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Internship Report (2)

The internship report focuses on SmartLynx Airlines, detailing its operations, supply chain management, and economic indicators. The report includes a SWOT analysis and recommendations for improving efficiency in dispatch and tracking of aircraft components. It highlights the airline's growth, challenges in the aviation industry, and the importance of effective inventory management within a multicultural team environment.
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0% found this document useful (0 votes)
15 views25 pages

Internship Report (2)

The internship report focuses on SmartLynx Airlines, detailing its operations, supply chain management, and economic indicators. The report includes a SWOT analysis and recommendations for improving efficiency in dispatch and tracking of aircraft components. It highlights the airline's growth, challenges in the aviation industry, and the importance of effective inventory management within a multicultural team environment.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 25

RIGA TECHNICAL UNIVERSITY

Faculty of Engineering Economics and Management

Internship Report

SIA SMARTLYNX AIRLINES

Professional Master Study Program


Logistics and Supply Chain Management Security
2024-2026 Full Time
Sreejith Sankarankutty
241ACG031
Scientific Supervisor: Acad. position Sc./Acad. Degree- Agnese Batenko
Internship supervisor: Manager, Prashant Nair

Riga 2025
Table of Contents

Introduction ..................................................................................................................................... 3
1 Description of SmartLynx Airlines and Industry Represented .................................................... 5
1.1 General Information about SmartLynx Airlines and its Business Environment .................. 5
1.2 Industry's Statistical Data Analysis ...................................................................................... 7
1.3 SmartLynx Airlines SWOT analysis .................................................................................... 7
2 Analysis of SmartLynx Airlines Supply Chain Management .................................................... 13
3 Evaluation and Forecasting of SmartLynx Airlines's Economic Indicators ............................... 16
Conclusions and Proposals ............................................................................................................ 22
List of Used Literature and Sources .............................................................................................. 23
Appendices .................................................................................................................................... 25
3

Introduction

Headquartered in Riga, Latvia, SmartLynx Airlines is an internationally recognized cargo,


charter and ACMI (Aircraft, Crew, Maintenance and Insurance) services provider. In Latvia,
Estonia, and Malta, and the latter with AOC, the airline operates 68 types of 68 types of aircraft
including Airbus A320, A321, A330, and Boeing 737 MAX 8. SmartLynx Airlines made it to a
very important milestone in 2024 when more than 10 million passengers were carried which
represents 62.5% more compared to the previous year. In that same year, the business flew more
than 68,000 flights representing a 43.4 percent increase over that of 2023. The company's
commitment to flexibility and connection has consolidated it as a leading company in the global
aviation business (SmartLynx, 2025).
The internship is carried out in the main warehouse of SmartLynx Airlines in Marupe,
Latvia. The posting is Store Inspector and the responsibilities and duties are store management and
supply chain operations for outstations. The Store Inspector work with the professionals from
Latvia, India, Sri Lanka and Pakistan in multicultural team. During the full lifespan of the aircraft
replacement parts, the warehouse employees are required to receive, sort and ship. Inventory
management and timely delivery of components are the key functions of this function. This is a
project role that is practical and it is based in a dynamic aviation logistics environment. Secondly,
it gives good information about supply chain management and international collaboration
(SmartLynx, 2025).
The freight dispatch to outstations and inventory management is the role place. After
assessing the part requirements, the warehouse assistant picked up the required aircraft components
for daily delivery. Daily update on the recording of the items picked and carried must be made and
provided to the internship supervisor. Store Inspector has a crucial responsibility of keeping the
inventory levels very specific. For processes to work effectively, such components have to be ready
for launch. They need to have consistent communication with individual warehouse personnel and
pay attention to detail (Baltic Course, 2025).
The aim of the internship is to prepare a report which describes the recommendations for
improve efficiency in the dispatch of parts and to improve tracking and communication between
the requester and dispatcher.
4

