x Abu Dhabi, UAESaturday 22 July 2017

Earnings flush at Royal Jet

Royal Jet, Abu Dhabi's private plane operator, has posted princely earnings, with revenues for one type of aircraft up by more than a quarter.

Shane O'Hare, the president and chief executive, said last year was a period of stability and persistent growth for Royal Jet. Sammy Dallal / The National
Shane O'Hare, the president and chief executive, said last year was a period of stability and persistent growth for Royal Jet. Sammy Dallal / The National

Royal Jet, Abu Dhabi's private plane operator, has posted princely earnings, with revenues for one type of aircraft up by more than a quarter.

The luxury flight service company said revenues for its Gulfstream aircraft rose by 27 per cent last year, while income for its Boeing Business Jets increased by 6 per cent.

The company, which does not publish full financial figures regarding its performance, said 2012 was its seventh consecutive year of profitability.

Shane O'Hare, the president and chief executive, said last year was a period of stability and persistent growth, when the company posted its best-ever first quarter result with a 17 per cent rise in revenues.

"This was then followed by the best summer performance to date with a 19 per cent increase in flying hours over the same period in 2011. And as the pioneer in providing Medevac services through its air ambulance service, Royal Jet has flown more than 1,650 missions to date and managed 333 patients in 2012," Mr O'Hare said. Last year, the company operated more than 630 VIP charter trips and 230 Medevac trips with a total of more than 2,800 flights to 317 airports in 149 countries.

Royal Jet is in the midst of a review into the replacement of its fleet and expects to make a recommendation to the board in the second half of this year, around Ramadan.

"These aircraft fly up to 25 years. [Ours] are only 12 now, but we believe because of the new products coming from the manufacturers … the market demand will continue for newer aircraft types," said Mr O'Hare.

Boeing Business Jets is taking part in the Abu Dhabi Air Expo alongside Royal Jet, which is the Boeing division's largest customer worldwide.

Boeing is a serious contender for the contract to supply the new aircraft, but analysing the benefits of each manufacturer is a long process, said Mr O'Hare.

"You buy a Boeing Business Jet off the assembly line from Boeing for somewhere in the range of US$50 million [Dh183.6m] or $60m, but then you have to actually fit out the interior. That's a long process, which can take a year or more and can take another $30m or $40m," he said.

 

gduncan@thenational.ae