Dubai’s Aviation Tycoon Amasses $1.5 Billion Fortune Amid Global Aircraft Shortage

A Dubai-based entrepreneur has built a $1.5 billion fortune by solving a critical problem for airlines. Gediminas Ziemelis profits from the global aircraft shortage through his wet-leasing firm, Avia. His company provides planes with full crews and maintenance on short-term contracts. This model has become a strategic necessity for carriers worldwide.

The surge in travel demand has collided with production delays at major manufacturers. According to Bloomberg, Ziemelis’s firm capitalized on this gap, amassing a fleet of 187 aircraft. His recent deal for up to 80 Boeing jets provided crucial support to the manufacturer during a difficult period.

Solving the Global Aircraft Shortage

Gediminas Ziemelis saw a major opportunity in aviation’s supply chain crisis. His firm, Avia, offers a one-stop shop solution for airlines. He leases planes complete with pilots, crew, and maintenance, a service known as wet leasing.

This model helps airlines during unexpected demand spikes or unplanned maintenance. Carriers like Germany’s Eurowings and Mexico’s Grupo Viva Aerobus use his services. The approach allows airlines to avoid costly, long-term fleet investments.

The business is not without its risks. During the pandemic, demand collapsed and Avia grounded much of its fleet. ACMI operators bear full operational costs, leaving them vulnerable during market downturns.

The Lucrative Wet Leasing Business Model

The wet leasing sector is experiencing record growth. IBA Group data shows 2024 was a record year, with over 920,000 block hours flown by providers. What was once a seasonal stopgap is now a year-round necessity.

Ziemelis’s pitch hinges on speed and flexibility. Airlines facing delivery delays cannot wait months for new aircraft. Wet leasing offers an immediate, though more expensive, solution.

Approximately 28% of airlines in emerging markets use wet lessors. This allows them to avoid capital-intensive fleet purchases. It also helps them manage seasonal capacity changes more effectively.

The $1.5 billion fortune of this aviation tycoon underscores a fundamental shift in how airlines operate. His success is directly tied to the ongoing global aircraft shortage, proving that niche solutions can yield massive rewards in a disrupted market.

Thought you’d like to know

What is wet leasing in aviation?

Wet leasing, or ACMI, involves renting an aircraft along with its crew, maintenance, and insurance. It is a short-term solution for airlines facing capacity issues. This differs from dry leasing, which only provides the aircraft itself.

Why is wet leasing becoming more popular?

Ongoing aircraft shortages and production delays are driving demand. Airlines use it to manage peak travel seasons without long-term commitments. It has evolved from a seasonal tool to a strategic necessity.

What are the risks of the wet leasing business?

The model carries high fixed costs during market downturns. The pandemic forced many operators to ground fleets with no revenue. If aircraft supply normalizes, demand for wet leasing could soften.

How large is the Avia Solutions Group fleet?

The group currently operates a fleet of 187 aircraft. It has ambitious plans to expand to 700 aircraft by the year 2030. This growth reflects confidence in the sustained demand for ACMI services.

Who are the clients of Avia Solutions Group?

Its clients include major airlines like Eurowings and Grupo Viva Aerobus. The firm serves carriers facing unexpected demand or operational challenges. It provides a flexible alternative to traditional aircraft acquisition.