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Airbaltic to Become Europe’s First Airline to Implement SpaceX’s Starlink Technology

Issue 26 - 2024
Airbaltic to Become Europe’s First Airline to Implement SpaceX’s Starlink Technology

At the Riga Aviation Forum, We spoke with Mr. Martin Gauss, President and CEO of airBaltic, to gain insights into their fleet and route expansion plans, the use of sustainable aviation fuel (SAF), and digitalization initiatives.

 Aviation Turkey: Martin, thank you for the interview. Let's start with your personal assessments of the Riga Aviation Forum.

Martin GAUSS: The event continues to grow each year, featuring an impressive lineup of speakers. IATA was present, Eurocontrol participated online, and we had representatives from Riga Airport. Mr. Serkan Kaptan was also here to present on behalf of TAV Airports, contributing to a strong program. The celebration of Riga Airport added to the event’s success.

During my keynote interview, I discussed our current position, as local understanding of these international processes can sometimes be limited. I hope that in the future, the forum will become even more international. I believe it would be beneficial to rename it the Baltic Aviation Forum while still hosting it in Riga. It’s still important to keep it in Riga, but I envision it as the Baltic Aviation Forum moving forward.

Aviation Turkey: Can you share with us the figures on the Air Baltic's performance in the first nine months of this year?

Martin GAUSS: We are unable to share that information at this time as we need to approach the financial markets regarding the bonds listed on the Stock Exchange. However, we provided guidance in August indicating that we expect to meet our revenue, EBITDA, and passenger targets set at the beginning of the year. This is a positive outlook. We currently have record load factors and passenger numbers that exceed our booking expectations, although we are experiencing pressure on yields, similar to what other European airlines are facing. Overall, the outlook remains optimistic.”

Aviation Turkey: With the fleet of 49 aircraft, can you tell us about the new orders and your fleet expansion plan and delivery schedules?

Martin GAUSS:  Our 49th aircraft is arriving this month, followed by the 50th in February. Over the next five years, we expect an additional 50 aircraft. Next year, we’ll add 5 more, bringing our fleet to 54 by the end of the year. By 2026, we’ll have 66 aircraft, 77 by 2027, and we’re on track to reach 100 aircraft by 2029. Currently, we have 97 firm orders and additional purchase rights, which we’ll announce within the next three years as needed. This steady delivery schedule will take us confidently to a 100-aircraft fleet

Aviation Turkey: Do you have any plans for the new type of aircraft or bigger ones?

Martin GAUSS: We are exclusively using the A220-300.  No variants of it. This aircraft has a range of seven hours, allowing us to operate flights to Dubai and various other long and short routes.

Aviation Turkey: How would you evaluate the performance of the A220 so far?

Martin GAUSS: The aircraft’s performance is truly impressive. It’s a 150-seater with providing a wider aisle that resembles a wide-body aircraft. Additionally, the larger overhead compartments enhance the passenger experience, setting it apart from a typical narrow-body plane. With a range of seven hours, this aircraft allows us to explore a broader route portfolio, extending beyond Europe to serve destinations outside the continent as well.

Aviation Turkey: What are your plans for the route expansions? What are the new routes to be announced?

Martin GAUSS:  We have 136 routes now, and each year add new routes, We focus on destinations that can be reached within seven hours. While we consider traffic rights and the capabilities of airports, we have no limitations in targeting major business centers and capitals, as well as leisure destinations. Additionally, we are continuously adjusting and increasing frequencies to existing airports.

For the upcoming year, we have already announced new routes to Mykonos from Riga and Ibiza from Vilnius, both appealing leisure destinations. We also recently introduced flights to Hamburg and Düsseldorf from Vilnius, which serve as key business centers connecting to the capitals. We are increasing our frequencies, currently operating 30 flights to Amsterdam from the three Baltic states. We have secured prime-time slots, differentiating ourselves from the low-cost model, which typically does not operate at Schiphol airport. In contrast, we do, and we also have a codeshare agreement with Turkish Airlines for flights to Istanbul, which is performing well. We are optimistic about expanding our routes as we receive more aircraft. Additionally, we have signed a contract with the Lufthansa Group for 21 aircraft, which will operate under our branding and uniforms for the next three years. This contract reflects our ongoing commitment to this aspect of our business.

Aviation Turkey: So, are there any new routes to Türkiye?

Martin GAUSS: No, but there could be leisure routes and charter flights to the popular destinations such as Antalya. This can be seasonal but now there are no scheduled destinations.  

Aviation Turkey: You had a codeshare with Turkish Airlines. Are you planning to increase the frequencies?

Martin GAUSS: We are staying at the current frequencies (four times a week). I think it's okay for both of us at the moment. Let's see what the future brings. If there is more demand, of course, frequency can go up.

Aviation Turkey: What can you say about the SAF usage of Air Baltic?

Martin GAUSS: According to European Union regulations, we will have to have 2% of SAF in 2026. We will fulfill that. Today, we take SAFl wherever we can. In Riga, there is no SAF available, but for example, there are some airports like Oslo which is already mandatory, and we will be using SAF as it is foreseen when it's available because we want to use as much SAF as possible.

 Aviation Turkey: Also, last but not least, what about your digital activities of your airline?

Martin GAUSS: We are a highly tech-driven airline, embracing numerous technological advancements. Our Frequent Flyer Program features NFTs, which are expected to sell out soon. Additionally, we have been accepting various cryptocurrencies as a payment method for the past ten years, which has proven successful.

The most significant upcoming technological enhancement is the implementation of SpaceX’s Starlink on all our aircraft, which we hope to launch by the end of the year. This will make us the first airline in Europe to offer this service. While other airlines such as Air France, Qatar Airways, and United Airlines have announced plans for Starlink by the end of next year, we believe our early adoption will greatly enhance the passenger experience. We have been working on the Starlink project for two and a half years, and we are excited to be the launch operator in Europe.

Aviation Turkey: Can you manage to solve the problems with the P&W engines?

Martin GAUSS:  This is a common issue across the industry. We experience seasonal highs and lows; this summer, we did not have many missing engines, but we anticipate more shortages this winter. Currently, we do not have enough spare engines to support our entire fleet year-round. It is expected to take another one to two years to have sufficient spare engines for the Airbus A220. While it may take even longer for the A220, we expect to resolve our engine shortages within the next one to two years.

 Aviation Turkey: Would you like to add something for our readers?

Martin GAUSS: Yes, we would like to see your readers if they are in Türkiye to come and visit the Baltics as much as they can.

Aviation Turkey: Thank you for sparing your time to our readers 


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