The Middle East Business Aviation Association (MEBAA) has renewed its call for a crackdown on the grey market in private aviation.
Ali Ahmed Al Naqbi, chairman of MEBAA, says private owners renting their planes to third parties are breaking the law and threatening the livelihood of legal, licensed operators.
Al Naqbi likens the practice to operating a private taxi service with your own car.
“It happens when the private owner of an aircraft charters it for revenue, but you are not allowed to do this because your license is for private use only,” Al Naqbi told aviationbusinessme.com.
“Because you are not commercial, you charter your aircraft at a lower, lower, lower price than the legal operators. You destroy the market.
“What will happen to the other [licensed] operators? They will lose business. It is illegal, 100% illegal.”
In addition to taking away business from licensed operators, flights flown without the proper licenses are not insured, Al Naqbi added.
The problem exists because of insufficient inspection, he says, and is particularly prevalent in Saudi Arabia where the practice can be very lucrative for private plane owners.
In an interview ahead of the MEBA trade show & conference next month, Al Naqbi said the business aviation market in the MENA region remains in good health overall.
Despite the financial crisis and regional unrest, the industry has continued to enjoy double digit annual growth based on the number of aircraft movements.
It [recession and unrest] has affected buying and delivery [of planes], but the number of flying hours hasn’t really been affected,” Al Naqbi said.
The MEBAA conference starts on December 7 and the trade show runs December 8-10 at Dubai World Central.
