International trip-support provider, Dubai-based Hadid, is investigating a number of new international FBO locations, as the Covid-19 pandemic creates the conditions to launch new businesses at the bottom of the cycle.
“We’re already looking at two or three locations,” said commercial director Issa Zuriqi. “We’re in discussion with the authorities and hopefully these operations will materialize before the end of 2021. We’re looking into locations in Asia and Africa. The outside world is eager for business. It’s the right time. We don’t see this situation lasting forever.”
Recent operating conditions have, however, made for a difficult time. “In the last year, we have been adapting,” he said. “Everyone has been affected by the pandemic, but when one door closes, other doors open. We are involved in many businesses through aviation. It’s not just one service that we offer, but we have suffered through losing some of the scheduled airline operators.”
Zuriqi said the charter business had been booming. Echoing anecdotal evidence from other players, he said there had been significant migration by first and business class passengers to business jet charter, with scheduled passenger travel decimated by Covid-19. “Many [people] started traveling on charter where they used to fly first or business class,” he said. “Now, with the commercial airlines flying less or not flying at all, they have the option of flying on business jets, and the charter business has grown.
“Out of 10 trips taken by first or business class passengers, we see three-to-four now made on chartered flights. The smaller aircraft are [slightly] cheaper than the big business jets. Even with fuel stops on their way, for example, from Dubai to London, they don’t mind stopping in Turkey or Greece. On a smaller business jet, costs are definitely less. We’ve seen more demand in those categories."
European charter has also done well, as premium travelers count on smaller private jets. “We’ve seen several charter flights moving into Europe from here, and within Europe. I know restrictions are getting more difficult, but there is a thriving business in Europe, and for Europeans coming to this region. Operations into the U.S. are a bit slow from here, but there are no visa restrictions. People still can fly.”
Increases in cargo business have helped shield the company from the loss of other operations. “We have helped many airlines to move their cargo, whether it’s PPE (personal protective equipment) or general cargo all around the world, as well as foodstuffs from Africa to the world, and vice versa,” he said. “We work with many airlines on ad hoc operations. We have helped move PPE from China to the world.”
Medical cargo, in particular, has increased. “We have participated in many deliveries of vaccines from all around the world. As vaccinations have been rolled out more widely, we have been working closely with operators flying medical cargo routes to transport different vaccines to where they are needed."
As for other companies in the region, a slump in airshows and events has not helped. “Unfortunately, EBACE will not be going ahead in 2021, but they are planning a virtual program in its place during EBACE week, so we should hopefully still see some related news and aviation announcements in May. We are hopeful NBAA-BACE will still go ahead, but things can change overnight.”