News
Royal Jet delays expansion plans
Last Wednesday, Royal Jet announced that it has slowed down plans for expansion due to the effects of the global financial crisis, but they say the company has shown recovery signs ahead of the busy summer period.
According to Shane O’Hare, the executive aircraft charter has delayed plans to expand its fleet from 12 to 20, but is still aiming to operate a 50-jet fleet by the end of 2021.
“This customer base will not tend to trade down,” asserts O’Hare. “They will continue to fly by private jet and that is good for us.”
Royal Jet, which is jointly owned by Abu Dhabi Aviation Co. and the UAE government, has an extensive fleet of private jets. It includes Boeing Business Jets, Gulfstream 300s, Gulfstream IVSPs, and a Learjet 60.
O’Hare said that the private jet charter will try to add six more Boeing Business Jets in the next five years. Flights with the company can cost as much as $18,000 an hour.
“We were looking at around 20 jets, but the economic downturn pushed back the plan by 12 months to 2013,” claims O’Hare. “It’s the same plan in place, just rate of growth has slowed.”
He expects the company’s profit growth to be flat for 2009 after posting an amazing 17 percent increase in 2008. The main shareholder of the company is the Presidential Flight Authority, but it is open to acquisitions and alliances.
