In aviation, one of the most important milestones for an airline – practically, the one that defines it as such – is obtaining the Aircraft Operator Certificate (AOC). This certificate grants an airline the legal right to operate aircraft for commercial purposes, ensuring that it meets both national and international safety, operational, and maintenance standards.
On December 3, LEVEL, the low-cost subsidiary of International Airlines Group (IAG), obtained its own AOC, marking an important step in its evolution as an independent airline. But what exactly is an AOC, and how will it change LEVEL’s operations?
What is an Aircraft Operator Certificate (AOC)?
An AOC is a license granted by the civil aviation authority of a country, allowing an airline to perform commercial air operations. Whether for domestic or international flights, this certificate is essential to ensure that the airline complies with safety, maintenance, and operational standards. To obtain an AOC, an airline must demonstrate that it has the necessary infrastructure, qualified personnel, aircraft, and financial stability to operate safely.
In practical terms, the AOC serves several functions:
- Safety Assurance: Ensures the airline complies with safety management systems (SMS) and crew training, maintenance, and operational standards.
- Regulatory Compliance: Demonstrates that the airline operates in accordance with the regulations of the country’s civil aviation authority.
- Operational Control: The AOC allows airlines to independently manage their flight schedules, route networks, and fleet operations.
For LEVEL, obtaining its own AOC is a crucial step in consolidating its position in the aviation market and granting it full autonomy in its operations.
How Will LEVEL’s AOC Affect Its Operations?
Before obtaining its own AOC, LEVEL operated as an extension of Iberia, one of the main airlines of the IAG group. While this structure allowed it to leverage IAG’s resources and infrastructure, obtaining its own AOC marks the beginning of a new phase for the airline, bringing several significant changes to its operations.
Here are the key ways in which its own AOC will change its day-to-day operations:
1. Greater Autonomy and Operational Control
One of the main advantages of obtaining an AOC is that LEVEL now has full control over its operations. Previously, as part of Iberia, operations had to align with the procedures and schedules of the parent airline. Now, with its own AOC, the company can:
- Define its own routes and flight schedules without needing to coordinate with Iberia.
- Develop unique operational procedures tailored to its low-cost model, from check-in procedures to onboard services.
- Make decisions regarding fleet management, including aircraft selection and leasing, and determine its own maintenance schedule.
2. Brand Identity and Market Positioning
Operating with its own AOC allows LEVEL to further consolidate its brand identity. Although it remains part of the IAG group, it now has more freedom to position itself as an independent airline in the market, focusing on its value proposition as a low-cost carrier for long-haul flights. This will allow it to:
- Develop unique marketing campaigns and loyalty programs that reinforce its value proposition.
- Create a separate image from Iberia, appealing to budget-conscious travelers seeking affordable options for international flights.
- Strengthen its position in the competitive long-haul low-cost airline market, competing with other players like Norwegian and Air Canada Rouge.
3. Expansion of Route Network and Service Flexibility
With its own AOC, LEVEL now has the flexibility to expand its route network more freely. Previously, its routes and destinations were closely tied to Iberia’s operational structure. Now, the company can introduce new services, target untapped markets, and potentially increase its fleet to meet growing demand. This could include:
- Adding new destinations in North America, the Caribbean, and South America, which are key to LEVEL’s current operations.
- Responding to demand changes with more frequent flights or new routes, especially for leisure and budget travelers.
4. Independent Revenue Generation
Having its own AOC allows LEVEL to operate independently in terms of revenue generation. While IAG may still be involved in overall financial support, the airline is now responsible for its financial viability. This opens up new avenues for revenue generation, such as:
- Charter services: The company could expand into charter flight operations, especially for groups or seasonal travel.
- Code-sharing agreements and partnerships: The airline can enter into code-sharing agreements and partnerships with other carriers, expanding its market presence and network connections.
- Customized pricing strategies: LEVEL has the flexibility to implement its own pricing structure, which is a cornerstone of the low-cost airline model. This includes defining its own ancillary service strategies, such as checked baggage and seat selection, allowing passengers to pay only for what they need.
5. Simplified Safety and Compliance Systems
While operating under Iberia’s AOC, LEVEL had to comply with the same safety and operational procedures as its parent airline. Now, with its own AOC, the company is responsible for managing its own safety management systems (SMS), crew training programs, and aircraft maintenance. This means that:
- The company can adapt its procedures to meet its own operational needs, while still complying with safety standards.
- The airline can implement unique operational strategies to improve efficiency and reduce costs, as long as it meets regulatory requirements.
6. Increased Credibility and Market Confidence
Obtaining its own AOC is an important step for LEVEL, as it demonstrates to regulators, investors, and customers that the airline meets the necessary safety and operational standards to operate independently. This enhances the airline’s credibility in the market and provides passengers with the confidence that they are flying with a certified, safe, and reliable airline.
The Future of LEVEL After Obtaining the AOC
The acquisition of its own AOC places LEVEL in an ideal position for sustained growth and independence. The low-cost airline model is gaining traction globally, and the company is well-positioned to capitalize on the growing demand for affordable long-haul travel. As it continues to expand its fleet and route network, the AOC will be essential to its strategy in competing with other low-cost carriers and consolidating its brand presence in the market.