Various tasks have been implemented to reach the aim and they are stated as follows;
 to assess data related to the supply chain structure of SmartLynx Airlines to gather
knowledge on the whole system,
 to develop a SWOT analysis to know about the current advantages and problems in the
global supply chain
 to conduct a study on the working dispatch system to know the various challenges and risks
facing in the time of outbound supply,
 to describe recommendations for the improvement of dispatch and tracking of shipments.
Some limitations and challenges faced upon the study period that the data collection is
limited as it is credential and the time limit was only 6 weeks which is a short period according to
the size of data.
The tasks have been achieved by conducting data collection from the website of SmartLynx
Airlines and by the support of Internship Supervisor. Both Quantitative and qualitative research
methods are implemented which includes a Statistical data analysis method and financial analysis
methods in this internship report and a SWOT analysis is implemented to acquire knowledge on
strengths, weaknesses, opportunities and threats. Recommendations are provided to improve the
outbound dispatch system.
5

1 Description of SmartLynx Airlines and Industry Represented

The following section discusses the regulations and structure of SmartLynx aviation
industry in Europe and various functions managing by SmartLynx Airlines in the Global aviation
industry.

1.1 General Information about SmartLynx Airlines and its Business


Environment
SmartLynx Airline’s operations had grown as much as evidenced by a 48% year over year
rise in flights to 47,495 in 2023. This increase is caused by the airline’s ambitious expansion plan
and ever-increasing demand throughout its network. Similar on the increase in travelers with an
increase of 53% up to 6.56 million. The airline also raised the size of its fleet from 49 to 67 aircraft.
It encompasses the likes of the A320, A321, A321F and A330, as well as the Boeing 737 MAX 8,
the latter in which the company will enter ACMI (Aircraft, Crew, Maintenance and Insurance)
sector. Impressive development in the cargo operations of 63% also (Wikipedia, 2025).
SmartLynx Airlines performed very well financially in 2023, owing to its growing market
and expanding operations. The company net turnover grew 42 percent from last year to €496.6
million. The airline has grown more profitable and more operationally efficient as reflected by the
EBITDA of €118 million. SmartLynx has a very solid financial basis for the growth of passenger
and cargo operations, with a net profit of €22.7 million. These numbers show the airline has
effectively controlled costs and invested in its large fleet and operations. Significantly, in 2023 the
airline’s reach into the market increased. The activities of SmartLynx have been extended to
Europe, North America, the Middle East and Asia. Being on a larger geographic reach allowed the
airline establish and strengthen associations with significant international carriers. Well known
European and North American customers included TUI, Air Transat, DHL, SAS as well as IndiGo
in India and Anadolu Jet in Turkey. It is with satisfaction that SmartLynx has secured a 12.5%
increase in number of signed contracts, demonstrating SmartLynx’s reputation as a reputable
ACMI and freight operator. This expansion has greatly helped the quick development of the
airline's operational and financial development (Baltic Travelnews, 2022).
At the same time, SmartLynx Airlines is focused on improving its position in the
international aviation industry. For 2024, the plans are to make additional investments in the crew
6

training, fleet expansion aimed at improving operational efficiency and technical capabilities. The
airline also intends to increase its cargo capacity by taking advantage of the development of the
markets in Latin America and the Middle East. SmartLynx strives to acquire more long-term
contracts in the ACMI sector to keep steady revenue and operational stability. They have also set
up these initiatives to ensure the airline can remain on top of its game with the ever-changing
dynamics of the aviation sector in order to further build on the success it had in 2023 (RocketReach
logo, 2025).
In the last five years, the aviation industry has seen significant transformation propelled by
both innovation and adversity. The COVID-19 pandemic caused an unprecedented global
disruption, halting maritime operations and leading to substantial job and economic losses. The
sector has accelerated the use of digital technologies, including touchless check-ins and AI-driven
processes, to enhance efficiency and safety. With the increasing focus on environmental concerns,
investment in the advancement of electric aircraft and sustainable aviation fuel (SAF) has escalated.
Nonetheless, recovery and development have been impeded by manpower shortages and supply
chain issues, especially affecting aircraft manufacturers and maintenance firms. Escalating fuel
costs and geopolitical issues have complicated global corporate operations and profitability. The
industry's resiliency under current challenges is shown by robust passenger demand and a renewed
focus on innovation, fostering cautious optimism for the future which is mentioned in Table 1.1
(Vrublevskyi., Врублевський, 2024).
Table 1.1
SmartLynx Airlines Transportation Statistics (Created by Author according to (Vilkaitė-Vaitonė.,
Papšienė, 2016)
Passengers Cargo Transported Total Flights
Year Primary Aircraft Used
Carried (Tonnes) Operated
2019 ~1,400,000 ~22,000 ~11,000 A320, B737
2020 ~800,000 ~15,000 ~6,500 A320, B737
2021 ~1,200,000 ~18,000 ~9,200 A320, A321
2022 ~1,500,000 ~20,000 ~10,800 A320, A321
2023 ~1,800,000 ~25,000 ~12,500 A320, A321, A330
A320, A321
~2,000,000
2024 ~28,000–32,000 ~13,000–14,500 A320, B737
–2,200,000
A320, B737
A320, A321
~2,200,000
2025 ~30,000–35,000 ~14,000–16,000 A320, A321
–2,500,000
A320, A321, A330
7

