Royal Jet to invest Dh450m in business jets

Dubai: Royal Jet, the Abu Dhabi-based executive flight services company, will upgrade and refurbish its five Boeing Business Jets (BBJ) at a cost of Dh450 million, a top Royal Jet official announced at the Dubai Air Show.

Shane O'Hare, president and CEO of Royal Jet, said: "It will be the most technologically advanced Boeing Business Jet in the world."

He also mentioned a possible upgrade worth up to $15 million (Dh55 million) on a major new maintenance facility to be built at Abu Dhabi International Airport.

"This will have full MRO [maintenance repair and overhaul] capabilities, so we will be able to undertake third-party maintenance. It is expected to be operational at the start of 2011."

However, he noted that this move will enhance company growth as well since quality is a key driver in the increase in demand for their aircraft.

O'Hare added that although Royal Jet has only seen two per cent growth this year, compared to 30 per cent in 2008, it's still growth.

"Business has grown in a declining market, therefore clearly increasing regional market share.

"Other aspects of the business, including our brokerage service, aircraft management, medical evacuation services, Saudi initiative and fixed-base operations [FBO] are all making significant contributions to the financial health of the company," he said.

O'Hare told Gulf News that demand in the UAE market is great and he is expecting 2010 to be an excellent year for Royal Jet in terms of boosting profitability and world standing.

However, he added that the Saudi market is far bigger and its demands are higher.

"The recently implemented alliance with Arabasco, the kingdom's premier FBO provider, created strategic hubs in Jeddah, Riyadh, Madinah and Yanbu as well as Royal Jet witnessing an increase in revenue there of over 40 per cent," he said.