Faced with the threat of a 15-day strike at the start of the summer holidays, British Airways, via its parent company International Group, in July 2017 called on Qatar Airways to make up for crew defections and ensure its customers' holiday departures. It was there, five years ago, that the idea of a European airline was born, which would be able to provide a range of services (aircraft, pilots and crews) to companies that needed them on an ad hoc basis.

With 35 years of experience in aviation as a captain and examiner in the French Navy as well as low cost, charter and national airlines in Europe, Africa, Asia, the Middle East and the Pacific, Patrick Thierry launched a market study: are there quality ACMIs (aircraft, crew, maintenance and insurance) in Europe?

No quality ACMI in Europe

“There was one in Portugal and a few in Eastern Europe,” said the CEO of FlyLux Airlines after a meeting at House 17 in mid-June. Today, according to Market Monitor Global analysts, there should be interest in two Portuguese AMCIs--Hi Fly (4th in the world top 10 with its 17 Airbuses) and EuroAtlantic Airways (7th with 8 Boeings). There are five more companies in Europe: SmartLynx Airlines (2nd in the top 10 in Riga, Latvia with its 33 Airbuses), Air Atlanta Icelandic (5th in Iceland with 16 Airbuses and Boeings), GetJet Airlines (8th in Lithuania with 8 Airbuses and Boeings) and Avion Express (9th in Lithuania with 5 Airbuses and Boeings and a subsidiary in Malta that operates 8 aircraft).

“Not only did the Airbus Neos not exist at the time. ACMI companies don’t have Airbus Neos but rather old planes that favour low rental prices by using crews that have a high turnover because they are underpaid. Either young pilots who need flight hours, or old pilots who need to finish their careers,” said Thierry, “but there is a big environmental need and a big need for quality. A need for national companies to add capacity in a quality environment. The reach is going to go a little bit further than Europe.”

The A320 Neo reshuffles the deck

The first A320 Neo flew on a provisional route at the beginning of January 2016 (until its new engines ordered from General Electric and Safran arrived), but the market expectation is huge: “The A320 Neo consumes 20% less fuel, costs 14% less in operating costs and 5% less in structural costs, with the advantage for Luxembourg of being close to Germany for maintenance and close to Belgium for continuous pilot training. The Neos are not that much more expensive than the others because due to covid, the airlines have no cash.”

Six months ago, the entrepreneurs behind the project started applying for their operating licence and air transport certificate, both of which are Luxembourg-based. The planes will be registered in Luxembourg and the employment contracts in Luxembourg. They hope to be flying in early autumn, a little later than when airlines need them. This spring would have been the ideal time, Thierry acknowledges.

At a time when airlines are cancelling flights due to a lack of staff after deflating during covid, FlyLux Airlines says it has the human resources it needs. “There are plenty of good pilots who want to fly nice planes! Ours have experience in major airlines,” said Thierry. “Covid has meant that many airlines have made work contracts well below the market. As we don’t have two and a half years of crisis behind us, we have more room to manoeuvre.”

Some 15 clients already interested

“We went to potential customers, looked at the available aircraft and built the model,” he said. This project is currently valued at €2.6m, but its budget will be re-evaluated up to €100m depending on its beginnings and its ambitions. “Part of this has already been secured,” the new CEO said. Today, 14 clients have already firmly expressed their interest, while one national company is interested in leasing an aircraft for two years.

In mid-June, the entrepreneurs behind the company appointed Idrisse Ahamed as a director and honorary chairman of the board. Founder, CEO and now chairman of the board of , which is active in engineering, infrastructure works and investments, Ahamed is also founder of the Maison méditerranéenne du climat in Tangier, Morocco, and was until recently advisor to the Comorian minister of foreign affairs, where he held various positions close to power.

His vice-chairman at Groupe A is another well-known personality in Luxembourg: Bruno Théret is an advisor to ArcelorMittal and a member of the consular council of the French in Luxembourg.

“I’m happy to join a modern structure that wants to have an environmental impact. I have been an entrepreneur for 20 years and, of course, I have had successes and failures. I started out in engineering for infrastructure works before moving into investment activities. I am also passionate about aviation," Ahamed explained alongside the CEO of the young company.

According to the document published in the commercial register, in addition to Thierry, the only shareholder so far, Eric Bonafini, has been appointed financial director. Bonafini, who is known in Luxembourg as the founder of the Luxembourg Wine School, has been running a strategic business startup consultancy, OBS, since 2012. At his side is Pat Gemmer, a retired pilot, notably of the former West Air Luxembourg, who becomes a director and operational director of the company. Finally, the Israeli , an expert in aviation law, has been appointed legal representative.

On the side of Groupe A, its lawyer David Calfoun, said that he considers the data on the group’s turnover and profit as confidential. “The group’s website is not updated in real time. It is therefore possible that there is a gap in the information,” he said.

This story was first published in French on . It has been translated and edited for Delano.