{"id":9863,"date":"2023-11-06T06:00:35","date_gmt":"2023-11-06T06:00:35","guid":{"rendered":"https:\/\/aviation-news.info\/?p=9863"},"modified":"2023-11-06T06:00:35","modified_gmt":"2023-11-06T06:00:35","slug":"dubai-still-in-pole-position-as-gulfs-core-business-aviation-hub","status":"publish","type":"post","link":"https:\/\/aviation-news.info\/?p=9863","title":{"rendered":"Dubai Still In Pole Position As Gulf’s Core Business Aviation Hub"},"content":{"rendered":"
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Air aviation news – Strong revenues from elevated oil prices and its position as a magnet for personal and corporate wealth continue to make Dubai the Middle East region\u2019s pre-eminent hub for business aviation activity. That fact is quite apparent at this year\u2019s Dubai Airshow, with new facilities opening at the Mohammed Bin Rashid Aerospace Hub (MBRAH) at Al Maktoum International Airport, most notably the new ExecuJet FBO adjacent to the existing VIP terminal, which the airport\u2019s CEO Tahnoon Saif described as state-of-the-art.<\/p>\n

\u201cThey are putting the final touches to the FBO facility and lounges,\u201d Saif told AIN in a pre-show interview. \u201cThe [Dassault ExecuJet MRO] hangars are ready and will add capacity to the area. It\u2019s an important element that will increase the number of movements.\u201d<\/p>\n

Eager to encourage competition and diversity in service providers, Saif indicated that Jet Aviation\u2019s plans could include a new maintenance, repair, and overhaul facility at MBRAH. \u201cWe\u2019d love to see their MRO here, and an expansion for widebody [aircraft],\u201d he said. The group, which is part of General Dynamics and a sister company to business jet manufacturer Gulfstream Aerospace, already has MRO capability at Dubai International Airport for smaller private jets.<\/p>\n

Meanwhile, Empire Aviation Group (EAG) already has started the development of a new facility next to the VIP Terminal that will offer office space, luxury food and beverage outlets, and a rooftop lounge for events. \u201cThe agreement is a land lease, with the development to their plans and requirements,\u201d Saif explained. \u201cWe look forward to them finishing the facility. There is demand for office space and retail close to the VIP terminal.\u201d<\/p>\n<\/div>\n

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\"VIP<\/div>
The VIP terminal at Al Maktoum International Airport is a hub of activity for UAE business aviation. (Renedering: MBRAH)<\/figcaption><\/figure>\n<\/div>\n
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According to EAG, the multipurpose business facility sits in a prime location. It consists of the company\u2019s new global corporate headquarters and houses operations control and continuing airworthiness maintenance organization [CAMO] teams for all group operations, plus a crew check-in and briefing area. \u201cWe anticipate breaking ground before the end of this year with the opening scheduled for around the end of 2024,\u201d managing director Paras Dhamecha told AIN.<\/p>\n

Official figures put the total number of business jet movements at MBRAH at more than 15,400 in 2022. Saif reported that in the first half of 2023, the airport saw about 7,300 business jet movements.<\/p>\n

Ali Alnaqbi, founder and executive chairman of the Middle East and North Africa Business Aviation Association, expects still more growth. \u201cToday, Dubai\u2019s near-term goal is 20,000 movements,\u201d he told AIN. \u201cPeople\u2019s trust in the Middle East is growing, especially in the UAE, while demand is growing in Saudi Arabia.\u201d<\/p>\n

At the same time, the management of MBRAH wants to participate in the new wave of urban air mobility that could see new eVTOL air taxi services. The airport and the UAE\u2019s General Civil Aviation Authority (GCAA) already have\u00a0signed an agreement with infrastructure specialist VPorts to develop what it calls an \u201cadvanced air mobility integrator world center.\u201d Local company Air Chateau International, which operates helicopters, also has set its sights on eVTOL operations.<\/p>\n