Table 1.1 shows the transportation industry, passenger and cargo carries in SmartLynx
Airlines which altered highly in line with the general industry tendency from 2019 to 2025. In
2019, the airline served more than 1.4 million passengers and 22,000 tonnes of cargo but the
COVID-19 pandemic brought about a severe drop in passenger volumes in 2020 of around 800,000.
However, the airline soon adapted as demand for cargo continued to rise to 18,000 tonnes by 2021.
Cargo volumes were up to 25,000 tonnes by 2023, while passenger traffic almost had a pre-
pandemic level of activity (1.8 million) boosted by an enlarged Airbus-focused fleet. In 2024 and
2025 the airline is forecast to continue with growth greater than 2.0 million passengers and cargo
in excess of up to 35,000 tonnes. ACMI leasing, cargo expansion and potential long-haul routes
using A330 and A321XLR are the main drivers for this development (Vilkaitė-Vaitonė., Papšienė,
2016).

1.2 Industry's Statistical Data Analysis

The analysis of statistical data in the aviation industry is important to monitor all key
indicators such as passenger traffic, volume of goods transported or the changing prices of flight
tickets in time. From 2016 to 2019, global aircraft traffic experienced a stable increase, growing
over 4.5 billion passengers up to around 2,400 aircraft until the COVID-19 pandemic brought about
a significant drop in 2020. Passenger numbers dropped to 1.8 billion passengers in 2020 but then
improved and were predicted to reach 4.7 billion passengers by 2025 (Christopher et al., 2016).

Figure 1.1 Market values of Airlines (Created by author according to Christopher et al., 2016)
8

By increasing fuel prices, inflation and higher demand, the main elements driving the
airfare trends in the post-pandemic period. Examination of those trends using data from the entities
of IATA, ICAO, Eurostat, geography and seasonality and travel class. This data is vital for the
component of demand forecasting, airline operations optimization and competition pricing strategy
formulation (Fardnia et al., 2020).
Figure 1.1 illustrates the data of the economy as Delta Airlines was the most valued airline
in the world with a market value of $21.81 billion. Second on our list is Southwest Airlines who
had $17.65 billion in its books, proving its strong domestic nature in the US. United Airlines
Holdings is in third place with $14.7 billion and investors continue to have faith. Market value of
$13.18 billion places Singapore Airlines as the most valuable non-US airlineThe market values of
European carriers international carrier and Deutsche Lufthansa are $9.41 billion and $12.1 billion
respectively. Immediately behind are American Airlines Group and Turkish Airlines as they get
close to $9 billion. In general, the Coolest Gadgets research features a range of top international
companies having a market worth of $4.12 billion. However, with a market worth of $4.12 billion,
Air France-KLM comes in last among the top international companies. Various ACMI companies
in the aviation industries are given in the Figure 1.2 (Gao., Mavris, 2022).

