Low-cost Carrier Migration Could Ease Bizav Access in Dubai
Local company ASM is discussing new aircraft management opportunities
Aircraft Services Management's CEO Vito Gomes sees business aviation growth opportunities in the UAE and Saudi Arabia. © ASM

The UAE's Aircraft Services Management (ASM) expects a migration of low-cost airlines from Dubai International Airport (OMDB) to allow business aircraft operators wishing to use the airport closer to the city center to continue to do so.

Migration of business aviation from the city's main airport to facilities at Al Maktoum International Airport (OMDW) began in 2013. After the proportion of this segment of traffic at the new airport hovered around the 70% mark for a decade, recent anecdotal evidence points to around 90% of Dubai corporate and private operators using the more remote airport.

"Over the next few years, I expect arrangements will be made to relocate some low-cost carriers to Al Maktoum International Airport, which could help ease congestion [at Dubai International]," Vito Gomes, CEO of Dubai-based Aviation Services Management, told AIN. "Recently, Flydubai has been allocated space at OMDW to build its own terminal, signaling a shift in that direction."

According to ASM, holding times at Dubai International can sometimes range from 15 to 20 minutes. However, the growing interest from scheduled airlines around the world to come into Dubai means that taxi wait times are often significant for all airport users and could increase.

Gomes said general aviation in the UAE is growing fast, especially In Dubai with several new operators entering the market. ASM’s managed fleet includes two Bombardier Learjet 60XRs and a recently acquired Challenger 605.

International Operator Interest

"Several non-A6 [non-UAE-based] operators are active in the market today, contributing to the increasing commercial charter business capacity in the region. We as a company are growing in terms of general aviation. Today our aircraft sometimes fly 60 hours to 70 hours a month or more, and this is a good development. There is an advantage in terms of charter.”

Its aircraft are used for a variety of purposes, including business travel, VIP charters, and medevac operations. “We provide a comprehensive range of medevac services, from general patient transfers to highly critical missions requiring ECMO support,” he said. “For long-range transfers, our team is fully equipped to facilitate wing-to-wing transfers, ensuring seamless continuity of care across distances.”

ASM uses its client database for half of its business, with the rest coming through brokers.

“Today, many brokers are in the market and they often have access to a broader client base,” he said. “While it can sometimes be challenging to identify the real end user of a request, brokers provide valuable support in connecting operators with new opportunities. At times they have access to more clientele than we do, making them an essential part of the process.”

ASM is also looking to develop its Saudi Arabian business and recent meetings with officials at the country's General Authority of Civil Aviation have paved the way forward. 

Saudi Expansion Hopes

“Saudi Arabia does not permit foreign aircraft to operate domestic flights directly,” Gomes said. “To overcome this, we have established arrangements with local operators through lease and charter agreements, utilizing their [air operator certificates] to operate domestic flights. 

“Our goal is to expand these services as the general aviation sector in Saudi Arabia gradually opens up. However, progress will take time, as GACA is in the process of updating certain rules and regulations, which we believe will ultimately support our operations.”

There is growing demand for midsize business jets within the country, as most domestic flights are of about 1.5 to two hours. ASM believes its fleet is well suited to meet this need, especially since most existing operators use larger aircraft, which are less cost-effective for smaller groups such as families of six or seven people. A smaller aircraft offers a far more practical and economical option for such travelers, Gomes believes.

As with everyone else, an improvement in hangarage is also an important priority for ASM. “I’ve had discussions about hangarage in Riyadh since, at present, there are no facilities available,” Gomes said. “If we begin operating there and need to keep an aircraft on the ground for more than a day, leaving it exposed to the elements isn’t an option. Riyadh's hot, dry weather can be tough on aircraft, and Jeddah’s humidity brings its own set of challenges.”

Saudi capital Riyadh is the heart of commercial activity, with the highest volume of traffic flowing in and out, Gomes explained. Jeddah comes next, while the new city of Neom and Al-Ula International Airport are also seeing increased movements.

However, not all Saudi airports have proper VIP facilities for general aviation yet, which is something that will need to change as the market continues to grow.

ASM’s position in the international scheduled airline fuel supply market means it has established agreements with a range of third-party service providers. Fuel is one of the largest operational costs, accounting for 45% to 50% of total expenses. 

“Thanks to our long-term contracts with major airlines and general aviation clients, we’re able to offer competitive fuel prices,” he said. “Our fuel volumes exceed 500 million gallons a year, which gives us the leverage to negotiate better rates for our partners.”

As ASM continues to grow, aircraft management opportunities are on the radar. “Yes, that’s something we’re actively exploring,” he said. “As an aircraft management company, we have the advantage of being able to provide most services in-house—something many operators in this region cannot do. This includes fuel, flight support, and concierge services, all of which we handle internally.”