AMC Aviation (Poland) (AMQ, Warsaw Chopin) has expanded its charter offering by introducing small jets popular in Western Europe in response to increased demand for short-haul travel. The company continues to see sustained demand for midsize and super-midsize jets despite the closure of the Ukrainian, Russian, and Belarussian markets, Chief Executive Andrzej Kisiel told ch-aviation in an interview at EBACE in Geneva.
"The war [in Ukraine] changed everything for our business. We started looking for another market in the west of Europe and to the south, in Africa. We saw that in Western Europe, people don't need midsize and super-midsize aircraft; they just use small jets to fly for one hour. It was difficult for us to offer a good product for those clients. We started to look into solutions for that, and now we have smaller aircraft in our fleet," he explained.
The operator's fleet of very light and light jets currently comprises one E500 Phenom 100, one HondaJet HA-420, two PC-24s, and two Beechcraft Premier 1As. It plans to add a third PC-24 in early July 2024.
Kisiel believes that new-generation small jets, such as the HondaJet, will gain in popularity due to their performance. Compared to older aircraft of the same generation, the type has superior baggage capacity and low cabin noise due to its engines being mounted on pylons above the wings. The PC-24 has very good short-field performance but it is a relatively expensive aircraft, which makes it difficult to justify for charter operations. This therefore gives older types the advantage, such as the Phenom 300 or the CJ3+, which can be bought second-hand at a significantly lower cost.
Larger jet operations
The Polish business charter and aircraft management specialist still sees healthy demand for midsize and super-midsize aircraft charters, although it is largely centred on the busier summer months. In turn, winter demand skews more towards smaller aircraft. Kisiel said AMC Aviation is now exploring more charter opportunities in the Middle East for its larger aircraft, where demand outstrips Western Europe.
Besides the newly introduced very light and light jets, AMC Aviation's in-house fleet also comprises one Beech King Air 350i, one Cessna Citation Jet 3+, one Citation Excel, one Challenger 350, one Praetor 600, one Gulfstream G150, one Gulfstream G280, one Gulfstream GVII-G500s, and three Learjet 60XRs.
Kisiel said the airline has its own aircraft purely for charters - the Learjet 60XR - but its overall business is split between charters and management.
Benefits of Polish AOC
AMC Aviation has most of its owned and managed aircraft registered on the Polish SP- register; it does not have any other Air Operator's Certificates. Kisiel highlighted that as the largest business aircraft operator in Poland with over 15 years of experience, it is satisfied with the local authorities. However, a few years it did look into a Maltese AOC, but concluded there would be no benefits.
"We stopped these analyses because we saw the same quality with the Polish CAA. For 15 years, we have been working with them, and we have never had any problems," Kisiel said, adding that the CAA's physical proximity to AMC's offices in Warsaw is an important asset for day-to-day operations, as it makes communications and bureaucracy much easier. Furthermore, as most of AMC Aviation's customers are based in Poland, their aircraft are financed by Polish banks, which also prefer to keep the assets on the local register.
Maintenance opportunities
AMC Aviation is a certified maintenance provider with a 3,800-square-metre hangar at Warsaw Modlin airport. Having in-house MRO capabilities has helped the company avoid bottlenecks in the maintenance of its operated fleet. Nonetheless, maintenance is also a standalone business division, with around 20% of its work currently coming from third parties. AMC Aviation aims to increase this share and has plans to invest in a new hangar although this will require third-party customers to justify the business case, Kisiel said.
The CEO also bemoaned the lack of clarity about the future of the Warsaw metro area airport strategy saying it is a problem for the business aviation market. Warsaw Chopin, where AMC Aviation does some line maintenance and runs operations, is full - it is difficult to park aircraft there already now. But while Modlin still has room for growth, Kisiel asked that business aviation be more included in ongoing discussions about a replacement airport for Warsaw Chopin.
Aircraft Transactions
Besides its core business of jet charters, aircraft management, and maintenance, AMC Aviation offers consultancy services for aircraft sale and purchase transactions. These include aircraft deliveries, registration, pre-purchase inspections, document assessments, aircraft purchase agreement reviews, and assistance with aircraft financing. AMC sees this as an attractive business proposition, as it allows it to promote hassle-free aircraft ownership for which there is strong demand among prospective aircraft owners, Kisiel added.