectiveness, and regulatory compliance.

Define your operational needs

Before selecting an ACMI provider, airlines should determine whether they need leasing for seasonal demand, fleet expansion, maintenance cover, or new route testing. Short-term wet leases (which include crew and maintenance) may be best for peak seasons, while dry leases (aircraft only) work for long-term expansion.

Assess fleet compatibility

Ensure the ACMI provider offers aircraft types that align with the airline’s needs, whether it’s narrow-body aircraft (A320, B737) for regional routes or wide-body jets (B777, A330) for long-haul operations.

Verify compliance & safety standards

Regulatory approval is critical. Airlines should confirm that their ACMI partner has:

• A valid Air Operator’s Certificate (AOC)
• IATA Operational Safety Audit (IOSA) certification
• Compliance with APAC aviation regulations (CASA, CAAC, DGCA, JCAB, etc.)

Compare costs & contract flexibility

Analyze both fixed costs and per-flight-hour pricing to ensure budget efficiency. Airlines should also check fuel policies, minimum flight-hour commitments, and potential penalties in case of operational disruptions.

Evaluate performance & reliability

A strong ACMI partner should have a proven track record of on-time performance, aircraft availability, and minimal delays. Airlines should seek feedback from other carriers that have worked with the provider.

Ensure passenger & crew experience aligns

For passenger airlines, the ACMI provider’s cabin configuration, branding flexibility, and onboard services should match the airline’s customer experience expectations.

Establish clear contractual terms

A Service Level Agreement (SLA) should outline:

• Aircraft availability & flight-hour commitments
• Insurance & liability coverage
• Termination clauses & force majeure considerations 

Next steps

For airlines operating in APAC, ACMI leasing is an essential tool for navigating the region’s extreme seasonality. By boosting capacity when needed and scaling down during off-peak months, airlines can maximize profitability without overcommitting resources.

If your airline is gearing up for the next peak travel season, now is the time to explore flexible ACMI leasing solutions. With the right ACMI partner, you can ensure smooth operations, keep passengers happy, and make the most of every travel surge.

Get in touch with the Chapman Freeborn team at [email protected] to discuss aircraft charter or ACMI leasing through one of our Avia Solutions Group network airlines in the region.