Figure 1.2 ACMI Companies in Aviation (Created by author according to Gao., Mavris, 2022)
9

Air Transport Services Group (USA)


ATSG was a U.S. based aviation holding company primarily engaged in cargo transport and ACMI
leasing through its subsidiaries, Air Transport Services Group Abx Air and Air Transport
International (ATI). It is a global logistics giant with Boeing 767 freighters whose massive fleet
manages Amazon Air and DHL, among other logistics giants. It is an enterprise that focuses on
medium to long term contracts and in the dry and wet leasing. The air freight network forms an
essential part of the e-commerce logistics framework and allows for rapid network expansion of
air freight network (Wittman et al., 2016).

DHL Aviation (Global)


DHL brands operate globally, through many regional airlines, in the air freight business of
Deutsche Post DHL (DHL Aviation). It uses a hybrid business model which operates both internal
fleet and ACMI partnerships with airlines, Kalitta Air, ASL Airlines and Aero-Logic. The
division's support facilitates DHL Express's global time-definite delivery network across more than
220 countries. Its ACMI partnerships make it less susceptible to fluctuating demand by allowing it
to adjust to changing demand and make optimal route networks (Baxter., Srisaeng, 2018).

Airways of Lithuania
Lithuanian ACMI operator Avion Express was specialized in short to medium-haul flights with
Airbus A320 family aircraft. During expansion phases, aircraft shortages or peak seasons, the firm
provides airlines with wet lease alternatives. As a partnership with various local and international
airlines such as Sun Express, Sky Airlines, Lufthansa group. In the field of low cost and charter,
Avion Express is characterized by its scalability as well as cost effective business model (Sabaitytė
et al., 2020).

SmartLynx Airlines
Airbus A320, A321 and Airbus A330 aircraft are operated by SmartLynx Airlines, which is a
Latvian ACMI and charter carrier. Clients from all over the world, including Europe, Asia, Africa,
rent seasonal and long term ACMI rentals from it. Such as high-capacity passenger services and
cargo conversions, the airline is notable for its fleet utilization flexibility. Avia Solutions Group is
the global leader of aviation services conglomerate and it is also a subsidiary of the above (Mincė,
2024).
10

ASL Aviation Holdings of Ireland


ASL Airlines Belgium, France, Ireland are many airlines under the control of the Irish aviation
asscat in continental Europe, Asia, Africa. ASL Aviation Holdings is the Irish asscat. ACMI along
with freight service to the worldwide integrators, which includes FedEx, Amazon and DHL. The
firm has a diverse fleet of ATR turboprops and Boeing 737s and 757s. As a large global reach and
good partnership, ASL is an indispensable logistics promotor to the express and e-commerce
industries (Coates., Kelly, 2022).

1.3 SmartLynx Airlines SWOT Analysis

International partnerships and rising profitability allow SmartLynx Airlines to benefit from
the strong operational growth and a diverse fleet, so SmartLynx Airlines has a positive reputation
in the cargo and ACMI sectors. However, it has got strategic problems because it is very much
dependent on wet-leasing agreements and it’s very poor in terms of people knowing about the
customer brand. This includes growing freight business, financing sustainability and technological
innovation, as well as pursuing potential new markets, including the Middle East and Latin
America. The other external areas of concern are increasing fuel costs, regulatory hurdles and
increasing competition in ACMI market (Lursoft, 2025).
With consistent financial development, SmartLynx Airlines is a resort to hold a strong
position in the aviation area because of their ability to adopt a versatile fleet, astute international
consorts with major carriers and are proficient in ACMI and cargo operations. The internal
problems of the airline are low end-user brand identification, an overreliance on third party
contracts, and danger of operation due to very uniform fleet structure. SmartLynx airline’s
prospects include expansion of cargo business, entering in growing markets, the use of more
environmentally friendly aircraft technologies and digital transformation to increase operational
performance. External issues which may influence service quality are rising fuel prices, increased
competition among the ACMI industries, complicated international rules and possible staff
shortages (Vrublevskyi., Врублевський, 2024b).
The SWOT analysis has been conducted using the data collected from previous studies,
journals and from the supervisor and experts from SmartLynx Airlines.
11

