26

SECTOR FOCUS: FBOs SECTOR FOCUS: FBOs

LSYKLQER]FIPMIZIXLI1MHHPI)EWXPEGOW½\IHFEWI Toperations (FBOs) in quantity, no one can dispute the quality of the one’s they do have. FlyCorporate’s Jason Zappa Janse and Rob SeamanXEOIEGPSWIVPSSOEX½ZIXSTRSXGL FBO providers.

A user’s

Speaking from an FBO or service and support perspective for business aviation – the Middle East has been challenged in its ability to provide the variety and number of corporate designated travel facilities equal to the demand. As many in the FBO world have learned, the “Build It and guide to They Will Come” mentality is really more Hollywood folly than proven business acumen.

Truth is, most FBOs around the world sell 150% of their capacity and hope that only 75% show up at any given time. For many, they work NYWX½RIXLEX[E]ERHSRP][MXLWYWXEMRIHERHGSRWXERXHIQERHMW FBOs in the the option for developing new facilities triggered. Let’s face it – in XLI*&3FYWMRIWWQSWXSJ]SYV[SVO¾MIWSJJMRXSXLIWYRWIX¯ ½KYVEXMZIP]ERHPMXIVEPP]

Constant demand in the Middle East has driven those in the aviation support Middle East world to move forward on developing new, purpose-envisioned facilities.

Gama Aviation 28

SECTOR FOCUS: FBOs

As with anywhere else in the world, access is the which facilitates the passage and security of VIPs OI]½VWXWXITXLIFM^EZKY]WLEZIXS½KLXEXQSWX and heads-of-state – the company’s predominant airports. Although there still exist airports where target audience. there presently is not an FBO as such, but more a case of shared terminals with VIP designated areas ’s AUH services range from standard ground JSVFM^EZ)\TERHIHERHRI[EMVTSVXWEVITVSZMHMRK handling to exterior and interior aircraft cleaning. the opportunity to rise up and bring in additional TVMZEXIEMVGVEJXXVEJ½GERHGVIEXIXLIWTIGM½GTYVTSWI Last year, the company also signed a memorandum designated and designed facilities that have become the of understanding (MoU) with Airports norm around the world. 'SQTER] %(%' [LMGLSTIVEXIW½ZIEMVTSVXW throughout the Emirate. Looking at the Middle East FBO market as whole, industry analyst Brian Foley says “FBOs should show The MoU enables the company to develop an FBO steady growth since the Middle East has established at Al Bateen Executive (AZI). A company statement itself as both a business center and technical fuel stop indicates that planning and development are well to other parts of the world,” he says. “This growth underway, and completion of operations is targeted will accelerate in later years as Eastern Hemisphere for Q4-2015. Facility layout includes two BBJ economies eventually improve.” LERKEVWXSXEPMRKGPSWIXSWUJXEQEMRSJ½GI administration and MRO facility, an FBO of 8600 sq As one can easily assume, the majority of FBOs are ft and ample customer parking space. congregated where airports are booming, economies EVI¾SYVMWLMRKERHFYWMRIWWEZMEXMSRMWWSEVMRK2SX Door-to-door at Al Bateen surprisingly, the United Arab (UAE) has Also on the AZI premises is aviation services plenty. Several international FBO providers have TVSZMHIV(LEFM.IXXLIEMVTSVX´WSJ½GMEP*&3KVSYRH established locations throughout the country and, not handling company and MRO services provider. AZI surprisingly, most of them are located in the three is the only exclusive business aviation airport in largest cities: Abu Dhabi, Dubai and Sharjah. XLI1)2%VIKMSR0MOI%9,%>-HSIWR´XLEZIWPSX restrictions. The airport’s ramp capacity goes up to A royal service 90 business aircraft – though planning is underway to First on our list is Royal Jet, located at Abu Dhabi expand this to 120 – and 284,920 sq ft of hangarage, International (AUH). Only a 20 minute drive from the city capable of parking 17 jets. center and a 50 minute drive from Dubai, the company says it is “positioned at the crossroads of the world.” As the only FBO on the airport premises, DhabiJet prides itself on being a single-point of contact for all Jointly owned by Abu Dhabi Aviation and the requirements, and on offering the fastest possible Presidential Flight Authority, Royal Jet not only door-to-door transit time for passengers and crew. The operates an FBO at AUH, but is well-known for company recently opened an Executive Gourmet, 8300 STIVEXMRKXLI[SVPH´WPEVKIWX::-4GSR½KYVIH¾IIX sq ft catering facility adjacent to its FBO facility, which of Boeing Business Jets. According to a company is staffed around the clock with highly trained chefs. statement, through its fully dedicated executive terminal, combined with the absence of slot ADAC has invested substantially to upgrade the restrictions at AUH, Royal Jet is able to guarantee a airport’s amenities, including new equipment, 40-minute turnaround time for scheduled stops. improvements to the terminal and landside access and parking. In 2013, the company handled 887 aircraft movements, divided between 597 Royal Jet Only 50 minutes down the road from Abu Dhabi ¾MKLXWERHTVIWMHIRXMEP¾MKLXWVITVIWIRXMRK is Dubai, which has been the center of attention an 18% increase on 2012. The Abu Dhabi FBO in the business aviation realm for quite some time has 32 landside staff in total, including drivers, – predominantly due to runway closures at Dubai housekeepers, waiters and gardeners. The FBO International (DXB) and the opening, enhancing also has Royal Jet security personnel onsite, as and expanding of the UAE’s largest aviation hub, Al well as a customs and an immigration department, Maktoum/Dubai World Central (DWC). DhabiJet 30 31

