Based in Dublin, Avia Solutions Group is the world’s largest ACMI provider. The group operates in over 70 countries and has offices in Lithuania, New York, Dubai, Dublin, and other cities around the globe. The Group consists of 100+ companies providing a wide range of aviation services such as aircraft maintenance and repair (MRO), pilot and crew training, ground handling, and more.

The group is now planning to open a Sustainable Aviation Fuel (SAF) production facility, NorSAF, in the Special Economic Zone of Liepaja, Latvia. Once online, the facility will be Northern Europe’s largest, producing and exporting 100,000 tons of SAF and eSAF, a synthetic sustainable fuel, as well as 20,000 tons of other renewable and e-fuels (diesel and petrol). It will be the only European facility of its kind capable of producing both SAF and eSAF.

The Group’s founder and chairman, Gediminas Ziemelis, spoke to us about his thoughts on the aviation industry, why producing SAF in Europe will be critical for the region and entrepreneurship.

Can you tell us a little more about Avia Solutions Group as a business?

 Airlines have three options for their fleet. They can either own the aircraft, lease it for the long term for around 5 to 7 years or use wet leasing, or ACMI, which tends to be for a shorter period of around six months.

ACMI provision is a core part of our business and essentially it involves providing short-term capacity to carriers during their peak seasons, which is typically during summer.

For airlines this is a good deal as they only pay for the assets when they are using it to maximize revenue. We estimate in general that when used for a maximum of 6 months and for 10% of their fleet, ACMI helps boost airline profitability by around 2% to 3%.

But we are also an aviation services group. For example, we are present in MRO through our subsidiary FL Technics, which recently opened a new facility at Punta Cana Airport in the Dominican Republic, and we also supply pilot training, ground handling, fuel supply, charter and animal transportation among other services through our 100 plus subsidiaries.

You recently placed an order with Boeing. Why?

I am tremendously proud that we have reached the stage as a business where we are placing orders with Boeing for 80 737 MAX. Once delivered, these aircraft will enhance the fleets of our airlines, giving their customers both operational flexibility and greater fuel efficiency.

Equally, it was further proof that Avia Solutions Group is an attractive partner for established firms. In 2021, US private equity group Certares invested $300 million for 20% equity in the Group while in early 2024, former US secretary of state and CIA director Mike Pompeo agreed to become our strategic advisor. All these events are key milestones but we are already looking forward and working towards achieving the next ones. NorSAF will certainly be one of those.

If you had to briefly describe today’s aviation industry, what are the main trends you would mention?

 The adoption of ACMI is going to continue to grow globally. While Europe has traditionally been the largest market, airlines in regions like Asia Pacific and Latin America are starting to adopt the model too, which gives us a counter cyclical model as when European peak demand ends these regions enter summer and need our services. We have also had consultants estimate the size of the global ACMI market to be potentially $30bn overall with a need for 1500 jets a year. Currently we are by far the largest ACMI provider, with our fleet of around 209 aircraft carrying over 35 million passengers annually, so the numbers and market projections show the growth potential in this market. This is why we have invested heavily in establishing AOCs in countries like the Philippines, Thailand, Brazil and Australia.

What’s driving this adoption globally is that management teams are realizing that owning or long-term leasing all their fleet is not financially optimal. By using ACMI to meet short-term peaks of demand, revenues and profits can be maximized.

 Can you tell us about the SAF market in Europe?

 The demand for SAF is only going to increase over the next few decades. Partly this is being driven by ESG and sustainability initiatives that the aviation industry has put in place themselves, but it will also be driven by regulation.

Currently, the EU is stipulating that SAF should make up 6% of all fuel used in aviation by 2030. This will rise to 70% of all jet fuel used by 2050.

This is all creating a massive supply challenge.

For instance, just the UK’s Jet Zero strategy alone estimates a SAF requirement of 7.0 million tons by 2050 to achieve net-zero in the UK. However, in Europe, SAF production only slightly surpassed 1 million tons in 2024.

Clearly then the strong drivers of long-term demand for SAF create the need to start to develop projects today that can supply SAF at scale. This is why we are embarking on the NorSAF project here at Liepaja in Latvia.

Why did you choose Latvia for NorSAF?

There are a couple of reasons. Firstly, we had the chance to buy a controlling stake in an oil storage company that had the necessary infrastructure and land attached, which would allow us to quickly convert the site and start. When this opportunity was coupled with the potential of the Special Economic Zone in Liepaja, we became very keen on being based in Latvia. There is a lot of potential for growth in this region.

I also think it is important for Europe to start to move towards having energy sovereignty, and SAF will be one component of this.

Who will be NorSAF’s customers?

 Our subsidiaries, BGS and Aviator, provide fuel supply and ground handling services in 25 airports located in Northern Europe, and naturally some of the NorSAF production will go here. We also expect other airports and airlines to be customers, and indeed we are currently pre-agreeing with other parties as part of our financing agreements.

When can we expect NorSAF to launch? What will be special about the facility?

 If the feasibility studies we are conducting come back with a green light to begin work, we expect the NorSAF facility to be online by 2030. Once it is complete, NorSAF will be the only European facility capable of producing eSAF because we are investing in equipping it with the most advanced technology we can. It is very important to bake in long-term viability with an infrastructure project like this.

Finally, aside from building a global aviation powerhouse, you’ve also set up over 50 businesses and have also founded basketball teams. Any advice for any potential entrepreneurs reading this?

Work hard, but also find your passion. If you are passionate about the area you are building your business in, you will be motivated to overcome the obstacles that are bound to be put in front of you. Being resilient is tremendously important.

You also need to set goals, both short- and long-term, to work toward. After all, if you don’t have a target, you are working toward, how do you know if you are successful in your efforts?

But the most important thing is people. As a leader, you need to build a great team who can achieve the goals with you. As the old saying goes, “A man is not an island,” and the same is very true in business.