Business aviation companies in Dubai are in a positive mood as they see signs that growth will return, as long as wider tensions in the region ease.
Empire Aviation Group (EAG) has seen fleet size remain static for the past two years, managing director, Paras Dhamecha, told AIN. “Our managed fleet currently comprises around 20 aircraft, including large business jets, with four Gulfstream G650s, seven Bombardier Globals [including a 6000, added in May of this year], along with a Falcon 7X, a Falcon 900DX, five [Embraer] Legacys, and one Hawker 900XP,” he said. “We also have a Falcon 900 DX and a Challenger 300 under management.”
He said he is seeing more prospective buyers considering the opportunity to acquire aircraft. “This is leading to transactions. We are certainly seeing more activity now than we did last year. The market is stabilizing, helped by lower valuations for aircraft and some inventories starting to dry up.”
He said a 2010-12 Legacy 650 is now selling for between $10 and $12 million, compared to an original sale price of around $25 to $28 million. “OEMs are rationalizing their production, and we are seeing that preowned prices are starting to stabilize. We have had three aircraft on sale for several months and now have letters of intent to enable us to complete these sales.”
The situation in Nigeria, an important location for EAG, had not improved. “We are managing fewer aircraft there now. However, we are fortunate to have a very stable long-term customer there, but we do not expect the market to change for the foreseeable future.”
Holger Ostheimer, managing director of Dubai's DC Aviation Al-Futtaim (DCAF), is celebrating 20 years of the DC Aviation Group, and, during Dubai Airshow 2019, six years of operations at Al Maktoum International Airport (DWC).
“We've seen, through the summer, with its seasonal variation, a very quiet period," he told AIN. "Otherwise, [in September] you can tell the traffic is returning. Everybody seems to be coming back home and picking up activity, with an increase in [movements] on the flying side as well.”
Jetex Flight Support’s Dubai FBO operations prospered this year, Adel Mardini, founder and CEO, told AIN. “We saw growth of more than 5 percent in 2018, compared to 2017,” he said. “This year, I expect to see more than 10 percent growth.”
More travelers were arriving in Dubai, which was becoming a destination, he said. “I believe government regulations, especially the removal of visa requirements for Russian, Kazakh, and Chinese visitors, encourage people to come here. The infrastructure and ecosystem the government is building support our work here. Dubai has become a destination for major events, summits, and business.”
