Royal Jet president and CEO Shane O'Hare this week predicted that the regional market for private jet travel would grow at 6-8% in the region this year and next, with Royal Jet itself forecasting 15% growth this year.
Both figures are well ahead of the 2-3% annual growth forecast for business jet travel predicted by the Federal Aviation Administration (FAA) for the next 20 years.
O’Hare was speaking at the Global Aerospace Summit in Abu Dhabi on April 16-17, which he hailed as a success for the industry and the emirate. “We had two days of informed discussions with leading experts from the global aerospace community,” he said. “The Summit covered a great deal of useful ground on critical issues of air safety, air traffic congestion and airport capacity.”
He said there was a need to take into account the requirements of VIP customers when planning airport investment and infrastructure. “Major airports need to either encourage private investment in the development of improved Fixed Base Operation facilities or invest in their own infrastructure as this sector grows,” O’Hare said.
“I am surprised at the basic standards offered by many airports worldwide for private jets. Some major airports process VIP private jet customers through airline terminals, which defeats the primary reasons for private jet travel: speed, security and privacy. Even the provision of adequate parking for business jets needs to be factored into investment plans.”
O’Hare told delegates that he predicted more consolidation at the smaller end of the private aviation sector due to competitive pressure. At the higher end of the market, the quality of product and service delivery would determine which companies survived and thrived, he said.
“Some people believe the private jet industry is driven by price, but I believe that the keys to success are product and service,” he told the audience at a panel session on business aviation. “Price is a factor, certainly, but the future belongs to those operators who excel at product and service delivery.”
The Royal Jet CEO said the private jet market could spawn the development of global alliances among operators, along similar lines to those in the commercial airline sector. He said that regional growth in private jet travel would need to be supported by more high-quality Fixed Base Operation and maintenance, repair and overhaul facilities.
The Abu Dhabi-based international luxury flight services company, chaired by His Excellency Sheikh Hamdan Bin Mubarak Al Nahyan, earlier this week announced a 15% increase in first-quarter revenue over the same period last year – the best Q1 performance in the company’s history.
Article Source : Arabian Aerospace
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