Inside a private jet operated by Delta World Charter. Courtesy Delta World Charter
Inside a private jet operated by Delta World Charter. Courtesy Delta World Charter
Inside a private jet operated by Delta World Charter. Courtesy Delta World Charter
Inside a private jet operated by Delta World Charter. Courtesy Delta World Charter

Why private jet travel is no longer the preserve of the rich and famous


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It’s Sunday afternoon and Adel Mardini is moving around the reception area of a VIP terminal at Dubai World Central, attending to the needs of his well-heeled clients.

With its plush lounges, secluded relaxation zones and fully stocked entertainment area, the Jetex Flight Support terminal, which caters exclusively to private jet travellers, feels more like a five-star hotel reception than an airport building.

“It’s a busy day today,” Mardini tells me, settling down on a sofa as a group of children play table tennis nearby. “And it’s been like this for the past few months.”

The Jetex VIP Terminal at Dubai World Central. Courtesy Chris Whiteoak / The National
The Jetex VIP Terminal at Dubai World Central. Courtesy Chris Whiteoak / The National

Since the UAE and other countries began opening their borders in the wake of coronavirus-related restrictions, the private jet industry has experienced an unprecedented boom, according to industry insiders. Mardini, founder and chief executive of Jetex Flight Support, says passenger numbers jumped more than 100 per cent in the third quarter of 2020, compared to the same period last year.

He expects to top 200 per cent growth by the end of the year. “2019 was a perfect year. And to see this much growth at this time is very encouraging,” says Mardini, whose company manages about 30 to 40 flights a day from Dubai World Central.

Adel Mardini, chief executive of Jetex. Chris Whiteoak / The National
Adel Mardini, chief executive of Jetex. Chris Whiteoak / The National

The reasons for this growth are probably obvious: a reduced number of commercial flights around the globe and safety concerns in the Covid-19 era. “There was a recent report by McKinsey & Company that said if you are travelling on a commercial flight, you are exposed to about 700 touch points compared to just 20 to 30 if you are travelling on a private jet,” Mardini points out.

"The beauty of our business is it's not just about the airline, it's also the terminal," Mardini explains. "For example, if you are coming here, you are exposed to a maximum of two to three employees and within 15 minutes you will be on board. Plus, on a private jet, you select who sits next to you."Jetex Flight Support, referred to as a fixed-based operator in the aviation industry, began operations in 2005 in the UAE, providing logistics and support for private planes. It opened its first terminal, one of the biggest in the world at 3,000 square metres, in Dubai in 2009. Currently, it operates 33 terminals around the world.

The growth in demand for private air travel, once the preserve of millionaires and celebrities, is being fuelled by a new category of flyers. “It is sad what’s happening to commercial aviation right now. But what’s happening to private aviation is quite positive,” says Sam Chui, one of the world’s most-followed aviation vloggers, with more than 2.3 million subscribers on his YouTube channel.

The Jetex VIP Terminal at Al Maktoum International Airport. Chris Whiteoak / The National
The Jetex VIP Terminal at Al Maktoum International Airport. Chris Whiteoak / The National

“It has enabled people to travel. People who used to fly business and first class are now chartering private jets. And it’s not just the affordability, it’s also for safety. They don’t have to share anything with people and every step of their journey is taken care of. In this sense, private aviation is literally thriving at the expense of commercial aviation.

“Right now, if you go to Dubai World Central, you will see 50 private jets parked and they are in and out every day. There is a high volume of flights going all over the world.”

Aziz Ghorbani, general manager of Dubai’s Delta World Charter, which provides private and charter services, is experiencing the same trend. “Prior to the pandemic, we were dealing with high-net-worth and ultra-high-net-worth clients either for business or leisure. However, after the pandemic, we see a lot of demand from passengers who have never flown private in the past,” he says. “There is also huge demand from ‘necessity travellers’, people who have to travel for medical emergencies or diplomats.”

How much does private jet travel cost?

Prices are also getting competitive, adds Jetex’s Mardini. “Flying a private jet from Dubai to Europe will cost almost $30,000 for 10 passengers. That’s roughly $3,000 per passenger. If you’re flying the same destination one way in first class on a commercial airline, you will be paying around $60,000 for 10 passengers. So it’s very accessible.”

An increasing number of flights are coming from Europe because of current restrictions in countries there, says Mardini. “The great system that the UAE government has set up has increased travel into the country and has had a major effect. Apart from Europe, we have high demand for flights from Russia and India, as well as Lebanon and Iraq.

“The major route right now is Europe-Dubai-Maldives-Dubai-Europe. We already have a lot of bookings for the New Year on this route, mostly from European countries.”

Comlux's 'flying apartment'

Last month in Dubai, aviation company Comlux, which specialises in luxury air travel, showcased its Boeing Business Jet 767, dubbed the SkyLady, after a four-month refurbishment. The 51-seat “flying apartment” comes with a luxurious suite fitted with an ultra-king-size bed and walk-in shower, among other things. There’s also an on-board ionisation system that kills pathogens in the air, so passengers don’t have to wear masks.

The private lounge in the Comlux Skylady. Courtesy Comlux
The private lounge in the Comlux Skylady. Courtesy Comlux

“It’s our flagship plane and it was popular with world leaders, but we wanted to upgrade it so we can cater to more people who want to travel in groups,” explains Andrea Zanetto, chief executive of Comlux. “For example, we used to have a presidential suite where presidents would have meetings. Now we’ve redesigned it for family and friends and turned it into a lounge.

“We made these changes to respond to client needs and also to try to target new clients. It’s like staying at home. And now you can fly around in it with a group of friends in a safe environment without being exposed to health risks.”