\u201cAir Chateau International has sourced one helicopter, in September, and two more are expected before the end of this year. Their helipad can also be used by other operators,\u201d MBRAH\u2019s Saif said. \u201c[They] have an aggressive business plan, to be executed this year. They are building hangars and securing the helicopters.\u201d<\/p>\n

Building on the MRO service footprint already at MBRAH, Saif now seeks to attract a company focused on VIP aircraft cabin completions. As part of the mix of commercial airline and business aircraft MRO operations at the airport. Lufthansa Technik now performs aircraft maintenance, operations, and repairs there.<\/p>\n

\u201cI\u2019m trying to bring in at least one completions player because an area like MBRAH needs to have the fundamentals of each vertical: a paint shop, a completions center, and a landside MRO component,\u201d Saif said. \u201cThe paint shop is secured, but a completions center has not as of now been set up; we are trying to combine the efforts being made on the land side to create this value proposition.\u201d<\/p>\n

According to Saif, investments from international companies and the government in MBRAH already have totaled about $820 million since the airport opened. \u201cMBRAH\u2019s share will be mainly infrastructure, at 30 percent of that figure,\u201d he said. \u201cBy 2026, I\u2019m expecting we will be up to about $1.6 billion. We are expecting more investment in the next three years from our clients. In later years, it\u2019ll grow even more.\u201d<\/p>\n

Saudi Arabia Now Back in Bizav Growth Mode<\/b><\/h2>\n

As dynamic a market as Dubai and its neighboring emirates are for the business aviation sector, some players want to diversify across the wider Gulf region. \u201cOur UAE operations are being consolidated to provide a single-point interface for our clients with seamless coordination between aircraft management, FBO, MRO, and parking services,\u201d Hardy B\u00fctschi, Jet Aviation v-p for Middle East regional operations and general manager for Dubai, told AIN. \u201cWe are exploring the significant growth opportunities in Saudi Arabia and we fully support the country and its Vision 2030 [strategy],\u201d he commented.<\/p>\n

At MEBAA, Alnaqbi believes the chill imposed on Saudi business aviation after the anti-corruption drive in 2017 is coming to an end. \u201cI think Saudi Arabia is on an upward curve,\u201d he said. \u201cThey\u2019re going to hit the numbers that used to be flying before the oil crisis of 2014-15, and the Ritz-Carlton issues [in 2017]. I\u2019m expecting the Kingdom to continue growing at higher rates than in the past. I see nothing but healthy growth in Saudi Arabia, and we are supporting them 100 percent.\u201d<\/p>\n

Jet Aviation continues to grow its line maintenance footprint in Abu Dhabi and Jeddah, mainly to support sister company Gulf-
\nstream. \u201cIn Jeddah as well as in Riyadh, we are expanding our line maintenance capabilities and AOG footprint under GACA-145 and FAA repair station approvals in the Kingdom for the Gulfstream G-IV, G-V, G550, G650, BBJ, ACJ, and CL604, with the G700 to be added soon,\u201d B\u00fctschi said. \u201cAdditionally, we have extensive battery and wheel shops in Jeddah and Riyadh. We introduced MRO services [at OMDW] back in 2016 and are currently offering line maintenance and AOG services seven days a week.\u201d<\/p>\n

EAG\u2019s Dhamecha said its aircraft management division continues to expand with the addition of a Boeing Business Jet and an Embraer Legacy 600 to its UAE registry, as well as a Bombardier Challenger 604 to its Nigeria fleet. \u201cWe will take another aircraft under management, late this year or early 2024,\u201d he said. \u201cOur charter fleet currently consists of the BBJ, Global 7500, three Global 6000s, one G650, two Legacy 650s, and one Legacy 600. Charter demand continues to be strong and we are seeing more interest in longer leasing periods.\u201d<\/p>\n

