The European Cockpit Association plans to publicly call on European regulators Friday to close what it describes as a loophole allowing airlines to avoid labor laws by hiring pilots and cabin crew through outsourcing agencies instead of direct employment.
The practice is widespread in the ACMI sector—aircraft, crew, maintenance and insurance leasing, commonly known as wet leasing—where airlines outsource entire flight operations during periods of high demand or capacity shortages.
“Crew are disposable, a number in the system. You can get rid of them with a day’s notice,” ECA Secretary General Ignacio Plaza said in a statement to Reuters, arguing the model leaves workers vulnerable and weakens accountability across the industry.
Concerns have intensified following the sudden collapse of Latvia-based ACMI operator SmartLynx Airlines last October, which left hundreds of pilots and cabin crew hired through staffing agencies without jobs and, in many cases, without final paychecks.
Former employees told Reuters the airline routinely directed workers to apply through third-party agencies rather than be hired directly, a structure that complicated employment protections and severance obligations.
SmartLynx had been one of Europe’s largest wet-lease operators, supplying aircraft and crews to carriers including SAS, IndiGo and TUI Airways. The company reported a fleet of 68 aircraft in 2024, according to a March 2025 corporate announcement.
Its parent company, Lithuania-based Avia Solutions Group, sold SmartLynx last October for 1 million euros ($1.16 million) to a Netherlands-based investment fund formed only a month earlier, alongside two SmartLynx executives as minority owners. At the time of the sale, the airline carried 238 million euros in debt, much of it owed within the Avia Solutions network.
The airline ceased operations in November, along with subsidiaries in Malta and Estonia. The former chief executive did not respond to requests for comment, and contact details for the Dutch investment fund were not publicly available.
Reuters reviewed employment contracts showing provisions that allowed salary reductions, immediate termination and limited employer obligations. One contract issued by Dubai-based staffing firm Aerviva stipulated that disputes would be settled under English jurisdiction. The company told Reuters it was unable to issue final paychecks because it did not receive required documentation from SmartLynx.
A 2025 University of Ghent study found nearly 14% of more than 4,000 pilots surveyed were not directly employed by airlines, with 65% working in ACMI operations. Those workers reported higher job insecurity, worse mental health outcomes and greater reluctance to report fatigue.
“This is not only about one airline,” Plaza said. “It is about whether Europe allows airlines to operate with workers who are essential in practice but invisible when responsibility is assigned.”
