Story ID: 322
Business Jet OEMs Upbeat on Middle East
By: Peter Shaw-Smith
Caption: Large cabin, long-range bizjet fleet in region totals almost 300 aircraft with far more potential sales, manufacturers believe.
Word Count: 743
Business aircraft manufacturers are bullish on Middle East sales prospects, despite continued downward pressure on oil prices. This is of course a double-edged sword, because low fuel prices have benefitted aircraft operators, while lower oil prices have depressed aircraft sales.

Gulfstream’s fleet in the Middle East comprises more than 100 aircraft, while Bombardier says it has placed 110 aircraft and Dassault 70 jets in the region, but all of these manufacturers of large-cabin, long-range business jets see considerable room for more sales—in part thanks to new models coming to market.

“We have a positive view about the potential for growth and we are optimistic about 2017," said Scott Neal, senior vice president for worldwide sales, Gulfstream Aerospace. "In particular, we are excited about our new G500 and G600 and the benefits that both aircraft will deliver to our customers in the Middle East and around the world. We recently announced enhanced performance standards for both aircraft.”

Qatar Airways charter subsidiary Qatar Executive operates three Gulfstream G650ERs, which are the first deliveries in a 30-aircraft order finalized in 2015. Qatar Executive’s Gulfstream order book consists of a mix of G650ERs, G500s and G600s. Qatar Executive was the international launch customer for the G500 and G600.

“Of the more than 250 Gulfstream G650/G650ER aircraft in service worldwide, more than 25 are based in the Middle East, including head-of-state aircraft in Jordan and Kuwait. The aircraft’s nonstop capability to the U.S. is the key to its popularity in the region,” he said.

Large-cabin aircraft dominate the Gulfstream fleet in the Middle East. Of the more than 100 Gulfstream aircraft in the region, nearly all are large-cabin models, led by the G650/G650ER. The next two most popular Gulfstream aircraft are the large-cabin G450 and G550.

Gulfstream has a considerable product support presence in the Middle East. Two company-authorized service centers are located in the region, and these are Jet Aviation facilities in Jeddah and Dubai. Gulfstream also has a parts distribution center at Dubai South (Dubai Al Maktoum International Airport), where it has positioned $20 million in inventory.

The region is also home to two Gulfstream field service representatives and a Field and Airborne Support Team (FAST) to assist operators in resolving aircraft-on-ground situations.

Bombardier takes a similarly optimistic view of the region. “Bombardier remains committed to the Middle East, and we are confident that private aviation in the region will continue to grow in the coming years,” Khader Mattar, Bombardier Business Aircraft vice president sales for the Middle East, Africa, Asia-Pacific and China, told AIN.

Bombardier predicts Middle East growth at 2.2 percent for 2017, down from 5.1 percent last year. “Over the next 10 years, Bombardier expects the Middle East will receive 250 deliveries valued at $10 billion, and medium- or large-category aircraft will account for more than 90 percent of these deliveries," he added.

As of this year's second quarter, Bombardier’s fleet in the Middle East consisted of 110 aircraft representing a 26-percent market share. Challenger and Globals are nearly 90 percent of the company's total in the region. “In the past five years, our best-selling aircraft in the region have been the Challenger 650 and Global 5000,” he said.

The Middle East has traditionally been a key market for Dassault. The efficiency and robustness of its Falcon aircraft are particularly appreciated by local operators, the company said, with the Gulf fleet nearly doubling in five years, to more than 70 aircraft and continuing to grow despite the softness of the current market.

"We expect the Gulf region to play a big role in the success of our new flagship [the 8X], which offers the best combination of range, cabin comfort and operating efficiency of any business jet on the market,” said Dassault Aviation Chairman/CEO Eric Trappier. “We also anticipate heavy demand here for our upgraded Falcon 900LX, with a redesigned cabin, contemporary styling, optimized soundproofing and the latest cabin systems making it the best buy in its category for years to come.”

Khalifa Al Zaffin, executive chairman of Dubai Aviation City Corporation, told AIN that general aviation had been prospering at DWC. “Growth has been high. Every day we are getting new players. It is a good story. [Some 13,000 movements in Dubai] will change with time. I think we will see more of them at Al Maktoum International in the future.”