SECTOR FOCUS: FBOs SECTOR FOCUS: FBOs

What can easily be noted is that both DXB and DWC have multiple FBO 7IXYTEWETVS½XGIRXIV[MXLMRXLI5EXEV%MV[E]W 2SXI[SVXL]EW[IPPMWXLEXXLIMVQEMRXIRERGIJEGMPMXMIW service providers on site, such as Jet Aviation and ExecuJet, both well- Group, the plan from day one was to build rapidly on at DXB and DWC are approved to conduct scheduled established names in the aviation industry, along with DC Aviation-Al Futtaim MXWMRMXMEP¾IIXSJXLVII&SQFEVHMIVEMVGVEJXMRSVHIVXS maintenance packages on Bombardier, Gulfstream, and Jetex. tap into the Middle East’s growing demand for executive Embraer and Hawker aircraft by the UAE General Civil XVEZIP3ZIVXLIPEWX½ZI]IEVWXLISRGIWQEPPGLEVXIV Aviation Authority (GCAA) and the European Aviation Showing off at Sharjah operation has evolved into a world-class corporate Safety Agency (EASA). At Sharjah International (SHJ), the only FBO on premise is UK-headquartered jet company with a comprehensive business aviation Gama Aviation. The company opened its brand-new lounge facility earlier this service portfolio, comprising not just worldwide on- ExecuJet operates two other FBOs in the region, one in summer. According to Sharjah General Manager Richard Lindveld, “It was built demand charter, but also Airliner charters, FBO and Riyadh, Saudi Arabia, and one in Istanbul, Turkey. from the ground up by the Gama Aviation management team, with contributions 1EMRXIRERGIWIVZMGIWEXXLI±&SQFEVHMIV%YXLSVM^IH from our London headquarters and the UAE regional headquarters, meaning that Service Facility” in Doha. The company’s Riyadh facility is located in the private a multitude of combined skills have shaped an FBO from the perspective of being aviation terminal at King Khalid International (RUH) an operator, a crew member and, most importantly, a VIP passenger.” 8SQE\MQM^IXLIMVKVS[XLTSXIRXMEP5EXEV)\IGYXMZIMW – approximately 21 miles from the city center – and investing into its infrastructure and building a stand-alone MWSTIVEXIHMRTEVXRIVWLMT[MXL2EW.IXXLITVMZEXI “In essence, we have used the more than 30 years’ experience we have in state-of-the art private jet lounge and a dedicated hangar EZMEXMSRHMZMWMSRSJ7EYHM%VEFME´W2EXMSREP%MV7IVZMGI operating aircraft and visiting FBO’s around the world and have tailored this facility at Hamad International at Hamad International The private aviation terminal at RUH has a large ramp to what we believe caters to every conceivable need of crew and passengers,” (DOH) in Doha. While already in partial use, the entire with ample space to accommodate many wide-body he continues. facility – in particular the FBO addition - will be considered corporate jets. complete and fully operational in the early part of 2015. 0MRHZIPHXJYVXLIVI\TPEMRWXLEXXLIPSYRKIMWEOMRXSE½ZIWXEVLSXIP[MXLIZIV] According to a company statement, ExecuJet’s Riyadh detail considered, “even down to smells and sounds, in order to make it a special ExecuJet and Jet Aviation: veterans in the fi eld location is a true market differentiator, due to its high environment for the ultra-high net worth individuals travelling through Sharjah.” ExecuJet arrived in the Middle East in 1999, when it service standards, attention to detail and the fully trained IWXEFPMWLIHEFEWIMR(YFEM9%)FIGSQMRKSRISJXLI½VWX and experienced FBO team. According to Lindveldt, the most remarkable difference between operating an FBO DhabiJet independent companies to offer business aviation services MRXLI1MHHPI)EWXERHSRIMRXLI97SVMR)YVSTIMWXLEXXLITVS½PISJTEWWIRKIVW in the region. The company has two locations in Istanbul – one at is generally different. “A high proportion of the passengers moving through the Istanbul Atatürk (IST) and one at Sabiha Gökçen (SAW) Gama Aviation Sharjah FBO are heads of state and royalty,” he explains. “There are obvious