Business | Aviation
Business aviation sector waiting to see effects of global slowdown
Britain's BAE Systems targets Middle Eastern market as impact of global crisis intensifies in Europe and US
- By Natasha Marrian, Staff Reporter
- Published: 23:29 November 17, 2008
Dubai: It is too early to determine how the global financial crisis would affect the business aviation sector, aerospace company BAE Systems said at Middle East Business Aviation on Monday.
"To be fair, we have to wait and see. The business aviation sector has traditionally been more robust than the commercial sector because of the nature of the business and the people in it. It is too early to say what effects we are going to see but we are bound to see effects," said BAE Systems sales director, Andy Whelan on the sidelines of a press briefing.
BAE Systems is targeting the buoyant Middle Eastern market as the European and US markets slow down. The Middle East and Africa already have almost as many aircrafts and customers as the European market, Whelan said.
BAE operates ten aircrafts and has seven customers in Europe, with nine aircrafts and six customers in the Middle East and Africa, one aircraft and one customer in the Americas and in Asia BAE have three aircrafts and three customers.
Whelan said the Middle Eastern market was also attractive because it is yet to establish itself in the aviation sector.
"At the moment many of the flights are long haul in this region and there is huge potential for regional flying in this market," he said.
Most commercial fleets in the Middle East also contained mainly wide-bodied aircrafts therefore; aircrafts such as BAE's Avro Business Jet would do well.
The option to lease a plane also made it possible to enjoy the service without spending large amounts on purchasing the aircraft.
"The aircrafts airfield performance is renowned and this enables the ABJ to get in and out of difficult airports denied to other jets but which are much closer to the end destination and clients want to reach and with the added advantage of more privacy," he said. "For instanceABJ has recently been flying into and out of dirt and grass airfields in Africa with elevations of 6000 feet and runway lengths of 3000 feet."
The ABJ has been very sought after by governments, high net-worth individuals, companies and charter organisations.
There are 25 ABJ's in th market, either in service or under conversion.
Recent BAE deliveries to the region include an ABJ to the Bahrain Defence Force in April this year. The Dubai Air Wing also acquired their first RJ85.
Share this article
More from Aviation
More from Business
Popular in Business
Business Editor's choice
-
Sweet life in the Middle East
A sweet look at the confectionary industry in the UAE and Middle East
-
Passion for pets can be expensive
Responsibility and time spent add to costs for furry friends
-
Facebook farm game under cloud
Mobile phone contracts can be used to buy virtual money
-
General
Precious jump
Gold prices at new high as India's central bank buys $6.7b worth of gold
