COVID-19 all but shut down the aviation industry, airlines laid off staff, grounded their flights, and the world came to a standstill for the first time in modern history. Grounded flights during 9/11 and the early 2000s SARS outbreaks were nothing compared to the scale of this pandemic, the complete halt in air travel and the devastation caused to the global airline industry.
However, there has been a glimmer of hope for business aviation as more and more businesses and families turned to private aviation services to ensure a safer way to travel. According to research by McKinsey, commercial flight passengers have approximately 700 points of contact with people and objects, whereas, for passengers on a private flight, this reduces to 20 or 30 contact points.
“It is no secret that the aviation industry was among the hardest hit due to the COVID-19 pandemic. The crisis brought commercial traffic to a standstill but provided a silver lining to business aviation. While trade tensions, geopolitical issues and the pandemic made for a rather volatile landscape in global aviation, business aviation has largely remained resilient to external factors. We have seen an increasing number of new customers looking for alternative ways to fly and avoid the busy airports for a more secure and safer way to travel. Consumer behaviour has slightly changed, with last-minute bookings coming in more frequently than what the industry is used to receiving. The idea that you can always charter a private jet anytime offers customers added comfort in the fact that they can choose the day and time of travel,” noted Holger Ostheimer, Managing Director, DC Aviation Al-Futtaim.
According to Ostheimer, private jet charters soared during the last 18 months of the pandemic, a trend that is not going to top away any time soon. The pandemic forced families, individuals and companies to use private jet charter services to repatriate people before international borders closed or, in some cases, after being the only means to fly into and out of a country. DC Aviation Al-Futtaim also saw more commercial flight passengers, who would generally fly first-class, opt to travel in private jets.
“The air charter and cargo markets are looking particularly promising going forward and, as always, pandemic or not, clients continue to demand the efficiency, speed, and safety that business aviation provides,” said Mohammed Al Husary – Executive President and Co-Founder, UAS International Trip Support.
As more and more people experience the benefits of flying privately, the sector is only going to grow. In part, business aviation companies have the pandemic to thank for this.
“People might charter a jet or families or friends travelling together might regularly club together to book several block hours for a jet to get to their destination,” explained Ostheimer.
Health and safety considerationsÂ
The COVID-19 pandemic has brought safety measures front and centre for all businesses, no matter the industry. This has been especially true for aviation companies.
“While commercial airlines are following some reliable biosecurity measures, including deep cleaning of aircraft and facilities, they will never be able to find solutions to big, crowded halls and long queues of strangers,” Ostheimer said.
Private jet charter companies have elevated biosecurity and health concerns to high priority, but they also have the advantage of leading their passengers to preferred and less trafficked facilities. Unlike private charters, passengers booked on scheduled flights have no control over who they fly with.
“At DC Aviation Al-Futtaim (DCAF), we have put in place a series of measures to help reduce risk and limit the spread of the COVID-19 at our Fixed Base Operations (FBO) and offices located at Dubai South. Our first and foremost priority is the health and safety of our customers and employees. We are the first and only FBO to offer the added convenience of taking the express Polymerase Chain Reaction (PCR) test at our VIP lounge,” Ostheimer explained.
“Also, in a further sign of our commitment to provide customers with the highest levels of service and safety, DCAF received the International Standard for Business Aircraft Handling (IS-BAH) Stage 2 certification for its FBO. IS-BAH Stage 2 Certification is the second of three levels of the highest possible safety standards that an FBO can have. The certification is the global industry standard on safety management and risk mitigation for business aviation handlers.”Â
Growth
According to DCAF, there is a clear indication that the business aviation industry is faring much better than two years ago. The business and private aviation industry is very niche. It caters to the one per cent UHNI globally, and there will always be aircraft that need management, maintenance or even hangarage – and are looking for DCAF’s services and expertise.
“Dubai will continue to attract high-net-worth and ultra-high-net-worth individuals who represent a certain level of activity in terms of aircraft ownership or private-jet movements,” stated Ostheimer. “Let us take the example of our ground handling activity where we have witnessed a 25 per cent increase from 2019 vs 2021, and we see a similar increase in our charter services from the second half of last year.”
According to Frost & Sullivan, business aviation brokers and agents stayed busy in the last quarter of 2021. High net worth individuals have held onto their private jets, unlike during the 2008 financial crisis where business aviation operators divested their assets. In addition, during the pandemic, many corporates have chosen to retain their business aircraft as senior company executives remain wary of commercial flights.