The Comlux Skylady. Courtesy Comlux
The Comlux Skylady. Courtesy Comlux

Ghorbani is positive there will be a further increase in demand for private jets in the next year. “We will see more new passengers who could afford private jets in the past, but were not using them, and didn’t know about the facilities or the availability,” he says. “Commercial airlines will take some time to recover. This gap will be filled by private jets.”

It remains unclear whether demand for private air travel will remain robust once commercial travel recovers and passenger confidence returns. One Dubai resident, who has his own pilot’s license, but wanted to remain anonymous, is not convinced.

“I think the party will continue until mid-2021 or the end of 2021. Once a Covid-19 vaccine is available and things start returning to normal, most of the travel will be taken over by the commercial airliners,” says the investor, who recently chartered a plane for a friend and his family of 10 for $100,000.

“Having said that, it’s also possible that a small set of clientele will end up sticking to private jet travel even after a vaccine is available, as they will have gotten used to a certain travel lifestyle by then and may find it tougher to return to a commercial airliner. So the private jet industry may end up retaining a small set of clients.”

For those who have the financial capability, they now have a solution they probably didn't consider before

But many private aviation companies are taking a longer-term view. Last month Comlux signed a deal to design the interiors of the first 15 of Airbus’s new ACJ TwoTwenty business jets, which come with six living zones and room for 18. The first flight of the TwoTwenty is set for 2023.

“Airbus decided to invest in this even during the coronavirus pandemic because they see the opportunity in the future,” says Zanetto. “The post-crisis period is always full of opportunities. I am pretty sure that business aviation can be the solution for many. There will be a huge demand,” he adds. “The only limits now are restrictions, which are correctly made. But once these are lifted, there will be a boom.

“People will need to travel. They will want to travel in a safe environment. For those who have the financial capability, they now have a solution they probably didn’t consider before.” 

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UAE currency: the story behind the money in your pockets
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Fifa Club World Cup:

When: December 6-16
Where: Games to take place at Zayed Sports City in Abu Dhabi and Hazza bin Zayed Stadium in Al Ain
Defending champions: Real Madrid

Race 3

Produced: Salman Khan Films and Tips Films
Director: Remo D’Souza
Cast: Salman Khan, Anil Kapoor, Jacqueline Fernandez, Bobby Deol, Daisy Shah, Saqib Salem
Rating: 2.5 stars

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COMPANY PROFILE

Company name: Letstango.com

Started: June 2013

Founder: Alex Tchablakian

Based: Dubai

Industry: e-commerce

Initial investment: Dh10 million

Investors: Self-funded

Total customers: 300,000 unique customers every month

THE SPECS

2020 Toyota Corolla Hybrid LE

Engine: 1.8 litre combined with 16-volt electric motors

Transmission: Automatic with manual shifting mode

Power: 121hp

Torque: 142Nm

Price: Dh95,900

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now

The details

Heard It in a Past Life

Maggie Rogers

(Capital Records)

3/5

Results:

2.15pm: Handicap (PA) Dh60,000 1,200m.

Winner: AZ Dhabyan, Adam McLean (jockey), Saleha Al Ghurair (trainer).

2.45pm: Maiden (PA) Dh60,000 1,200m.

Winner: Ashton Tourettes, Sam Hitchcott, Ibrahim Aseel.

3.15pm: Conditions (PA) Dh60,000 2,000m.

Winner: Hareer Al Reef, Gerald Avranche, Abdallah Al Hammadi.

3.45pm: Maiden (PA) Dh60,000 1,700m.

Winner: Kenz Al Reef, Gerald Avranche, Abdallah Al Hammadi.

4.15pm: Sheikh Ahmed bin Rashid Al Maktoum Cup (TB) Dh 200,000 1,700m.

Winner: Mystique Moon, Sam Hitchcott, Doug Watson.

4.45pm: The Crown Prince Of Sharjah Cup Prestige (PA) Dh200,000 1,200m.

Winner: ES Ajeeb, Sam Hitchcott, Ibrahim Aseel.

The specS: 2018 Toyota Camry

Price: base / as tested: Dh91,000 / Dh114,000

Engine: 3.5-litre V6

Gearbox: Eight-speed automatic

Power: 298hp @ 6,600rpm

Torque: 356Nm @ 4,700rpm

Fuel economy, combined: 7.0L / 100km

The%C2%A0specs%20
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%204-cylinder%202.0L%20TSI%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%3C%2Fstrong%3E%20Dual%20clutch%207-speed%0D%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20320HP%20%2F%20235kW%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20400Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20%2449%2C709%20%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20now%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
The biog

Hobbies: Salsa dancing “It's in my blood” and listening to music in different languages

Favourite place to travel to: “Thailand, as it's gorgeous, food is delicious, their massages are to die for!”  

Favourite food: “I'm a vegetarian, so I can't get enough of salad.”

Favourite film:  “I love watching documentaries, and am fascinated by nature, animals, human anatomy. I love watching to learn!”

Best spot in the UAE: “I fell in love with Fujairah and anywhere outside the big cities, where I can get some peace and get a break from the busy lifestyle”

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Name: Carzaty

Founders: Marwan Chaar and Hassan Jaffar

Launched: 2017

Employees: 22

Based: Dubai and Muscat

Sector: Automobile retail

Funding to date: $5.5 million

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The specs: Volvo XC40

Price: base / as tested: Dh185,000

Engine: 2.0-litre, turbocharged in-line four-cylinder

Gearbox: Eight-speed automatic

Power: 250hp @ 5,500rpm

Torque: 350Nm @ 1,500rpm

Fuel economy, combined: 10.4L / 100km