Dubai: Russians, pinched by a falling rouble, are tightening their budgets and spending less on private travel, according to one regional based corporate jet firm.
David Edwards, executive vice president of Qatar Airways’ corporate jet division Qatar Executive, said in an interview on Monday that demand from Russian travellers has dropped off in wake of the Rouble crash.
The Rouble, under pressure from western sanctions over Russia’s involvement in Ukraine and a plummeting oil price, has fallen by 44 per cent against the US dollar since July.
“Sanctions have obviously impacted pretty much every business jet operator and manufacturer so I think it’s fair to say the world has seen a decrease in Russian-based activity,” Edwards said.
The drop in the rouble is felt by most of the six Gulf Cooperation Council states, including the UAE and Qatar, which peg their currency against the US dollar, making travel to the Gulf more expensive for Russians.
Falling oil prices is also adding to the woes of the Russian oil-dependent economy. Global benchmark Brent crude, trading at $66.16 a barrel early afternoon on Monday, is down by 42 per cent since June.
Edwards said Qatar Executive was not feeling the pinch but that it “should not be that surprising” sanctions have led to a drop off in Russian private jet flyers.
“We’re not reliant on the Russian market. We’ve moved away from being reliant on any particular market at any one time,” he said.
Qatar Executive, which recently signed an agreement for 20 Gulfstream private jets, is seeing a strong demand for travel to South Africa and the United States.
Edwards declined to say when it will receive its first Gulfstream 650ER, one of aircraft types signed in the order agreement, while the other aircraft, the Gulfstream G500, will start delivery in 2018.
Qatar Executive, based out of Doha, operates a fleet of 10 corporate jets and maintains a base in Hong Kong.