cultural 8LI½VQVIGIRXP]EHHIHJYPPEMVGVEJXLERHPMRKERHPMRI – which are both operated in partnership with local differences we [also] need to take into account – we have prayer rooms and ablution maintenance services to their DXB location. “We are aviation services provider Bilen Air Service. facilities in the building, and we take great care in ensuring we have food and beverage pleased to welcome business aviation clients back to within the FBO lounge that suit different tastes from around the world.” DXB,” says ExecuJet Middle East Operations Director At IST, ExecuJet’s operation is located in the GA Mark Hardman. “The airport remains the ideal drop-off terminal and features two refurbished lounges, one for Another aspect Lindveldt notes are the extreme summer temperatures. “We and pick-up location for clients with limited time in Dubai, passengers and one for crew. Other amenities include also have to take measures to look after our clients and staff,” he says. “This is EW[IPPEWXLSWIGSRRIGXMRKXSGSQQIVGMEP¾MKLXWSYXSJ a meeting room, concierge services, customs and in the details, such as using sun umbrellas for VIPs, welcoming guests with cold the country.” immigration, private parking, catering, and hotel and towels and refreshments, and providing suitable clothing for our engineers and transportation services. ramp staff working outside.” “As general aviation parking will remain limited at Dubai International, we expect demand to remain strong at our According to ExecuJet Group FBO Director Mark The only challenge of establishing an FBO in the Middle East that Lindveldt can FBO at Al Maktoum International, Dubai World Central as %FFSXXWIVZMGIPIZIPWTEWWIRKIVXVEJ½G¾S[ERH think of is something he considers to be an advantage as well: “We have employees well,” he adds. procedures are much the same in the Middle East as in of about 15 different nationalities, so initial training has to be comprehensive Europe when it comes to operating an FBO. “Culturally, to ensure everybody is on the same page, communicating well and delivering a ExecuJet get bragging rights too - their FBO facility at of course, there are many differences,” he explains. “For consistent level of service,” he says. “Apart from that, I imagine we experience DXB is presently the largest business aviation terminal in example, in the Middle East, most FBOs have access to many of the same challenges other FBOs have in other parts of the world!” the Middle East. The terminal includes eight lounges and prayer rooms.” EWTEGMSYWEVVMZEPW^SRI[MXLKYIWX³QIIXERHKVIIX´EVIEW Investing in infrastructure duty-free shopping, VIP parking and convenient limousine The strong foundation and smooth running of ExecuJet’s In July of this year, Qatar Executive – Qatar Airways’ business jet arm – reached drop-off and pick-up access. operations throughout the Middle East is due to its local a milestone by celebrating their 5th anniversary. The formation of the corporate partnerships and professional relationships. “We have NIXWYFWMHMEV]¯5EXEV)\IGYXMZI¯[EW½VWXERRSYRGIHMREXXLI4EVMW The ExecuJet FBO facility in Dubai Al Maktoum carefully chosen partnerships with companies known for Air Show. This growth was a planned part of the airline’s global strategy and International Airport at Dubai World Central (DWC) is their local expertise,” says Abbott. “Bilen Air Services is continued commitment to the Middle East business travel community. Today a the only transit lounge available to business aviation clients an established ground handling and operations company JYPP SJXLIMV¾]MRKMWGSRWMHIVIHHIHMGEXIHGLEVXIVEGXMZMX] 7IIEPWS5EXEV at DWC. It includes a VVIP passenger lounge, crew lounge, MR8YVOI]ERH2EW.IXMR6M]EHLMWEPIEHIVMR7EYHM Executive – taking private jet services to a new level, p. 34). washrooms and showers. private aviation.”

