Royal Jet announces major growth strategy to take advantage of booming Middle East private aviation market

Talking to delegates at the Middle East Business Aviation event at Dubai Airport (November 16-18), O'Hare said that whilst airlines around the world were looking to cut back during this period of economic uncertainty, Royal Jet was about to embark on a period of significant growth.

O'Hare said:

"The very fact that the amount of exhibitors at MEBA has grown this year by 175% to 244 from 30 countries, whilst 2,700 visitors have pre-registered to attend the show, demonstrates that there is still strong interest overall in the Middle Eastern market. We intend to take advantage of our proven track record by forging ahead with our plans to open more bases in the Middle East, and at the same time increase our portfolio of managed aircraft."

O'Hare added, "This will be done through a mix of our own investment and strategic partnerships and I would certainly not rule out markets further afield figuring in these plans."

He said, I will be announcing details in the weeks ahead and am certain that these developments will further enhance Royal Jet's position as the leading private jet operator in the Middle East."

"At Royal Jet we have in the main been unaffected by the current conditions, as our strategy has been one of diversification into a number of different service offerings which has protected us from the worst of the economic turbulence," he told them. "Royal Jet is still on target to meet all its business milestones."

"We have always concentrated on higher net worth individuals who in the main require VIP and super mid-sized aircraft such as Boeing Business Jets and the higher end Gulfstreams, for which we continue to see constant demand," O'Hare said.

"Indeed, brokers are telling us that there remains a shortage of aircraft available for charter that are capable of flying more than 20 people, and that we - with our fleet of five Boeing Business Jets, which is the largest such fleet in the world - are ideally suited to picking up much more business," he added.

O'Hare said, "At the same time, it is clear that the largest demand from the Middle East for VIP charters is from the GCC and at Royal Jet we are therefore ideally placed to service this growing market. We are growing our operations in these markets with a bigger local presence to ensure we are regarded as a highly localised operator."

"The market for smaller jets is still substantial." O'Hare told his audience. "However the economic downturn across the globe that we have recently been witnessing means that many corporates are rethinking their expenditure in a number of different areas. This is part and parcel of any cyclical market where overheating is then followed by a period of correction. The market for private aviation services is no different and so this could affect the amount of corporate charter jet business available in the future."

The delegates were told that Royal Jet's acquisition strategy was on target to operate around 20 aircraft by 2012 and 50 aircraft by the year 2020, with a preponderance of VIP and super-midsize aircraft in its fleet.

"We have one of the healthiest balance sheets in the industry and we have strong liquidity as a company; and our global experience in this industry is now second to none. We have shown steady profits ever since our second year of operations. Our strength as a business is due to the decision we made a long time ago to diversify our service offerings, and this strategy is paying dividends now, during these difficult economic times," O'Hare continued.

"For instance, we have one of the most efficient and successful medical evacuation services in the Middle East which makes an important contribution to our bottom line. We also run a highly successful Aircraft Management and Acquisition Consultancy, and I have been greatly encouraged even over the last few weeks by the number of fresh enquiries we have had from owners wishing to partner with us in the management of their aircraft. We also have a maintenance and repair (MRO) facility and one of the world's top Fixed Base Operations (FBO) facilities, located at Abu Dhabi International Airport and which was recently voted Best in the Middle East," added O'Hare.

"We will soon be enhancing our capabilities in Abu Dhabi and greatly welcome the new private aviation facility to be opened at Al Bateen - the new City Airport of Abu Dhabi. All of these facilities will help us maintain price competitiveness across the Gulf as well as allowing us to have full control of the guest experience from airport arrival to embarkation to ensure our high service levels are maintained," O'Hare said.

"What this all goes to show is that Royal Jet's business is based on a sound footing and that our initial strategy is proving its worth in being able to see us successfully through leaner times," Shane O'Hare concluded.