Dubai: The UAE could be just a year away from implementing regulation covering grey market activities of the business aviation sector, according to one regional aviation executive.
Ali Al Naqbi, Founding Chairman of the Middle East Business Aviation Association (MEBAA), believes he is getting close after lobbying local and regional aviation authorities.
“Give it one year,” he said in an interview.
Grey market activities in the region includes privately registered aircraft conducting commercial flights and aircraft landing at airport under false or incorrect pretence, Al Naqbi said.
Business aviation is a fledging industry in the Middle East, growing by 12 to 13 per cent last year and forecast to grow by 13 to 15 per cent in 2014, according to Al Naqbi.
A number of business aviation companies are looking to establish operations in the Gulf, according to Al Naqbi, who said he has had discussions with European-based companies who are looking to switch their headquarters to the UAE or Saudi Arabia.
But regulators could be keeping them away.
Appropriate regulation
Al Naqbi said that the UAE General Civil Aviation Authority (GCAA) is not paying the same attention to business aviation as it does to commercial airlines. But he said they are moving forward in developing appropriate regulation.
“This activity exists in the Middle East at high percentage,” Al Naqbi said but declines to put a number on it.
The GCAA, and other regional aviation bodies, reportedly do not conduct spot checks on private aircraft. Al Naqbi said that although GCAA does not have the manpower to do the checks it also lacks the regulation, which he is trying to change.
He said that there is no policy or standard on what will happen if the GCAA finds an aircraft, operator, or pilot operating grey market flights in the UAE.
Saif Al Mohammad Al Suwaidi, Director General of GCAA, said in a phone interview that grey market activities do not currently come under the Authority’s mandate. However, he said the issue had been escalated to the federal government.
Realistic timeline
He agreed that Al Naqbi’s timeline of one year is realistic; however, there are some challenges.
Al Suwaidi said the Authority will continue its dialogue with local governments and the federal government to establish grey market regulation.
But growth of the grey market in the business aviation market continues to cause headaches for Al Naqbi. “It is unfortunately a disease … in the Middle East and North Africa,” he said.
Al Naqbi said MEBAA is raising awareness among passengers who might not understand that they are not insured if they fly with a grey market operator. He is also pushing to deter airports who see it as revenue generator.
“It is illegal. You will be questioned if something happens,” he said.
