Alliance Aviation Eyes Growth in Saudi Arabia

Alliance Aviation, which recently opened the first general aviation hangar at Saudi Arabia’s AlUla International Airport (OEAO), is hoping to build out the site as a central general aviation facility that accommodates other aviation businesses as the company eyes expansion into other locations, according to CEO Brendan McQuaid.

During a panel at the Irish Business and General Aviation Association’s International Business Aviation Conference last week in Kildare, Ireland, McQuaid called that move “the beginning of Alliance Aviation in the kingdom, and from there we’ll hopefully develop into other airports on the west coast.”

In late October, Alliance Aviation announced it opened a hangar and FBO facility at OEAO in partnership with the Royal Commission for AlUla, which is in western Saudi Arabia. The 30,677-sq-ft hangar provides space for two Gulfstream G650s and either a Bombardier Challenger 650 or two light jets.

Alliance Aviation had been in Saudi Arabia for seven years, primarily as a charter service provider for a couple of clients, McQuaid said. It had unsuccessfully bid for Red Sea International Airport services but was already closely aligned with the airport manager DAA International, which also manages Dublin International Airport.

“We found the DAA International was very supportive, and then AlUla came up,” he said. “We tendered for the hangar there.” Noting that Alliance Aviation took the “keys” to the facility in October, McQuaid expects the facility to be fully operational in January. 

Alliance Aviation plans to expand its Part 145 to the Saudi location. Along with a line maintenance base, the company is establishing a rapid response rig, a “big truck” or motorhome, that can dispatch to AOG situations. The truck will be fully equipped so it can remain on location for an extended period. AlUla provides a central location for that activity, with proximity to airports along the west coast.

Noting that the move into Saudi Arabia took about a year, he said. “It’s not an easy task. It took…a lot of money. So now we've learned the footfalls, we want other companies to come in and for AlUla to become the number one GA airport in Saudi Arabia. We’re providing a service of administration of everything from office setup to licensing with GACA, which is the civil aviation authority regulation.”

For Alliance Aviation, Saudi Arabia presents a completely new opportunity. Earlier this year, Saudi Arabia lifted cabotage restrictions, enabling foreign charter operators to offer domestic flights, and Vista became the first approved operator in August. “It’s really opened up for foreign companies to come in and do business,” he said.

There are challenges, he conceded, such as taxes on hires. “There’s a lot of pros and there are a lot of cons, but when you navigate through the difficult parts, you’ll find that it’s rewarding when you complete your license. Then you’re in a position to get contracts to apply for tenders.”

He acknowledged to AIN that Alliance Aviation had been asked why Saudi Arabia, rather than a more developed business aviation location such as the UAE. “Saudi is in its infancy now. It’s really just beginning. It’s brand new. There’s not enough infrastructure there to support the Vistas and Flexjets. They’re all going in…but the infrastructure is not necessarily there. There is no line maintenance for GA.”

McQuaid highlighted the importance of getting a foothold now: “We’re going to be one of the first. If you go to America, you’re the last. If you come to Europe, second to last; UAE, third to last. Saudi Arabia is the beginning. We are the first.

“There’s lots of potential there,” he continued. “There’s 35 million in Saudi. There are no railroads to connect the cities. The only way is flying. So there is a huge market for corporate jets.”

While Alliance Aviation has worked closely with the DAA with its FBO in Dublin and the DAA supported its efforts in the Kingdom, “We actually don’t work together at the moment in Saudi Arabia. We’re independent companies,” he explained. “But there is a huge Irish community giving support and help to other Irish companies there. That’s what we’re trying to reiterate. We want other Irish aviation companies to come into Saudi Arabia, and we want to provide the support for them.”