Story ID: 367
Lebanon’s Economic Crisis Hobbles Cedar Executive's FBO
By: Peter Shaw-Smith
Caption: In the past three years, the Lebanese pound has lost over 90 percent of its value.
Word Count: 399
A wholesale economic crisis that has buffeted Lebanon for three years has made life difficult for the nation’s business aviation sector, an industry official said on the eve of the MEBAA Show.

Lebanon is experiencing hyperinflation as a result of an ongoing economic crisis since the end of 2019,  said the unofficial website, the961.com, which has tracked the currency’s struggles. On November 28, black market traders in Lebanon were selling the U.S. dollar for LBP40,300 and buying it for LBP40,350.

Before the crisis, the exchange rate was around $1 to LBP1,500. “The Lebanese lira [pound] has lost more than 90 percent of its value,” the website said.

Cedar Executive’s FBO, Cedar Jet Center, has borne the brunt of the downturn, while business flights have been buoyed by the creation of alternative routes, due to the coronavirus pandemic, Randa Kammoun, Cedar Executive's director of sales and ground operations, told AIN. “The Lebanese market has changed amid the pandemic and we are mostly operating for non-Lebanese passengers,” she said.

“Business has yet to return to normal in spite of loosening Covid restrictions, due to the tough economic crisis and political tension,” she said. “However, operator Cedar Executive has been not affected, with increasing demands for business flights, especially since the pandemic opened up new markets.”

She said traffic rights for Lebanese operators in Europe were restricted, an unfair step in the face of Lebanon’s downturn, given the treatment European operators enjoyed across the Middle East and North Africa. “We are noticing less demand for business jet travel in Lebanon mainly due to the economic crisis, as a number of high-net-worth individuals have left the country. On the other side, we have a new market since Lebanon is well located geo-strategically, and positioning times are acceptable.”

Website the961.com said a ‘bank rate’ of $1 to LBP8,000 amounted to the freezing of the accounts of Lebanese citizens, and the release into the market of a limited supply of U.S. dollars.

Cedar Jet Executive continues to operate two Legacy 500s, but the delivery of a Praetor 500 or 600 aircraft has been delayed given difficulties in acquiring new aircraft.

“I have deep confidence that Lebanon will rise again,” Kammoun said. “The Lebanese people have the will and ability to overcome their struggles and move on.”