Story ID: 359
Jetcraft Shines in Saudi Arabia
By: Peter Shaw-Smith
Caption: A stabilizing political situation spells good news for Jetcraft's Middle East business.
Word Count: 345
Saudi Arabia is by far the largest private jet market in the Gulf region, according to Jetcraft (SD 104), with 150 aircraft based in the kingdom. “Last year, we saw the second and third quarters as reduced, while the market is now stable,” said Pascal Bachmann, senior vice president of sales for EMEA. “We expect 2019 to be a better year for the market than 2018, there is no doubt about that.” 

The kingdom is home to many converted aircraft, as well as 15 ACJs and 30 BBJs. “There are old business jets, like the Gulfstream GII and GIII, based there. At some point, these aircraft will need to be replaced,” he said.

This year, Bachmann expects Saudi Arabia to be back to normal. “From what we can see, it looks like the political situation is going to be stable in 2019,” he said. “We have resumed discussions about the sale or purchase of private jets with clients in Saudi Arabia, and there is a certain optimism in the market.”

The Middle East usually accounts for between 8 to 12 percent of the total number of aircraft sold annually worldwide. “Every year, we have been able to sell more than the preceding year. If the Middle East keeps its usual share, then we should see around 12 transactions take place. These are Jetcraft’s numbers. While last year, Saudi Arabia slowed a bit, activity in the UAE and other Middle East countries picked up.”

He said new rules issued by the General Authority for Civil Aviation on domestic aircraft registration will lead to mergers. “Usually, if you operate one or two aircraft, it is difficult to survive; you cannot compete with the larger players in terms of economies of scale,” he said.

“You have a number of small operators in country. Operators who have a Saudi operating certificate are going to be in a good position. There is a relatively small group of large operators—and a large group of small operators, with one or two aircraft. There is probably room for consolidation.”