COO Interview: Wings of Adaptivity—SkyUp's Success Story

DALLAS — When Russia's full-scale invasion of Ukraine began in February 2022, airlines were among the first sectors to face immediate challenges. With Ukrainian airspace closing overnight, carriers were forced to either adapt or cease operations entirely. SkyUp Airlines (U5) chose the former, embarking on a remarkable journey of resilience and transformation.

"We had to reinvent our whole strategy and business model," explains Robert Kloczkowski, COO of SkyUp Airlines. "From a scheduled operator providing passenger and charter flights, we had to redefine ourselves to adapt to the new situation."

Unlike many Ukrainian carriers that couldn't weather the storm, SkyUp quickly pivoted its operations. The airline managed to secure the safety of its fleet by basing aircraft abroad. It even coordinated a sensitive operation to move one aircraft from Ukraine to Western Europe during the conflict.

Company Background‍

SkyUp has been successfully operating for over six years, and in this relatively short time, it has established itself as a steadfast player in the European market, demonstrating remarkable adaptability, a word that Kloczkowski emphasizes and sums up how the airline has navigated the twists and turns that it has faced.

The airline's growth trajectory is especially impressive given that it confronted both the current conflict and the global COVID-19 pandemic shortly after its inception—a double crisis in remarkably quick order. Despite these continuous hurdles, SkyUp has remained agile and able to grow, laying the groundwork for its current international operations and ambitious targets for the future.

Prior to the epidemic, it had a wide route network that encompassed destinations such as Zanzibar (ZNZ), Colombo (CMB), and Jeddah (JED). Despite long sector lengths, the carrier was not afraid to optimize the capabilities of its narrow-body fleet, involving en-route fuel stops on especially long sector lengths.

Operational Resilience

Staffing presented another significant challenge during the conflict. While some employees joined the military, some relocated within Ukraine or to other European countries. The airline embraced remote working concepts where possible, though operational functions like their Operations Control Center (OCC) required in-person coordination. The COO compared the pandemic to a rehearsal for the conflict, pointing out that many employees had already adapted to remote working by the time the full-scale invasion started in 2022.

"We decided to open an office in Sofia, Bulgaria, where we have key personnel located," Kloczkowski notes. This secondary operational base ensures business continuity even if connectivity issues arise in Kyiv due to power outages from Russian attacks on infrastructure.

The Sofia office, with its location within the European Union (EU), also serves another critical purpose, one that was an unexpected development for many onlookers—facilitating the airline's growth into Europe and the eventual launch of a Maltese subsidiary.

This photo was taken prior to the closure of Ukrainian airspace. SkyUp is seeking to play a key role in the eventual reopening of Ukrainian airspace. Photo: Terminal D Kyiv Borispil Airport/Kyiv Borispil Airport

Strategic Expansion

The airline established a Maltese Air Operator Certificate (AOC) in May 2023, allowing unrestricted access to operating within the EU. This strategic move enabled them to secure contracts with major carriers like Wizz Air (W6) that would have been legally challenging with only a Ukrainian AOC.

The Malta operation, which operates as SkyUp MT under a separate ICAO designator of SEU, currently manages some of the airline's fleet and represents a crucial part of the company's European strategy. Alongside the AOC, the airline also achieved CAMO (Continuing Airworthiness Management Organization) certification in Malta.

These strategic decisions have propelled SkyUp far up the ranks of the ACMI (aircraft, crew, maintenance, and insurance) world—a remarkable achievement for an airline faced with wartime disruption.

Business Model Transformation

SkyUp's business model has evolved dramatically, with approximately 70% of operations now focused on ACMI services. The company has provided wet leasing capacity in far-flung and diverse locations, such as Bangladesh and Papua New Guinea.

In 2023 alone, the airline operated 10,528 flights across 664 routes in 53 countries, carrying 1.5 million passengers—representing a 36% increase in flights and a 24% increase in passengers compared to the previous year. Much of this operation was centered at Chisinau Airport in Moldova. 2024 proved to be equally buoyant and successful.

Beyond commercial operations, SkyUp has proven itself to be a reliable partner for the Ukrainian state, participating in evacuation operations from conflict hotspots such as Israel and Sudan.

Flexible Operations Strategy

Kloczkowski emphasizes the importance of maintaining flexibility across their three business segments: ACMI, charter flights, and scheduled operations. "I can definitely see SkyUp, with our adaptivity, once again coming to this very important work that we will be able to successfully grow business in all those three areas, not just being stuck with this one sort of business, for example, scheduled, but we can be very flexible," he explains.

