Middle East Jet Charter Operators See Uptick in Confidence
Like the rest of the world, the Gulf region suffered a setback in business aviation activity during the fiscal crisis. However, charter operators in the region have been reporting a surge in business confidence, which is translating into more flying hours.

Although charter providers form an important part of the Middle East aviation market they have faced tough times in recent years, unlike the region’s royal flights. “Royalty always had money and always will have money,” said Richard Aboulafia, vice president of analysis for Teal Group, of Fairfax, Virginia. “The entrepreneur class that was growing has obviously been hit by the downturn, though,” he added.

However, some charter operators are now reporting increased business confidence. “Business jet charter declined in the region during the global economic downturn but is now returning strongly,” said Paras Dhamecha, executive director of Dubai’s Empire Aviation Group, which has more than 20 aircraft under management and operates out of Dubai International Airport.

EAG said business-jet charter bookings had risen 12 per cent over the last year, and it has added five new aircraft to its management portfolio over the past 12 months. It also said 85 percent of charters were for business travel and 15 per cent for leisure. The fleet now includes three Dassault Falcon 7Xs.

Five EAG aircraft operate from Lagos, Nigeria and it also manages and operates a Dubai-based Hawker 800XP air ambulance service, in association with RMSI, Dubai’s first licensed air ambulance operator. When Air Works India became a strategic investor in Empire Aviation Group in 2012, Empire Aviation was established as a sister company to replicate the aircraft management services of Empire Aviation Group for aircraft owners in India. The company now also operates from Bangalore, India, where it recently launched aircraft management services to replicate the range of services delivered from the Dubai headquarters.

“We see part of our initial role as helping company and individual owners and aircraft operators in India understand the benefits of working with independent and experienced professional aircraft managers,” said EAG executive director Steve Hartley. “Most private aircraft in India are company owned and managed by an in-house operations team, which is not always very cost-effective.”

EAG manages about 20 owned private jets, operating from Dubai and with aircraft positioned in Dubai, Nigeria, Oman and India. “Our aircraft management services are the core of our regional business and we continue to attract new aircraft owners looking for professional management services,” said Hartley. “Large-cabin, long-range business jets are very popular amongst aircraft owners in the region, [who are] looking to be able to reach most major global cities non-stop.”

Al Jaber Aviation

Another player which is seeing an upturn is Al Jaber Aviation (AJA), whose five-aircraft fleet combines owned and managed aircraft (in 2014 it will take on at least two further aircraft under management). “AJA have gone through restructuring, where we have looked at every dirham spent internally and externally,” said Dr. Mark Pierotti, AJA’s COO. “We have looked at every function within the company, and we have tried to be more efficient and leaner. This has meant reducing head count but with the competition today in the industry we need to be [more] competitive. I think AJA have achieved this without diminishing our level of service.”

Commenting on today’s operating climate, he said that business has improved. “But still there are too many operators and still it is cut-throat at times. The MENA region as well as the subcontinent and the Far East remain an interesting market with different aircraft size needs. The large wider-body VIP aircraft are still our flagships. Africa has always been interesting. AJA supply frequent VIP services to West Africa. I recognise that Africa is increasingly becoming more important and AJA are focusing efforts on that region.”

Execujet Eyes DWC Move

There are other players who are finding success in the Gulf region. “ExecuJet Middle East has quietly under the radar grown the fleet to now include 17 fully managed aircraft and seven under partial maintenance management,” said Mike Berry, managing director, ExecuJet Middle East. “Of the 17 aircraft under full management, we have six available for commercial charter. ExecuJet do not own their aircraft and as such have no pending deliveries or open order book. What we are experiencing is an increased approach from aircraft owners to have ExecuJet manage their aircraft in either a commercial or private capacity.”

Berry hinted that ExecuJet was on the cusp of a decisive move to Dubai World Central (DWC) and that the Dubai Airshow 2013 might serve as the backdrop for an announcement to that effect. “[We would like to] showcase our service proposition and strengthen the message that we remain a global service provider committed to general aviation within the region. Hopefully by the time of the show we can confirm our contractual commitment to establishing a presence on DWC, as to what and when.”

ExecuJet claims a healthy mix of clientele. “Generally we find that from a charter perspective there is demand from a small light jet to a larger widebody aircraft; it all depends on the flying profile of the customers, which vary from the traditional royals or high-net- worth individuals to a growing business and tourist demand,” he said.

MRO is also a growing part of the business. “The regional services and support mirror what we offer on a global basis, however, Dubai is certainly one of the cornerstones of the ExecuJet footprint having undertaken significant growth and developed over the past 14 years,” he said. “Today we are an AMO for major OEMs [with] Rockwell Collins, Honeywell and Rolls-Royce approvals.”

Royal Jet

Meanwhile, Abu Dhabi’s Royal Jet signed an MoU in March with Al Bateen Executive Airport to expand its operations at the facility. A Royal Jet release indicated that the agreement would signal a long-term shift in operations from Abu Dhabi International Airport. “The signed MoU reflects Royal Jet’s growth and expansion plans though the gradual transition of its principal operating base to Al Bateen Executive Airport,” it said.

“Royal Jet’s operations at Al Bateen Executive Airport signify the consistent and continuous upward growth that the private jet industry has experienced in the last five years,” said Royal Jet CEO Shane O’Hare. “This supports the double-digit growth and the overall aviation strategy and is in line with Abu Dhabi’s 2030 Vision. Additionally, it complements our FBO facility at Abu Dhabi International Airport, customer demand and industry needs.”