Region's premier luxury carrier aims for $500m turnover in five years

The news came as Royal Jet, the Abu Dhabi-headquartered luxury VIP flight services provider and GCC business aviation pioneer, disclosed details of a specially-commissioned 'state-of-the-industry' report, which credits the Middle East business aviation sector with achieving a compound annual growth rate (CAGR) of 40%, in terms of aircraft movements and fleet growth. Furthermore, the value of the region's charter market has achieved 23% annual growth over the past two years.

The report - which was compiled by an international firm of strategic consultants and collated from intensive research and data supplied by operators, airports and airframe suppliers - is the first qualified analysis of the Middle Eastern business aviation market to be produced.

"The future is looking extremely good," said Shane O'Hare, President & CEO of Royal Jet, which operates the world's largest BBJ (Boeing Business Jet) fleet. "Royal Jet's five-year plan is a highly pro-active response to the wealth of opportunities available."

Royal Jet has recently expanded its current fleet of executive jets with the addition of a fifth BBJ; and Steve Hill, President of Boeing Business Jets added "Boeing has a long-standing relationship with customers in the Middle East, especially with Royal Jet, the largest Boeing Business Jet operator in the world. We look forward to helping Royal Jet as it grows its fleet."
The report says the double-digit CAGR in regional aircraft movements are Abu Dhabi at 46% and Dubai at 38% recorded between 2003 and 2007; Jeddah at 18%, Riyadh with 12% and Damman with 10% in the three-year period 2004-2006; Amman with 37% from 2000 to 2005; Bahrain at 25% from 2002-2004; and Sharm-El-Sheikh at 11% from 2002-2005.

"With growth in the Emirates achieving CAGRs which outpace even the surging markets of Asia, Royal Jet has an exceptional opportunity for significant business advancement," said O'Hare.

The report estimates the Middle East charter market is currently worth US $500 million a year, with business mainly emanating from Saudi Arabia, which accounts for the lion's share of the market, and the United Arab Emirates, with a market valued at around US $176 million.

The Middle East's charter market, it continues, is also characterised by large airframe dominance with a balanced profile of regional and inter-continental destinations. The region's charter fleet is broken down by aircraft size into 40% devoted to the light and mid-sized range; 29% for the super mid-size, heavy and regional range; 27% to VIP airlines and 4% to ultra, long-range airliners.

The report also confirmed Royal Jet as the Middle East's largest charter supplier with a 16% market share.

"Over 50 per cent of our business is currently emanating from the GCC but given the roadmaps pinpointed by this research, our five-year plan is looking further towards the horizon," explained O'Hare.

Royal Jet's five-year plan also envisages a fleet of more than 20 aircraft, most of which centre on large-to-mid-range capacity airliners.

"We will also be focusing heavily on our aircraft management service, which recently gained a significant boost with the recent deal to operate a luxury, long-range Gulfstream GIVSP on behalf of a GCC national owner," said O'Hare.

"Further negotiations are currently under way with other individual owners. We intend to devote serious effort and resources to ensuring Royal Jet becomes the preferred operator for private owners."

In readiness for its five-year expansion onslaught, Royal Jet has progressed a major management restructuring, hiring in best-of-breed expertise from around the globe.

"This includes boosting our regional presence, particularly within the sales arena, and the hiring of industry specialists with the knowledge and know-how to live up to our shareholders' expectations," said O'Hare.

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