A UK airline that operates flights from Gatwick Airport and Stansted Airport has cancelled all flights with immediate effect. Ascend Airways, a wet-lease carrier, did not sell seats directly to passengers but operated behind the scenes as a short-term supplier of fully-crewed planes. Known as an ACMI (Aircraft, Crew, Maintenance and Insurance) provider, its customers were other airlines, not travellers.
Impact on Operations
Ascend Airways had previously served clients such as TUI, Oman Air, and Air Sierra Leone. However, the company is now giving up its UK Air Operator’s Certificate (AOC), a document required for commercial flight operations in the UK. The airline will also return its fleet of eight aircraft.
According to insiders, a company-wide email explaining the shutdown blamed economic pressures, including the impact of the jet fuel crisis caused by the conflict in Iran. 'It’s to do with the economy, we couldn’t get contracts, the UK is a lot more expensive than Europe,' a source told The Sun. 'The fuel situation had a massive effect on it as well.'
Fuel Crisis Details
The Strait of Hormuz, which has been effectively blocked by Iran since February, handles approximately 20% of the world’s oil supply. Its closure and the subsequent jet fuel crisis have had a massive impact on the aviation industry. Costs for a barrel of jet fuel skyrocketed from around $85 to $90 per barrel to $150 to $200 per barrel. While airlines worldwide are cutting routes and introducing extra charges to manage soaring prices, Ascend is the first UK airline to cease operations because of it.
The carrier reportedly waited until their final flight with Oman Air had landed from Muscat at Stansted Airport before sharing the news with colleagues. Insiders say Ascend also cited a lack of contracts, again due to airlines scaling back operations amid the jet fuel crisis, as a cause for the company's troubles. Aviation Business News reports that Ascend unsuccessfully bid on a licence to operate across the Scottish islands.
Separate Entity in Malaysia
The airline’s Malaysian arm has clarified that its operations remain unaffected. In a LinkedIn post, the airline said Ascend Airways Malaysia is a separate legal and financial entity from Ascend Airways Ltd in the UK and continues to operate as usual. 'Ascend Airways Malaysia remains operationally stable, continues to meet all its contractual obligations and is progressing on-track with communicated expansion plans,' it stated.
Background on Ascend Airways
Although new, Ascend Airways is part of the Avia Solutions Group family, the world’s largest ACMI provider, based in Dublin. The group includes Latvia-based SmartLynx, which calls itself the 'Uber of aviation,' and Lithuanian Avion Express.
What is Wet-Leasing?
Rhys Jones, aviation editor at headforpoints.com, explained to Metro: 'Wet leasing is a common practice in aviation where airlines effectively rent someone else’s aircraft to fly for them. Unlike a dry lease, which covers just the aircraft, a wet lease comes with pilots and cabin crew to operate the plane. This means they can often be dropped into services at short notice as airlines do not have to train or retrain crew to operate.'
Passengers are not able to book onto these aircraft directly, as wet lessors do not usually run commercial, bookable services, catering to the airlines directly instead. Jones added: 'There are a number of companies that specialise in wet-leased aircraft including, in the UK, Titan Airways. Unlike conventional airlines with scheduled departures and route networks, Titan Airways exists simply to operate services for other airlines and special charter flights. As a result, you won’t find their flights available to book online or in flight search engines. Some airlines wet lease for others, such as Finnair for Qatar Airways or Qantas.'
'As a passenger, you may not know you are on a wet-leased aircraft until you step on the plane, as these flights operate as part of an airline’s normal operations, with the same flight number as one operated by an airline’s own aircraft,' Jones noted. Airlines try to keep service as close to their own as possible. However, Jones says an easy way to spot a wet-leased service is that it will not have the airline’s branding on the tail, and the crew will be wearing different uniforms. 'Whilst the interior cabin configuration is different, airlines will often try and load the same standard meal service they offer to all customers,' Jones concluded.
