Business | Aviation
Aviation will continue to see strong growth
The Middle East's booming business aviation sector will continue to record annual double-digit growth over the next five years, an executive flight services provider said.
- Staff Report
- Published: 01:09 March 8, 2008
Dubai: The Middle East's booming business aviation sector will continue to record annual double-digit growth over the next five years, an executive flight services provider said.
The increasing realisation in the region of the cost-effectiveness of private jet travel is fuelling the sector's growth, said Shane O'Hare, president and chief executive officer of Royal Jet.
The region's business aviation potential is encouraging new players into the market.
"Six major operators are looking to come into the market in the next few years," he said.
"Our research points to a 40 per cent annual increase in the Middle East's business aviation sector for the coming five years with Saudi Arabia and the UAE driving the momentum," he said in a statement yesterday.
"Saudi Arabia is currently leading the surge but the UAE is catching up very fast. In addition, the emerging markets of India and China will record similar growth rates and with the Middle East being central to these markets and Europe, it is well placed to serve their growing requirements," he said.
O'Hare said throughout the Middle East's expanding corporate sector there is increasing acceptance of the "potent commercial proposition" of business aviation.
"Airport congestion, security concerns and the inability of scheduled carriers to fly in a timely manner to specific destinations due to bilateral restrictions are characteristics of the commercial sector which the time-sensitive corporate traveller increasingly wishes to avoid," he explained.
O'Hare said Royal Jet has a 16 per cent share of the market and is gearing up for major expansion to benefit from increased demand.
The Abu Dhabi-headquartered firm has a five-year plan which embodies fleet growth and a major interiors overhaul.
Its plan envisages a fleet of more than 20 aircraft - up from the current 12 - with expansion mainly centred on large-to-mid-range capacity airliners.
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