Middle East business aviation coming into its own says UAE minister

Delivering the keynote address on the second day of the Middle East Business Aviation (MEBA) conference at Airport Expo Dubai, Sheikha Lubna told delegates: "Business aviation is really only now coming into its own as a regional industry and there are a number of factors fostering its growth. The need for flexibility outside of commercial airline schedules, the increased ease of access to business aviation facilities, the expertise in business aviation being created in the Middle East by a number of companies, and the changes in cost structure have all made business aviation a more viable sector than it was five or ten years ago."

Business aviation growth in the UAE, said the Minister, signals that the economy is in good shape but, she warned, more needed to be done to assist the sector's further development.

"Just as in a number of other industries, it's the regulatory side of the equation that has not been able to keep pace with the technological innovation, which is why countries are still negotiating air service agreements, why landing rights are still an issue hindering industry growth and why lower cost airlines are not yet serving every market," she said.

"The regulation around business aviation is still very much a grey area in the Middle East, with increased co-operation required between the civil aviation authorities in each country to ensure that business aviation traffic is not just tolerated, but welcomed and catered for."

The Minister said traffic growth in the business aviation sector in the Emirates is "extremely encouraging with more than 1,200 private flights in the UAE per month at present."

And Sheikha Lubna said business aviation growth in the country would act as a significant job creation driver.

"Just as there is an economic impact in the traffic increases boosted by new aviation services in a liberalised market, there are jobs that must be developed to meet that demand. And this touches every layer of the job market - from the pilots that fly those new routes to the staff that serve on those flights to the catering, interiors and other myriad elements of business aviation.

"It's been estimated that a US $30 million jet would result in AED 10 million of annual expenses, including salaries, airport parking, insurance, maintenance and permits, and clearly there are a number of job creation opportunities associated with that upkeep.

"So, if civil aviation authorities around the region can collaborate to foster a more efficient and streamlined, unified approach to managing business aviation regulations, we all stand to benefit," said Sheikha Lubna.

The MEBA conference was a two-day event with an associated exhibition featuring 90 companies from 20 countries and 31 business jets on display.

The on-site declared order book for the show reached some US $832 million on the second day with Airbus saying it has won orders worth US $580 million for two VIP A340 widebodied and two A318 corporate aircraft from undisclosed clients and two A320s ordered by the Royal Air Force of Oman.

"The Middle East is an important market for Airbus on the corporate jet level," said Airbus spokesman David Velupillai. "We have had interest from a number of dignitaries that include heads of Middle East and Indian carriers, senior officials of Gulf states, the heads of European corporations and others."

And the knock-on order book is expected to at least double the declared MEBA business tally with Gulf Aircraft Partnership reporting strong interest for its new 'Kestrel' turboprop.

"This has been a brilliant show for us and we have received very strong interest for 15 orders worth US$ 37.5 million," said Richard Blain, Commercial Director.

"The superb quality of visitors with genuine interest in business aviation has made it really worthwhile for us. We had a steady stream of visitors from all over the GCC, Africa and even from Europe - UK and Austria."

And Fairs & Exhibitions (F&E), which organises MEBA on behalf of the Middle East Business Aviation Association (MEBAA) said by lunchtime on Thursday (February 1) some 2,400 trade visitors had attended.

"For a brand new show, the response was encouraging in the visitor profile which included members of ruling families from throughout the Gulf, the highest echelons of corporate business from the wider Middle East and Africa, and the heads of family businesses within the GCC," said Alison Weller, Aerospace Director, F&E.