Table 1.2
SWOT Analysis of SmartLynx Airlines (Created by author)
Strengths Weaknesses
 Strong presence in ACMI and cargo  Heavy reliance on wet-lease (ACMI)
operations. contracts
 Diverse and expanding fleet including  Operational dependency on a specific
Airbus and Boeing aircraft. aircraft family.
 Strategic global partnerships with major  Vulnerability to seasonal and client-based
airlines (e.g., IndiGo, TUI, DHL). demand fluctuations
Opportunities Threats
 Expansion of cargo services, especially in  Volatility in fuel prices and economic
E-commerce conditions.
 Entry into high-growth regions like the  Intensifying competition in the ACMI and
Middle East and Latin America cargo market
 Adoption of fuel-efficient aircraft and  Regulatory challenges across multiple
sustainable practices jurisdictions

The SWOT analysis illustrates various sectors such as Strengths, Weaknesses,


Opportunities and Threats which is designed in Table 1.2.

Strengths
Integrating cargo and ACMI (wet lease) market, SmartLynx Airlines has attracted solid
reputation as a good company able to provide its customers with reliable services in different
destinations and in a flexible way. By providing the Airbus A320, A321, A330 and Boeing 737
MAX 8 in its growing and diverse fleet, the airline is able to respond to the various market
demands. In 2023 it had almost €496 million in revenue and the number of flights increased by
48%. The wider clientele is strengthened through strategic partnerships with airlines such as
IndiGo, TUI, DHL and SAS. In the long run, the airline’s competitive advantage in the niche
aviation markets is a result of its fleet diversification, financial stability and scalability (Samunderu,
2024).

Weaknesses
The company is largely dependent on ACMI contracts so a significant part of its revenue
stems from outside airline clients, even though the company has expanded. Since the business relies
on this, it is vulnerable to changes in demand particularly during periods of slow demand or
turbulence in the global markets. Moreover, the company keeps the brand identity out of
consideration as customers usually fly under the names of partner airlines rather than that of
12

SmartLynx. Meanwhile, its increasing fleet puts it at risk of supply chain or maintenance problems
should its operational emphasis are placed on Airbus models. These inherent restrictions impacted
on the long-term independence of the brand with its long-term brand strength (Prentkovskis et al.,
2025).

Opportunities
SmartLynx has a great opportunity to supply more of its cargo solutions like air freight and
e-commerce logistics demand grows all around the globe. Entering growing markets in the Middle
East and Latin America might provide access to expanding clients and new cooperation prospects.
The airline can cut operational expenses and meet sustainability goals due to fuel-efficient aircraft,
for example its Boeing 737 MAX 8. Further efficiency had from digital transformation projects
such as real time logistics tracking, predictive maintenance or automated personnel scheduling.
This could make it more competitive and bring about new sources of income (Diallo, 2025).

Threats
In the highly volatile industry where SmartLynx operates, gas prices are rising, inflation or
geopolitical events are quickly affecting demand and costs. The ACMI market is becoming more
competitive owing to the emergence of new competitors as well as the entry of existing ones,
resulting in an extension of pricing and contraction of contract margins. Because it also operates in
many countries with different legal and safety requirements, the airline navigates through complex
regulatory systems. Rapid expansion results in overwork and possible crew shortages of its human
resources, causing the quality of services to be lowered. If risks such as these are not met with, they
may inhibit the company’s growth rate or hit a profitability wall (Samunderu, 2024).
13

2 Analysis of SmartLynx Airlines Supply Chain Management

During this internship it has been found that SmartLynx Airlines manage their supply chain
very well especially throughout its operation, it is well structured for cargo flexibility and also for
ACMI operations. Major ways were identified to enable rapid expansion were by implementing
lean inventory and maintenance planning, effective use of fleet and strong supplier connections.
Moreover, it turned out that logistical coordination in the central area and digital technology were
major enablers of costed and responding within their operating frame. To fulfill flawless supply
chain, SmartLynx Airlines have coordinated the Inward, Inventory Management, Outward and
logistics departments perfectly (Sigurjonsson et al., 2023).

