Private jet companies in the UAE are warning their customers to watch out for competing airlines operating in the so-called "grey market".
Some companies that have launched or expanded in the country say they have invested large amounts in local infrastructure development while trying to attract passengers on to their planes, which tend to be much smaller than commercial airliners and cater to corporate executives.
Yet some competitors, they argue, are flying in from across the Middle East to pick up business but do so without holding the right kind of licence, known as an air operator's certificate.
"The problem is the policing of that," said Dave Edwards, the general manager of Gama Aviation, a business air operator from the UK that has expanded into the UAE.
"There isn't much policing that goes on in the Middle East to protect incumbents and home-grown carriers," he added, "and so we see an awful lot of foreign aircraft coming in and operating in our region who aren't legally allowed to do so."
While the industry does not track how much revenue overall gets diverted to grey market players, Mr Edwards estimated it was as much as 30 to 40 per cent of his company's business.
Other companies that are members of the Middle East Business Aviation Association, an industry group, said they were warning their customers about certain travel insurance implications.
When it comes to passengers who fly on private planes that are not supposed to be operating commercially, "there would be no insurance coverage if they were injured," said Mike Berry, the managing director for ExecuJet Middle East, which has offices in Dubai.
Insurance companies cannot pay for incidents that occur on illegal charters "precisely because the incident occurs during an illegal act", said Aoife O'Sullivan, a partner at Gates & Partners, a law firm headquartered in the UK that specialises in the aviation industry.
Larger international carriers have been trying to protect their markets by restricting landing rights, including those based in India, Germany and Canada.
But smaller operators argue their battle is different in that they are not competing with other companies legally picking up business in the UAE. "It is not a sense of protectionism for ourselves," said Mr Edwards.
"In this market, everyone has to be very 'fighty' about getting as much work as they can, but when the law is so clear on it, I don't think any of us should sit back and say, 'this is fine.'"
nparmar@thenational.ae
APPLE IPAD MINI (A17 PRO)
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Fighting with My Family
Director: Stephen Merchant
Stars: Dwayne Johnson, Nick Frost, Lena Headey, Florence Pugh, Thomas Whilley, Tori Ellen Ross, Jack Lowden, Olivia Bernstone, Elroy Powell
Four stars
The specs
Engine: 2.9-litre twin-turbo V6
Power: 540hp at 6,500rpm
Torque: 600Nm at 2,500rpm
Transmission: Eight-speed auto
Kerb weight: 1580kg
Price: From Dh750k
On sale: via special order
COMPANY PROFILE
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
Company%20Profile
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SPECS
Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
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On sale: Now
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
TWISTERS
Director: Lee Isaac Chung
Starring: Glen Powell, Daisy Edgar-Jones, Anthony Ramos
Rating: 2.5/5
COMPANY%20PROFILE
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5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
Company%20profile
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Company%20Profile
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Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
Rating: 4/5