According to the Dubai-based group, aircraft sales transactions, charter bookings, and revenue have all remained firm. \u201cThere is strong international interest across all our services\u2014aircraft management, aircraft sales, charter, and CAMO\u2014from various sources, including wealthy individuals and families, corporates, and government,\u201d he said. \u201cWe are consistently registering high double-digit growth, year on year. The prospects for 2024 look equally positive across all service lines.\u201d<\/p>\n

Global FBO group Jetex now has 37 facilities and three operations centers around the world today. CEO Adel Mardini said the company still hopes to reach 50 FBOs in the future. \u201cCovid took two years,\u201d he told AIN. \u201cI need another two years. Today, my target is 2025, or 2026. I will achieve it, I have no doubt.\u201d<\/p>\n

The company has prioritized FBO acquisitions over organic growth, and, in certain locations, prefers 100 percent takeovers to joint ventures, as it now has the funds to do this. \u201cThis will help the network to grow,\u201d he said. \u201cOur targets are mainly in Europe but also involve Africa, the Middle East, and Asia. We don\u2019t want to go beyond these regions.\u201d<\/p>\n

AIN\u2019s requests for comment from UAE government officials on the effort to make sustainable aviation fuel (SAF) available at UAE airports during the COP 28 environmental summit opening on November 30 did not yield a response. However, Jet Aviation offers book-and-claim at its Middle East FBOs as an alternative, by decoupling physical flows from carbon-reduction benefits.<\/p>\n

Business aviation support group UAS co-founder and CEO Omar Hosari said the uptake for SAF in the region remains low, despite efforts to encourage it. \u201cThe major obstacle is that operators need to know that once they make the switch, SAF will be widely available to them globally, as well as being affordable,\u201d he told AIN. \u201cUnfortunately, right now this is not the case. We would be delighted to see the Middle East become a production hub for SAF and lead the charge and set an example for the entire world to follow.\u201d<\/p>\n

Returning Demand for New Private Aircraft<\/h2>\n

Simon Davies, sales director for the UK, Middle East, Africa, Turkey, India, and Eastern Canada with aircraft financing group Global Jet Capital, noted that following the disruptions of the Covid pandemic, he had started to see demand for financing return to the region as the market becomes more robust with more owners electing to upgrade their aircraft.<\/p>\n

\u201cWe received many inquiries specifically related to owners who have purchased or were in the process of acquiring a new aircraft where their deliveries were scheduled for 2024 or even into 2025,\u201d he told AIN. \u201cBased on this data, we expect the robust market in the Middle East will continue in 2024 as owners sell their existing aircraft to take delivery of their new aircraft.\u201d<\/p>\n

Middle Eastern buyers have shown a strong preference for new aircraft over the past decade-plus, he believes. He expects that trend to continue, noting that only Europe accounts for a higher percentage of new deliveries between 2023 and 2027.<\/p>\n

\u201cOverall, we expect healthy growth in new deliveries all around the world, and the Middle East is part of that growth story,\u201d Davies said. \u201cIt should be noted that the preowned market will also be strong in the region at a projected 70 percent of transactions. As a financier of new and preowned aircraft, Global Jet Capital keeps a close eye on both segments of the market.\u201d<\/p>\n

DC Aviation Al Futtaim VIP Terminal celebrates its tenth year of operations at MBRAH this year and considers Dubai the preeminent location in the region. \u201cIf you look at business aviation, I think it is safe to assume that Dubai remains the hub in the Middle East,\u201d Holger Ostheimer, managing director of DC Aviation Al Futtaim VIP Terminal, told AIN.<\/p>\n

source: https:\/\/www.ainonline.com\/aviation-news\/business-aviation\/2023-11-05\/dubai-still-pole-position-gulfs-core-business-aviatio<\/a>n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Air aviation news – Strong revenues from elevated oil prices and its position as a magnet for personal and corporate wealth continue to make Dubai the Middle East region\u2019s pre-eminent hub for business aviation activity. 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