Gama Aviation 32

SECTOR FOCUS: FBOs

For Jet Aviation Saudi Arabia Vice President and General Manager Alain Champonnois, the biggest challenges of establishing an FBO in the Middle East primarily involves adaptation to a completely new environment.

The value of local partnerships is something Champonnois also makes a priority. “The aviation operations and airports in Saudi and the Middle East are very professional,” he explains, “but one has to build relationships and establish trust within the local community, all of which takes time and is compounded by a )\IGY.IX language barrier.”

Fortunately, when Jet Aviation Saudi Arabia was established 35 years ago, the company’s brand, name and fame – predominantly due to its maintenance and completions center in Basel – was already well-known and well-spread throughout the world. “As a result, we had some trust leverage and a few existing contacts, which helped a great deal,” Champonnois says.

“Our reputation in Saudi Arabia similarly helped us in the Middle East. Still, we [IVIXLI½VWXGSQTER]XSWIXYTER*&3MRXLI/MRKHSQSJ7EYHM%VEFMEERH the learning curve was high,” he continues. “There were labor laws to learn, authorities to develop working relationships with and, of course, we had to entice expats to move to Saudi Arabia with their families — and help them adjust to living in a completely new environment.”

With three locations throughout the Kingdom, the company is well-aware of )\IGY.IX the differences between operating an FBO in the Middle East and Europe or the 97±(MJJIVIRGIWKIRIVEPP]VI¾IGXGYPXYVEPHMJJIVIRGIWMRGPYHMRKPERKYEKIWX]PI ERHTSPMXMGEPW]WXIQW²'LEQTSRRSMWGSR½VQW±;LIVIEWXLIGSQQSRPERKYEKI spoken in Europe is English, it is Arabic in the Middle East, particularly in Saudi Arabia. As with any language barrier, it takes more time and energy to become familiar with local customs, policies and procedures — and more time to build trust locally. This, of course, also implies more risk.”

±-XMWWEJIXSWE]XLEX[ILERHPIXLIQENSVMX]SJXVEJ½GMR7EYHM%VEFMETEVXMGYPEVP] through Jeddah and Riyadh,” he concludes. “Our facility in Medina tends to have more seasonal peaks.” (To read more about ExecuJet and JetAviation, see also Jet Aviation in the Middle East and Asia, p. 38, and ExecuJet – dispelling the myths of FM^EZMRXLI1MHHPI)EWXT 

Moving forward These FBOs, like the majority of those that are authentic and fully dedicated, are clustered within only three of the 18 countries in the Middle East. Undoubtedly, Jet Aviation prominent countries such as Qatar, Bahrain, Yemen and Oman will certainly EGORS[PIHKIXLIFIRI½XWSJIWXEFPMWLMRK½\IHFEWISTIVEXMSRWMRXLIJYXYVI

As with anything, growth only comes with the promise of sustainment and stability. With the average cost of a simple, modest FBO running easily in the tens of millions, the leap into development has to have some sound rational behind it.

;MXLXLITVSNIGXIHRYQFIVWERHKVS[XLMRXLI1)2%VIKMSR¯GSYTPIH[MXL the fact most current aircraft in private use are large or wide-body – there is no question more facilities and support providers are needed and will come forward. But as we all learned in recent history – these things can take a sudden and bad turn if global social or economic issues shift and change. We just have to support those who move forward today – especially if we expect them to take the next step.

Jet Aviation