2.1 Logistics Flow of SmartLynx Airlines

The process begins with the Inward stage, where parts are received into the central store
based on a Purchase Order (PO) for supplier purchases, Service Order (SO) for internal
maintenance requests, or Delivery Note (DN) accompanying shipments. Once received, parts go
through Inventory Management, where they are binned into designated locations, logged into the
OASES stock management system, and matched against relevant documents to ensure accuracy.
This ensures real-time visibility and traceability of stock levels. When parts are required at aircraft
bases, the Outward process is triggered using an SO or DN, where items are picked, packed, and
dispatched. Finally, the parts are sent to Outstations, the remote aircraft maintenance bases, where
they are used to support operational readiness and aircraft maintenance activities (Alomar & Jacob,
2025).

Figure 2.1 Process Flow of SmartLynx Supply Chain System (Created according to author
according to Alomar., Jacob, 2025)
14

Figure 2.1 illustrates the process flow diagram of SmartLynx supply chain system which
includes inbound of shipments, maintaining inventory and dispatch.

2.1.1 Inward Flow Process of SmartLynx Airlines

The inward process is the acquisition of things for the central repository or warehouse.
Delivery may be according to Delivery Note (DN), Service Order (SO) or purchase Order (PO).
The purchase orders are generated by procurement request to include items of a supplier, i.e., to
confirm and track. The others create a service order to request some kind of services or components
by Engineering or maintenance teams. A delivery note is a list of the items with accompanying
quantities that are delivered together with the cargo. This ensures that each product that is delivered
is recorded and documented and qualified. The incoming shipments from suppliers and the
SmartLynx technic has been entered into OASES as put away after thorough inspection and
quantity matching. Location has been allocated to the parts according to the category as Rotables,
Chemicals and Consumables (Diallo, 2025).
The aircraft component delivery to SmartLynx Airlines begins with the arrival of
components alongside a Purchase Order (PO), Sales Order (SO) or Delivery Note (DN). The papers
serve to check whether arriving components align with their scheduled shipments. SmartLynx
Airlines examine new components upon their arrival to check their alignment with the paperwork
which serves quality confirmation purposes. They follow verification procedures after which the
components become ready for proper inventory placement. Sufficient monitoring and
accountability function at the supply chain's beginning during this phase.

2.1.2 Inventory Management Process of SmartLynx Airlines

The inward process is the acquisition of things for the central repository or warehouse.
Delivery according to Delivery Note (DN), Service Order (SO) or purchase Order (PO). The
purchase orders are generated by procurement requests to include items of a supplier, i.e., to
confirm and track. The others create a service order to request some kind of services or components
by Engineering or maintenance teams. A delivery note is a list of the items with accompanying
quantities that delivered together with the cargo. This ensures that each product that is delivered is
recorded and documented and also qualified. An inventory matching happens in every 3 months 6
months to ensure the variance in stock difference is below the limits (Bogdane et al., 2019).
15

The inbound process begins when SmartLynx Airlines obtains the aircraft components and
the necessary documentation of the PO, the SO, the DN. It confirms the precision and sincerity of
the incoming cargo. Upon arrival the components are immediately checked and compared to the
supporting documentation in order of compliance and quality control. After validation, they can be
allocated to the assigned inventory locations. This phase ensures enough supervision and
accountability at the beginning of the supply chain.

2.1.3 Outward Process of SmartLynx Airlines

It is an external method for assigning some parts of the warehouse to outstations. Service
Orders (SO) make the requests or have Delivery Notes (DN) that accompany the request. The
request for the components or the services from within departments is a formal SO. The Delivery
note ensures that the items of the sent has been physically conveyed to the destination. The items
are chosen and packed per request, then recorded for oversight and responsibility. Then it is in this
way that the implementation takes place quickly and helps to work on maintenance at the remote
places. The request for parts is receiving through E-mail which are categorized to different
categories such as Routine, Critical and AOG (Aircraft On Ground). These E-mails are categorized,
parts are picked up and packed for dispatch. Delivery Notes are created in OASES and attached to
the shipment. DHL, ARS, FedEx and UPS are the main courier partners for this (Bogdane et al.,
2019).
Once there is an order for some components required by the order, the order received
through the dashboard and email messages. When the request is verified, pertinent products are
taken out of their bins for shipping. The OASES system generates the Sales Order (SO) and
Delivery Note (DN) to keep record and approve the shipment. The packaged parts are then sent to
the reputable carriers in this case DHL, UPS, FedEx and others to the specific outstation. To
guarantee a traceable and quick supply of components, this process can satisfy the requirements of
operations.
16

