Saudi commercial charter operator Sky Prime Aviation Services has set itself a goal of almost doubling fleet size to 35 aircraft by the end of 2020, as the business aviation climate in the kingdom continues to improve.

“Maybe we could reach in 2020 hopefully no less than 30 to 35 aircraft, between owning and managing,” Capt. Mamdooh Mokhtar, CEO and vice president of flight operations, told AIN in an interview at the Saudi Airshow at Al Thumamah Airport in Riyadh March 14.

“As you know, the region has a large number of aircraft owned by either small operators or people with their own aircraft,” he said. “We are targeting them, because we have a very good infrastructure plan for services, such as fuel arrangements, ground handling, and all those requirements that are going to reduce the costs on aircraft owners or small operators by introducing economies of scale. We are targeting these segments of the aviation industry in Saudi Arabia, and also in the region.”

He indicated that the focus of the company in the next two years would be bringing managed aircraft into the fleet as well as buying new aircraft for ownership.

“This is one of the things that we are focusing on. Sky Prime is undertaking a very deep restructuring plan on the term [lifespan] of our aircraft. We are trying to modernize the fleet. So basically we are going through several discussions around the world with the aircraft manufacturers on how to renew the fleet, if needed, with new aircraft. So hopefully 2019 or 2020, we'll have plans we can reveal.”

Today, Sky Prime operates a fleet of 20 aircraft, of which 16 are owned and four are managed.

Mokhtar declined to comment on which aircraft manufacturers the company is in communication with today regarding new aircraft orders.

Saudi Arabia a Regional Bright Spot

Asked to comment on the general state of business and general aviation in the Kingdom today, and what the next 12 months could bring, he hinted that Saudi Arabia would take a preeminent position in the aviation affairs of the six-member Gulf Cooperation Council, which also includes the UAE.

“At the Saudi Airshow, we do find that the government and the organizers of the show have put Saudi Arabia in the lead now,” he said. “We did not think that the show would attract so many businesses and people to Saudi Arabia. But on the first two days, it was marvelous, with the number of people attending very high. Several companies contacted me at the airshow.

“I think the show is a very good start for the aviation industry in Saudi Arabia. I'm anticipating the creation of a new Saudi Arabia, especially with young people joining the industry now or entering the market. This is a very attractive market for manufacturing and that type of thing.”

He implied that Saudi Arabia is about to turn a corner, after political developments in the Kingdom over the last 18 months led to a marked decrease in the number of aircraft in operation.

“At the moment, we are recovering strongly. Things have started moving forward. The government is supporting us in all aspects of the business. So business is back again. On spending in the second half of 2019, we'll be back on track. 2020 will see industry growth.”

Originally both parts of the same company, Sky Prime and Alpha Star went their separate ways in 2018. Today, each company handles different aspects of the charter business in Saudi Arabia.

“[Owner Saudi sovereign wealth fund] The Public Investment Fund has elected to segregate the companies,” he said. “[Alpha Star] will be serving the government sector, while Sky Prime will be focusing on the commercial side, on supporting the aviation industry. So basically, this is the focus behind the new organization, and I think it will be serving both companies' interests better than to be joined together, because otherwise they would face a number of conflicts of business interests.”

Asked to characterize the type of missions Sky Prime’s aircraft undertook and the kind of clientele that used its services, he singled out high-net-worth individuals and government officials.

“We have individuals from the higher income segment, up to government level—authorities, princes, or commissions,” he said. In Saudi Arabia, authorities and commissions are government entities overseeing specific sections of the economy.

“Basically we are focusing on that side, and we are trying to attract more people from those segments. That's why the airshow has helped us to get more of a refocusing for the company, service levels and the procedures by which we are serving our clients.”

Mokhtar is pleased with the development of the FBO sector in the kingdom, largely the result of PrivatAir Saudi Arabia’s (PASA) mandate to develop private terminals at airports in Riyadh, Jeddah, and Dammam. “It's a good effort,” he said. “We have a good restructuring plan on the FBOs and we are working very hard to partner with the FBOs to forecast the market and improve it in the near future.”

Sky Prime is one of only six aviation companies in Saudi Arabia with a Part 121 Special Unscheduled air operator's certificate (AOC). The others are Saudia Private Aviation (SPA), Aviation Horizons, NasJet, PrivatAir Saudi Arabia, and Haya Aviation Services. 

As to the competitive landscape in Saudi business aviation, while the current state of the market meant no new players were required, he said that fresh market entrants could be needed next year. “In 2019-20, I think that what we have now is good enough to serve the industry. Based on the forecasts, in 2020, the industry may need restructuring, if there's a [requirement] for additional aircraft.”