The Hindu Business Line : UAE's jet-setting executives

Private jets range in cost from $5 million for the smaller aircraft to $40 million for the bigger jets. Majority of the customers charter jets or lease them for a few months, with average flying costs ranging between $4,000 and $5,000 an hour.

Relax in the comfort of a chic bedroom, attend to urgent office work at a state-of-the-art workstation, do business with clients through teleconferencing in a hi-tech conference room or simply just enjoy the privacy of a special designer suite with your family — all this while flying in a private jet to the destination of your choice.

The era of the `private jet' arrived only in the late 1990s to the oil rich countries of the Gulf, but it is taking off in a very promising manner with industry sources forecasting a big spurt in demand for hiring or purchasing business and private jets by high net worth individuals, corporates and government officials in the coming decade.

This phenomenon has prompted a whole bunch of new airline companies to enter the business aviation sector to cater to this rising demand in a potentially lucrative but hitherto under served market.

"The western concept that time is money is now gaining ground in the Gulf. Gulf businessmen and officials are opting for private jets to carry out their business as many of them have work in two or three countries within the region. Chartering a private jet can help them hold meetings in three different Gulf States in a single day. They find it particularly useful when a group of executives or officials need to travel quickly," says Ammar Balkar, Director, Sales and Marketing, Royal Jet. This is a luxury international airplane charter service established in Abu Dhabi in May this year to cater to royal families, government officials and businessmen.

Dubai-based Execujets was the first private airline offering speciality charter and leasing services to enter the market. Says Horm Irani, Managing Director of Execujets, "We knew there is good potential here and we were the first to tap this under served market. Extraneous developments like 9/11 and the recent Iraq war did stall wholesome growth, but the prospects are bright for the executive jet sector in this region."

Balkar is also upbeat about further growth prospects in the region, adding that Royal Jet, jointly owned by Abu Dhabi Aviation and Royal Emiri Flights, flies an average of 100-120 hours a month, against the normal frequency of 80-90 hours for a charter private airline. Sixty per cent of the airline's operations are to long haul destinations, mainly in Europe.

With customers ranging from royalty to businessmen, officials and other VIPs, these companies offer a complete aviation package that includes aircraft selection, aircraft management for private owners and charter or leasing of planes.

The choice ranges from a small seven seater, to the 14-seater Gulfstream G300 or the larger Boeing Business Jet that can carry up to 42 passengers.

Time, security, luxurious seating and huge baggage space are some reasons why Gulf nationals prefer private jets. Single, large Arab families like to holiday abroad often and the private jet option offers luxury and privacy for those who can fork out the extra shekels.

Aircraft are customised to suit customer taste, depending on the size of the plane. While state-of-the-art avionics and other technical perfections are generally expected, other requests include private rooms, showers, carpeting, electronic gadgets, bedrooms and satellite communications. Some jets are virtual "offices in the sky" with a host of hi-tech facilities. Customers also bring their own designers to furbish planes with special décor or fancy fittings such as gold lined cup holders. Though there are fewer customers who make outright purchases, those who do, customise their planes with an array of luxurious fittings and hi-tech gadgets.

Private jets range in cost from $5 million for the smaller aircraft to $40 million for the bigger jets. A majority of the customers charter jets or lease them for a few months, with average flying costs ranging between $4,000 and $5,000 an hour. Terming the Gulf and West Asia as a virgin market compared with Europe, where the sector is saturated, Irani says that Gulf nationals, particularly the younger generation, are realising the value of private jets as a business tool.

While the need for privacy and security are met by private jets, safety worries related to smaller aircraft compared to regular commercial planes, appears to be preventing more businessmen, particularly expatriates in the Gulf, from opting for chartered jets. Says B.R. Shetty, a prominent Abu Dhabi-based businessman who travels overseas several times a month, "The UAE is so well connected by airlines to all parts of the world that I have not found the need to use a charter aircraft on a regular basis. Safety is the main factor. I feel more safe in a regular commercial plane." Another Arab businessman feels that the cost factor would also curb wider use of business jets by private companies. "Apart from royalty, only large corporations, like those in North America, would be major customers for these jets," he says.

Coming to cars, while the interest in jets is a recent phenomenon, Gulf nationals have had a long standing passion for luxury automobiles. In this part of the world, almost every adult family member owns a car or even two. Most of the cars they purchase are top of the range. In fact, the UAE is supposed to have one of the highest per capita percentage of Mercedes Benz cars in the world!

Possibly all types and models of cars, the most powerful of SUVs and an array of custom designed sedans, sports cars and limousines dot the city roads, offering the kind of luxury unimagined on this desert landscape barely 40 years ago.

While swank cars are a common sight, the demand for customised luxury vehicles is rising with car companies bringing out limited editions and launching individual programmes to meet customer requirements.

Says Rania Rostom, Corporate Communications Manager, BMW Group, West Asia, "The percentage of customers ordering BMW Individual premium cars is around 25 per cent and the market for this sector is growing at a higher rate than the medium range cars. For instance, other than requests for special colours and material which the BMW Individual programme caters for easily, we have orders in the new 7 Series for an intercom system, a built-in laptop, a fax machine and fold-in tables," she says.

Customers in the region have discerning tastes, high disposable incomes and a passion for novel innovative technologies, she points out. GCC nationals prefer their cars to be fully specified, with options such as sunroof, telephone, navigation system, TV, leather seats, multi-function steering wheel, CD player and other luxury options.

Customers also want to have exclusive cars with unique accessories. For instance, the BMW X5 `Elie Saab Limited Edition' launched this year came in two different and unique exterior and interior colour combinations. It mirrored famous fashion designer Elie Saab's latest collection based on the use of black and white as the main theme.

All these 100 exclusive and plush vehicles were sold out immediately in the region. The BMW 760 Li Yachtline, a concept car launched this year, features a carefully selected combination of exclusive equipment, which gives this car its authentic yachting character.

The Gulf nationals' love for luxury cars is best reflected in the garage of a flamboyant member of the UAE royal family who not only owns an enviable range of modern cars, but also a prized collection of vintage cars and even a huge globe-shaped caravan when he heads for his desert hideout.

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