Jetex Aims for 50 FBOs Globally by 2020

Jetex operates or has contracts to construct 29 FBOs worldwide and plans to open its 50th such facility by 2020, CEO Adel Mardini told AIN last month. Of the 29 existing Jetex FBOs, three are in Spain, five in Morocco, and one each in Dubai and Paris, and the company’s footprint will be entirely global by 2020, he added.

“Between owning and management we have 29 [FBOs] now. We are targeting 50 FBOs by 2020. I believe this would be a good number to maintain the Jetex service level. We like to be in a niche position, [rather than] a mass position, everywhere” he said.

Such a global network would provide "major synergies," he noted, adding "We are giving one discount, one [type of] service. The customer likes to make one phone call to arrange everything, and this is what we are doing in trip planning and as an FBO operator.”

Regional Success

Business aviation in Dubai is slightly static today, Mardini reported. “I would say the situation is stable. In the first four months of this year, we had in Dubai the same business as we had last year. I believe the business will grow, especially now that we see oil prices at $73-$74 per barrel. Our business is connected to the oil industry. People flying business jets are connected to the market. I am very positive on growth… for the second half of the year because of the change in the fuel price.

“Business in the UAE and Dubai is very good. This is a major destination in the Middle East and North Africa. Dubai has very solid infrastructure. This is why we maintain good growth here. I understand they [Dubai South] are building Runway No. 3 now and then they will go to No. 2. There is some talk of four runways by 2022. By Expo 2020, a minimum of three runways will be ready. We expect our business to double during Expo 2020.”

He does not see a global recession coming, at least as far as his business is concerned. “In 2017, I had more than 40 percent growth in my operation in Miami, where I am doing flight and trip support for South America. We don't have any other plan to be in the U.S. market. Miami is an operation center only, for coordination and planning flights. We don't have an FBO”

The global trend toward chartering smaller aircraft is not reflected in the Middle East, he said. “I do see that on a global level, but not on a regional level. People [in the Middle East] flying the G550 are looking to fly the G650. I have one customer with a G450 who asked me how to change to a G550. In the region, I don't see this change, but in Europe I do.”

Jetex announced the opening of its Rome FBO, at Ciampino-G.B. Pastine International Airport (CIA/LIRA), last month. “We started operations at the end of April. This is our first gateway to the Italian market. We are going to add more locations… because we see good potential. Milan and Rome are among the top 10 destinations in Europe,” he said.

Mardini said Jetex is doing well on the continent. “In Spain, I have Barcelona, Malaga, and Madrid. I have Paris. I have Rome. I will have around 20 locations in the pipeline by 2020."

He identified China as a market that “needs a lot of strategic development," but noted, "I am very optimistic about the Chinese market.”

Jetex is operating existing government VIP terminals in Morocco until it completes its own FBOs. The company recently finalized the design for the new terminal in Marrakech, Mardini said. The facility will be nearly 1,000 sq m and have access to the ramp and immigration. The company plans an official opening by April 2019.

“We believe Marrakech is one of the top destinations in the world for [high-net-worth-individuals]. There are not too many commercial flights to Marrakech. This is why we can have good business volume. Marrakech had 4,000 movements last year, while the entire Moroccan airport network had 11,000 movements, so you can see that something like 40 percent of the business is coming there.

At its Casablanca facility, the company has installed new fittings and furniture in the exit lounge. In Rabat, it is refreshing the new facility that has been handed over from the airport authority. At Dakhla and Agadir, it has its own plans on the ground.

Even Gulf Cooperation Council countries outside the UAE are on the radar. Last November, Oman Airports Management Company awarded Jetex a contract to manage FBOs at Muscat and Salalah International Airports, the company said.

Jetex won significant market presence at Al Maktoum International Airport in Dubai when it managed, as the first adopter during a period of slow industry interest, to take half the space allocated for four common-user FBOs at the VIP Terminal at the airport, with Abu Dhabi's Falcon Aviation and Jet Aviation taking the remaining two slots.

Mardini has also said that Jetex's strong push into the Global FBO business does not signal a reduction in the importance of its flight support business.