3 Evaluation and Forecasting of SmartLynx Airlines's Economic


Indicators
An organization’s supply chain management (SCM) has a lot to do with its economic
development. Keeping the company's profitability long term by being profitable short term, with
other ways such as improving operational efficiency and keeping the costs in line. Good supply
chain management has fundamental aims of waste minimisation, cost reduction and efficient
enhancement. When these aims are translated into specific advantages through suitable supply
chain, the company's growth, survival and profitability continue to be improved. Moreover, the
delivery service of supply chain management is effectively guaranteed to provide customer
satisfaction with prompt and dependable service. SmartLynx Airlines has to synchronise economic
plans with methods to manage its supply chain. Such an alignment might help the airline gain
competitiveness in a very competitive and dynamic aviation sector. The basis of protecting
enduring development and competitive advantage lies in excellent supply chain management.
A SWOT analysis of the supply chain and warehousing operations of SmartLynx Airlines
was done by the intern which also exposed to many significant issues and dangers he encountered.
Specific measures to alleviate the organizational inefficiency during operational line and to create
space for organizational development were suggested by the intern. Observations of the intern at
the warehouse showed that AOG (Aircraft on Ground) shipments made up a substantial amount of
the company’s logistics expenses. Aircraft continue to be inoperative until needed components
arrive in a rapid response to AOG situations. Consequently, for AOG-related components the
warehouse staff must send them on the day it is asked. Although such an approach is important, its
implementation is logistically difficult and increases costs. The result of the intern suggests that
AOG requests and supply chain functionality should be handled with more efficiency and cost-
effective manners.
The remedies taken for the improvement of process efficiency are implementation of Dash
Board powered by Power Automate, Logitudinal Tubes and Racks and Power App usage for
tracking of the location of received shipment and these processes are given 3in Figure 3.1.
17

Figure 3.1 New methods for improving processes (Created by the author)

A lot of these outstation sites are managed by the Material Controller(s) of the airline and
they send these urgent requests in the form of E-mails. These 3 steps are taken to ensure the process
flow improvement.

Implementation of Dash-Board for Part Request Raising


The Dash-Board created by the intern, powered by Power Automate, removes the
requirement of manual email communication to manage all the aspects of material logistics in a
smooth and efficient manner. The biggest advantage of this is the ability to create systemic,
verifiable control processes of incoming and outgoing goods. Organizing all component
movements (receive, deliver, transfer or return) into one, wherever accessible, repository for
visibility to the operation and reduces human errors. Accountability of the Core/Loans Return tab
ensures prompt, documentation and return of borrowed items such as components or equipment
assigned to other stations or suppliers. Additionally, it saves aero plane maintenance from delay
due to lack of or unreturned components. The Material Request Review page collects all part
requests from internal teams. It sets up a verification checkpoint before the order is accepted, which
reduces the probability of duplicate or redundant orders and makes sure that the request for
approval is sufficient. The Pick Instruction tab controls how the components to be fitted at different
18

places are picked and distributed. It reduces delays and uncertainty by giving explicit, up to date
instructions about preparation and shipment tasks to warehouse staff.
Logistics Tracking, the central component of the dashboard, is used to monitor all part
transfers into the location, out of the location, and between stores. It facilitates the watching of a
pending or deferred item to gain full visibility into shipment status, expected time of arrival, and
any necessary paperwork, or handling.

Figure 3.2 Interface of Dash-Board for Logistics Processes (Created by author)

Therefore, the Stock Inventory tab is very important for overseeing aircraft components.
Users can allocate or withdraw from the components within the OASES system to uphold the exact
inventory balances and content with reality used in maintenance activities. The interface of the
Dash-Board has been illustrated in Figure 3.2.

