Business | Aviation
Executive aircraft fleet expected to jump 20% next year
The number of business jets currently in operation in the GCC is expected to grow by 20 per cent to 300 next year from this year's 250, said a top official.
- By Saifur Rahman, Staff Reporter
- Published: 00:00 November 20, 2005
The number of business jets currently in operation in the GCC is expected to grow by 20 per cent to 300 next year from this year's 250, said a top official.
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Shaikh Ahmad said that about 250 private jets are operating in the GCC and he expects to see 300 next year.
"Dubai alone recorded growth of 51.9 per cent in the first half of the year," he said. "Three of the region's six business jet operators are located at Dubai International Airport."
ExecuJet Middle East is one of the Dubai companies.
According to Mike Berry, managing director of ExecuJet, interest in private air travel is booming. "Corporate travel has been a success after 9/11," he said. "You know who your crew is. You know your pilots."
The region's business jet market is estimated to generate revenues of Dh376.10 million ($102.24 million) per year, according to Winsome Resources' Aircharter Guide.
"The Middle East is the fastest growing market for executive aviation with a 7.9 per cent growth rate for the next 20 years," said John A. Sandwick, managing director of Encore Management S.A. and director of Bahrain-based Bexair.
"Compound annual growth rate (CAGR) for the Middle East business jet fleet is estimated at 8.5 per cent for the period of 2005-2015," he said.
The region is estimated to have recorded 15,000 flight hours last year, he added.
"This will exceed 17,658 next year, and will reach 36,798 in 2015."
Sandwick credits the increasing wealth of high net worth individuals, strong economic growth driven by high oil prices and excess liquidity for the growth in the sector. But Shaikh Ahmad warned the business aviation operators that scheduled carriers would also be eyeing parts of their business.
"As the industry grows, so will the competition, but that's something we in the Middle East thrive on, believing it develops the market more quickly and it is interesting to note that key regional banks are now becoming more open to the financing of private jets."
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