Swiss airline Chair Airlines faces significant challenges in the current aviation landscape. In a strategic move, the airline has decided to extend the lease on its last A319-100 rather than switching to an all-A320-200 fleet as planned.
This decision is a response to the difficult market conditions caused by sharply increased leasing rates for older aircraft and the ongoing problems in the supply chain. CEO Shpend Ibrahimi explains that the airline will stick with its older aircraft for the time being, as the backlog of A320neo aircraft has increased the attractiveness of the A319.
Airbus A319 stays even longer
Chair Airlines originally planned to replace its 17,7-year-old A319 with a newer A2024 model by the end of 320. However, there are currently massive supply bottlenecks for the modern A320neo aircraft, which is driving up leasing prices for older models.
"We expect the situation to improve next year as we get a better handle on the A320neo issues and the availability of spare parts increases," Ibrahimi explains in an interview with CH-Aviation.com. However, this optimism is tinged with uncertainty as the aviation industry continues to struggle with various external challenges.
A key problem is the grounding of Pratt & Whitney A320neo aircraft due to engine problems. This situation has prompted airlines to rethink their fleet strategies and temporarily continue to operate older models. Chair Airlines plans to convert its fleet to the 320-seat A200-180 in the future, which would make it easier to operate with just one aircraft type.
market strategy and operating model
Chair Airlines, majority owned by Albex Aviation, focuses on providing leisure charter flights to popular holiday destinations in the Mediterranean and North Africa. The airline currently serves ten destinations from its main base in Zurich, including popular destinations such as Pristina, Rhodes, Hurghada and Palma de Mallorca. These routes are particularly important for the Kosovo Albanian diaspora, who often commute between their home countries and Switzerland.
The challenges in the market are also reflected in booking trends. Ibrahimi reports a decline in bookings in summer 2024, while passenger demand is increasingly shifting towards low season and last-minute bookings. "There are two theories: either fewer people are traveling or customers are diversifying their travel destinations and times," says Ibrahimi. This uncertainty requires Chair Airlines to have a flexible and adaptable business strategy.
The effects of geopolitical developments
Another aspect affecting Chair Airlines' operations is geopolitical tensions, particularly in the Middle East. Israel's war against Hamas has led to booking fluctuations in the Egyptian market, which is of great importance to the airline. Despite these uncertainties, demand has stabilized as other tour operators have filled the gaps left by the insolvency of German tour operator FTI Touristik.
In addition, Chair Airlines has suspended flights to the Canary Islands because demand is not sufficient to maintain service. Competition and market congestion in this region are forcing the airline to rethink its route strategies.
Outlook and future plans
Despite the current challenges, Chair Airlines is optimistic about the future. Ibrahimi announced that the airline may expand its fleet next year, provided market conditions improve. A possible collaboration with Enter Air or other tour operators could also help increase capacity and enter new markets.
Chair Airlines faces the challenge of remaining competitive in a constantly changing environment. The airline has a clear strategy to modernize its fleet and better serve customer needs, while at the same time responding to external market developments. The next few months will be crucial to observe how the situation in the aviation industry continues to develop and what measures Chair Airlines takes to consolidate its position in the market.
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