This adaptive approach allows SkyUp to shift resources based on market demands. "If it is needed to get more capacity for scheduled operations, we would be able to do so. And vice versa, if we see more demand for ACMI and high revenues in this area, we can also easily move more aircraft into ACMI. That's very important for us and for the future and the growth of the company."

This flexibility has proven crucial during unpredictable market conditions, allowing the airline to capitalize on opportunities while mitigating risks.

Return to Scheduled Operations

In an exciting development that demonstrates the airline's recovery and forward momentum, SkyUp returned to scheduled passenger operations this month. The airline launched a regular schedule connecting Chișinău with popular European destinations, with the first flight departing for Lisbon on April 18th. This move represents a significant milestone in SkyUp's post-invasion recovery, allowing the airline to welcome its own passengers back on board.

The choice of Chișinău as a hub for these operations reflects both practical realities, with Ukrainian airspace still closed, and strategic positioning to serve multiple markets in the region. Moldova has been the scene of recent volatility with carrier Air Moldova, which ceased operations in 2023 and left a gap in the market for SkyUp to take advantage of.

Parent Company Evolution

SkyUp works closely with parent company JoinUp, Ukraine's largest tour operator prior to the conflict, which has also demonstrated remarkable adaptability since the war began. "They opened many companies, basically local offices in different countries in Europe, from the Baltic countries, Poland, the Czech Republic, Moldova, and Slovakia. And they also grew the business in all those countries," Kloczkowski notes.

This expansion has allowed JoinUp to maintain operations despite the significant reduction in the Ukrainian travel market. While previously focusing primarily on Ukrainian travelers, the company now serves diverse European markets. The partnership between SkyUp and JoinUp creates synergies that benefit both companies, with the airline operating charter programs for the tour operator while maintaining independent ACMI operations.

Fleet Expansion Ambitions

Looking ahead, SkyUp aims to double its fleet within two years from the current 10 aircraft (seven registered in Ukraine and three in Malta). This expansion is crucial for the airline's continued growth across all business segments.

However, this ambition faces market challenges. "The 737 NG segment is quite dry at the moment," Kloczkowski explains. "There are not that many aircraft available, and when they are, often some big companies just get a package deal for a number of units. So for smaller operators like us, it's just not that easy to get access to some of the deals."

Interestingly, Kloczkowski notes that these market constraints pose a greater challenge than any financial hesitancy related to SkyUp's Ukrainian identity—a testament to the company's solid business fundamentals despite the war.

Future of Ukrainian Airspace

When asked about rumors of Ukrainian airspace partially reopening, Kloczkowski is cautious but hopeful. He emphasizes that such decisions would require extensive safety assessments and coordination between multiple stakeholders. "A lot of work has to go on behind the scenes first to ensure that there is a safe plan to do so," he explains. "Probably a lot of discussions behind the scenes with airline operators, with the leasing companies, with the aircraft insurers, etcetera. They all would need to agree on a safe plan for restoration before we proceed further."

SkyUp's operations to Tel Aviv provided the airline with valuable experience in risk assessment, though Kloczkowski acknowledges that the Ukrainian situation is "more tricky" given the scale and nature of the conflict. Despite these challenges, his commitment is clear: "When everybody agrees that it is safe to do so and the skies reopen, I'm sure that SkyUp will be on the front run to restart flights from our home country."

Culture of Innovation

Kloczkowski, who joined SkyUp in early 2024, expresses admiration for the company's culture and identity despite the operational transformations. He was drawn to the airline by its ability to "adapt and survive and grow and be successful even in extremely difficult circumstances," coupled with its "very modern, 21st-century approach to the product and to the service."

While the ACMI model currently makes it challenging to showcase the airline's brand to the wider public, Kloczkowski notes that SkyUp "redefined the onboard service, treating passengers as guests on board, providing a really great visual experience with a modern design of the cabin along with really modern crew uniforms." This commitment to brand identity and passenger experience remains central to SkyUp's ethos, even as it navigates wartime challenges.

Future Outlook

SkyUp's story is one of remarkable resilience. By embracing adaptability, pursuing strategic growth, and maintaining its identity even as it reinvents its business model, the airline stands as a testament to Ukrainian determination in the face of unprecedented challenges. From overnight adaptation when airspace closed to strategic expansion with a Maltese AOC, from operational innovations to fleet growth ambitions, SkyUp demonstrates what's possible when crisis is met with creativity and determination.

As Kloczkowski puts it, the airline's success stems from "this really good brand that we have and the really, really great team of people." In the face of war, that combination has proven unbeatable.

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