Abu Dhabi-based GI Aviation, a newcomer to the UAE business aviation charter market, has obtained an aircraft operators’s certificate (AOC) and is set to begin operations using a single Pilatus PC-12NG before the end of the year. CEO Marios Belidis told AIN, “We believe it is the right time to begin operations; we are approaching the winter season and many prospective clients will be commuting. Destinations will cover major cities within the GCC, plus resort destinations like Sir Bani Yas, Delma and Fujairah [all in the UAE],” he explained.

Belidis is confident enough about the company’s prospects to consider the idea of ordering more aircraft in the near future. “It will depend on the market response to the product. If we see an increasing demand, we might consider ordering more aircraft. However, our objective is to begin with two aircraft.”

Belidis added, “It’s a new aircraft type in the region, so obviously, the GCAA [General Civil Aviation Authority] are going to be more cautious,”

Potential clientele would include company executives or federal government entities, religious tourism, and affluent individuals and families traveling for leisure. The PC-12 can carry up to eight passengers, but the six-seat layout affords more comfort. It can be converted to a medevac configuration within an hour.

“We envisage that sheikhs will continue to fly the Gulfstream G650 or Global Express. With the PC-12, we are appealing to a different type of client: [senior] government officials, board chairmen, business-focused CEOs, and affluent individuals.

“We have already had a good response to our plans. We have established contact with a local government department, at chairman level. It would make more sense for them to charter our aircraft than to fly business and first class.”

Federal or local authorities and government or private-sector companies are also target clientele. “We could fly clients from Al Bateen to Sharjah or Ras Al Khaimah at the weekend and it save them precious time. We are confident this type of operation will work, and then we may need additional aircraft. There is a need to be wiser and spend less money.”

He said careful consideration would be given to airports. “Due to the heavy traffic, we are less keen on Dubai International Airport [DXB]. Specific clients will be working at locations that are closer to Al Maktoum International [DWC]. They would definitely want to fly from there rather than drive to Al Bateen in Abu Dhabi.

“And at Abu Dhabi International, it is also difficult to obtain slots. Al Bateen Airport does not operate on a slot procedure and is therefore ideal for prospective clients departing from Abu Dhabi.”

The PC-12 began operations in 1994 and the NG was introduced in 2008. Its maximum stated range is 1,845 nm, and max cruise speed around 270 knots, so the aircraft can reach most of the Gulf and the Levant. Far shorter take-off and landing distances than a typical jet also makes the aircraft more versatile.

Belidis said the Swiss manufacturer, Pilatus, hadn’t had much of a commercial presence in the Middle East before. “Their focus was mainly in Europe, the U.S. and Asia Pacific, with some 1,400 aircraft delivered. Over the years, they have demonstrated they have a very good product. They have shown the aircraft is reliable and highly engineered.”

GI Aviation claims the PC-12 has earned a safety record that is statistically equivalent to the entire fleet of U.S. business jets. Belidis said orders for additional aircraft would depend on the manufacturer. “I expect a new order would take six to10 months.”

Target utilization per year will initially be 200 to 300 hours per aircraft. “We are testing the market. That’s why we have decided not to go ahead and purchase a bigger fleet. We are starting conservatively,” he said. “It is a fully owned aircraft. The company is owned and funded by a private investment company in Abu Dhabi.”

Belidis said his personal approach would be important. “My aviation career evolved from aeronautical engineering into the commercial and management side. The combination of both technical skills and management experience is fundamental to [running] a small airline.”

MEBAA Support

Belidis welcomes MEBAA’s support. “We recently joined MEBAA, and are confident of its support for our new model. Chairman Ali Alnaqbi has got it right in his advocacy of ‘right-sizing’ aircraft.”

Alnaqbi told AIN he is a champion of GI Aviation. “I am following this personally. The complicating issue here is the single-engine for commercial use. This will be the first [such] certificate granted…in the region. It’s been seen in Europe and is not unique as a type in the region. I think it will be very successful. I have been calling for the right-sizing of aircraft, and this is an excellent step,” he said.

“I am sure that when they get the license, this business will boom. A lot of executives today cannot afford to fly to a small destination paying big money for a Gulfstream. Business aviation is expanding because people can see it is a business tool. I think it’s a good idea and I am supporting it.”

Belidis is not daunted by the region’s business aviation slowdown. “The private aviation business in the region has flat-lined lately. Finding the money to fly on a private jet has become more difficult. [Therefore] we believe GI Aviation is coming to the market at the right moment, offering affordable luxury. We will provide competitive charter rates, thus feeding the gap between business-class seats and private jets,” he said.

“The oil-price fall has affected cash flow [in other sectors]. People are going to remain careful about how they spend money—we still have a crisis in the Gulf. The crazy money of 10 years ago is no longer around. There comes a point when [oil supply] grows too fast and the bubble bursts, and we see oil prices fall.”

Belidis is bullish on GI Aviation’s future. “A year from now we will be here and we anticipate we will need more aircraft. We are starting out here in the UAE as an AOC PC-12 model, just as the U.S.’ Surf Air is about to do in Europe [when EASA finalizes new SET-IMC rules—expected by January 2017].

“They are flying the same type of aircraft [on commuter routes]. They fill up every seat. For $2,000 you can fly three times per month on an aircraft. This won’t be our model, but the success they have enjoyed in the U.S. has prompted the expansion to Europe.”