Abu Dhabi: The private aviation business in the Middle East is expected to experience growth of 20 per cent this year, aviation experts said on Tuesday at the Air Expo held at the Al Bateen Executive Airport for the first time in Abu Dhabi.
"It's definitely growing," James Coak, commercial manager at Rotana Jet Aviation, said. "The Middle East has seen growth along with Asia…and as a company, we've already achieved our goals."
Rotana Jet Aviation is one example. The private jet operator, launched in February last year, has been providing its services of one aircraft flying an average of 60 hours per month. This year, it expects its order of three new aircraft to be delivered in April and August. "It has been a very good year for us," he said.
Abu Dhabi Aviation, which has been around since 1976, expects a 20 per cent increase in its business across the board.
Government clients
Abu Dhabi Aviation currently has 54 helicopters and three aircraft with contracts in 13 countries. In the UAE, the company has contracts with the Abu Dhabi police, the military and Abu Dhabi Marine Operating Company (Adma-Opco).
However, for many companies, while business is good, the market is growing more competitive.
"In the past few years we were the only company providing helicopter services," Khalid Mashhour, project and marketing manager at Abu Dhabi Aviation, said. "Today, new companies have come online."
Mashhour said that today the company is trying to expand its private jet services to VIPs which, he said, is going to be a very important segment of the market in future.
"There are people who come to Abu Dhabi on business and then need to go to Dubai for a meeting and need to leave in two hours and they can't afford to stay for a whole day," he said. "It's saving time and saving money, especially for VIPs."
Royal Jet, an Abu Dhabi Aviation company, achieved a 226 per cent surge in net profit for 2011, the company announced this week. The company has been in operation for only eight years.
At Al Bateen Executive Airport, which is dedicated to private aviation business, former military hangars are being refurbished and transformed into civil aviation hangars as more operators are flying in and out of the airport.
Organic growth
"This year, we'll continue to finish the refurbished hangars. We're working on seven at the moment," Steven Jones, general manager of the airport, said.
There are currently six local aviation companies listed at the airport.
"This year, we expect an expansion certainly in Jet Aviation and Rotana Jet," Jones said. "We would be surprised if we didn't have at least three or four new companies based here," he added.
"The GCC-based business aviation operators are still growing. Internationally, it's all been slower because this area is still growing… and that's what you call organic growth," Jones said.
He added that there's capacity, high standards of service and growth in technical stops. "We're in the right place, we've got capacity and we have a good product."
In 2011, 115 new operators used the Al Bateen Executive Airport, Jones said. In 2012 he expects the commercial aviation movement to increase by at least 10 per cent.
Hangar leased long-term
Meanwhile, the Abu Dhabi Airports Company (ADAC) concluded a long-term land lease agreement with Falcon Aviation Services (FAS) at Al Bateen Executive Airport, where FAS commissioned a new 10,000 square metre hangar to support its corporate helicopter and private jet charter and MRO business.
ADAC also signed another lease agreement with R-Offices to provide Grade A serviced offices to businesses at the airport. The Public Private Partnership (PPP) project will enhance the range of office space on offer to the business aviation industry, including aircraft operators, in-flight catering and investment companies, as the airport experiences continued strong growth in aircraft traffic and its tenant base.
