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Dubai: Al Jaber Aviation, with a fleet of 21 aircraft on order valued at approximately $1.2 billion (Dh4.4 billion), was launched on Sunday amid the turbulence caused by recent record-high oil prices in the aviation sector.
Despite the rough year experienced by operators who were pitted against oil prices which peaked at $147 per barrel, the business aviation sector in the Middle East is growing at 40 per cent per annum, according to Al Jaber Aviation chief executive (AJA), Mohammad Al Jaber.
"The aviation sector has struggled this year. Last week an article outlined that so far this year 30 airlines have gone bust with another 20 on the watchlist," he said.
"Here in the Middle East, the sector continues to carve highly lucrative opportunities across the aviation sector, none more so that in business aviation."
The Middle East VIP charter market is worth around $500 million annually, growing at a rate of 25 per cent and the optimism in the sector was evident from the growth of aircraft movements, he said. Aircraft movement in this sector surged 46 per cent in Abu Dhabi, 38 per cent in Dubai, 18 per cent in Jeddah, 12 per cent in Riyadh and 10 per cent in Dammam, he said.
AJA would be a door-to-door service, chartering individuals, families, companies and governments seeking privacy and flexibility from its initial base in Abu Dhabi, with another base on the cards in Dubai, said chief operating officer Dr Mark Pierotti.
AJA would begin flying in February 2009 and expects delivery of all 21 aircraft in the next five years.
"I have often been asked why we decided to embark on ambitious plans to launch an airline. For me, it shows our commitment to growth and to support the strategic position that Abu Dhabi enjoys and the UAE's development as a focal point for international aviation," Al Jaber said.
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