“We continue to receive strong interest from owners and operators for our Aircraft Management and Handling services which show that we are on the right track. We continue to remain optimistic and expect to progress steadily,” stated Ostheimer,
Staffing impacts
The aviation industry was hit hard across the board due to the pandemic. The effects are still being felt among many airlines worldwide as they struggle to resume normal operations. The business aviation sector also saw a dip in activity during the height of the pandemic. Like all other sectors, it also had to take appropriate measures, including reducing staff as activity dropped to unprecedented levels.
“Never in the history of aviation have so many obstacles presented themselves simultaneously and for such a prolonged period as during the COVID-19 pandemic. With border closures and lockdowns limiting access to suppliers and amenities, differing immigration rules for every country that sometimes changed daily, and health screening and long quarantine periods restricting crew entry and crew rest, it was incredibly challenging for operators and trip support providers to get flights in the air,” noted Al Husary. “However, it was because of the agility of business aviation operations that so many repatriations and evacuations transported people to their home countries during some of the darkest days of the pandemic. It also facilitated the transport of emergency and medical cargo to desperate countries all over the globe. So, many business aviation employees continued their work during COVID, whereas commercial airlines were grounded. Business aviation also bounced back quicker and requires less staff than commercial aviation. I’ve no doubt business aviation demand will continue to grow steadily.”
The rapid recovery of the business aviation sector is due primarily to it becoming the preferred way to travel for most, if not all, HNWIs and corporate leaders. However, business aviation quickly recovered once air travel restrictions were lifted as it became the preferred mode of travel for many due to health and safety concerns.
“In further signs that the industry is showing signs of recovery, we have seen a 25 per cent increase in private and business jet activity in the first quarter of this year at our fully integrated facility at Dubai South and this trend has continued into Q2,” Ostheimer explained.
It is not only the business aviation passenger market that is improving, according to a report by Mordor Intelligence LLP, the market for business jets was valued at $5.25 billion in 2020 and is anticipated to register a CAGR of 2.5 per cent during 2021-2026, to reach a market value of $17.86 billion by 2026. The report stated that approximately one-third of business jet fleets currently in operation are over ten years old. This drives the business jet operators and charter providers to invest in fleet modernisation programs and enhance their fleet’s capabilities.
DC Aviation Al-Futtaim
DC Aviation Al-Futtaim (DCAF) is a joint venture between Stuttgart-based DC Aviation GmbH, the largest operator of business jets in Germany and one of the leading operators in Europe and Dubai-based Al-Futtaim, a privately owned UAE business conglomerate. The JV capitalises on Al-Futtaim’s solid fundamentals and presence in the Middle East, and DC Aviation’s global reputation as a premium provider of aircraft management, executive charter operations, business jet maintenance and consultation services.
DCAF is a fully integrated business aviation facility based out of Al Maktoum International Airport located at Dubai South with two dedicated hangars measuring 5,700sqm and 7,500sqm, bringing its total land-side plot area to 24,000sqm and apron area to 13,000sqm.
VVIP customers can also enjoy the 1,300sqm exclusive VVIP lounge area designed to international standards offering customers the highest levels of comfort and privacy, shower areas and a conference room.
DCAF’s core business areas include Aircraft Management, Maintenance, FBO and Ground Handling Services, and Business Jet Charter.
Through their line maintenance capabilities catering to various business jets, owners and operators receive a diverse range of maintenance services, from spare parts supply, procurement and storage, to maintenance and airworthiness certification.
The Aircraft Management division is helping business jet owners optimise their aircraft assets by operating aircraft in an environment in line with the highest industry standards regarding flight safety and airworthiness. Clients also benefit from the significant cost-saving potential on insurance, fuel purchasing and other relevant flight support services.
Located in a prime position just off the airport’s runway, the DCAF hangers and 7,700sqm dedicated ramp parking enables us to support, maintain and operate private and business jets of all sizes. Along with the VVIP lounge, 24-hour on-site security, screening facilities, customs and immigration services, customers are assured of a speedy and enjoyable travel experience.
DCAF’s business jet charter clients will benefit from the operator’s fleet size and variety and a 24/7 operation designed to provide an immediate response to requests.