Implementation of Longitude Tubes for Weeding Parts storage


The storage solution developed by SmartLynx Airlines for the new components and spares
reflects in an exceptionally effective way for the storage of large aircraft components and spares.
Big carpets find secure storage in the extended racks as well, containing a unique design with
specially made tubes that statically support big and long parts without bending or damaging. The
result is that handling hazards are mitigated ensuring component safety and availability. Labelling
and systematic categorization of part numbers help to expedited maintenance and inventory
19

assessments. By cutting down the time that goes into component searches the method increases
productivity, eliminates delays, and reduces mistakes. This arrangement ensures that there is
uniformity among teams and training for ease. This allows the racks and tubes to scale to fit future
inventory growth which is given in Figure 3.3.

Figure 3.3 Implementation of Tubes and Racks (Created by author)

The traceable storage solution has an enhanced probability of objects being misplaced or
lost as it enhances accountability. Better accessibility which integrates with safe component
protection, following the best practice helps to improve operational efficiency, safety and
dependability in maintenance processes at SmartLynx Airlines.

Power App Implementation for Received Shipment Tracking


The author at SmartLynx Airlines developed the Preliminary Record Register (PRR) using
Power App to transform the oversight of inbound products. This digital platform enables operators
to rapidly document essential shipping information, including AWB/Reference Numbers, and
20

provide photographic evidence of received items. A primary feature is the capability to scan Bin
QR codes, which swiftly associates shipments with the correct Warehouse and Bin locations, hence
ensuring accurate inventory distribution. The interface of Power App PRR is added in Figure 3.4.
All collected data is promptly input into a centralized PRR List, substituting error-prone
handwritten records with a dependable digital tracking system. The user-friendly interface greatly
enhances operating transparency with minimal training requirements. Enhanced features such as
photographic documentation and location mapping using QR codes provide unparalleled supply
chain traceability.

Figure 3.4 Interface of Power App for Shipment Tracking (Created by author)

SmartLynx Airline’s digital transformation strategy in logistics management is shown by


this unique solution. The PRR app establishes a new benchmark for shipment tracking precision,
illustrating how intelligent technology can eradicate inefficiencies in aviation inventory systems
while upholding rigorous accountability requirements.
The airline now has a scalable, future-proof tool capable of adapting to expanding
operational requirements while ensuring data integrity across all warehouse activities, attributable
to the author's installation of this system.
21

Implementation Cost for the Processes


The cost implementation plan for SmartLynx Airline’s system came under €3,000, focusing
on essential components with high ROI and these costs are given in Table 3.1.
Table 3.1
Implementation Cost for the Processes (Created by author)
Component Cost (€) Description
Longitudinal DIY modular PVC tubes + reinforced shelving
€ 1,200
Tubes/Racks (local suppliers).
Free QR generators + laminated printed labels
QR Code System € 300
(€0.10/unit).
Power App (PRR Microsoft Power Apps (free with existing Office
€0
Dashboard) 365 license).
In-house sessions (2 days, led by IT/logistics
Training € 500
staff).
Basic mounts for warehouse scanners (reused old
Smartphone Mounts € 250
smartphones).
Miscellaneous € 600 Cables, adhesives, safety signage.
Total € 2,850 Within €3,000 budget.

The savings which is obtained from these implementations are given as follows:
Projected Annual Savings: ~€80,000
 Damage Reduction (15%): €75K= €11,250 saved.
 Labor Efficiency (20%): €60K= €12,000 saved.
 Error Reduction (30%): €10K= €3,000 saved.
Total Savings: €26.250
The forecast for the next 2 years profits are shown in Table 3.2.
Table 3.2
Forecasting for upcoming years (Created by author)
Metric Year 1 (€) Year 2 (€) Notes
Recurring Savings 26,250 27,563 +5% annual growth (efficiency gains).
Implementation Cost -2,850 — One-time expense.
Net Profit 23,400 27,563 Pre-tax.
Cumulative Profit 23,400 50,963 By end of Year 2.
22

Conclusions and Proposals


23

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Appendices

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