Sunday, June 09, 2013

NasJet: Licensed operators losing business to unregulated market

June 09 2013 
The Saudi Gazette

NasJet, the private aviation company in the Middle East, speaks out against the illegal 'parallel' charter market likely to impact the growth of private aviation in the Middle East and future employment opportunities in the sector.

Research recently completed by NasJet, highlighted competition from licensed operators was healthy for the sector; however illegal charters offered by unlicensed operators would have a detrimental impact on the long-term growth of private aviation in the Middle East. 

 Many industry experts argue that there has been an increase in the number of so called 'gray' market charters, compounded by a number of factors including an overall increase in regional based aircraft, the sustained global economic downturn and political instability in some parts of the region.

All these elements, including passengers becoming more price sensitive and less focused on the operational side of flights, combine to further encourage private aircraft owners to operate illegally by generating revenue through third parties charters.

"If this trend continues it will have a negative impact on the overall growth of licensed operators in the Middle East, since they are unable to compete against hugely distorted charter prices," said NasJet CEO Ghassan Hamdan, guest speaker at the recent Middle East Business Aviation Conference in Jeddah.

NasJet has alone invested in excess of $350 million in safety and infrastructure to ensure clients have world-class pilots, since 50 percent of all fatalities in aviation are caused by pilot error. Licensed operators also have to ensure aircraft are maintained to a stringent standard set by the regulatory authorities such as GACA, FAA and EASA.


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