Ben

US COMPANY TO INVEST $35 MILLION IN FBO SERVICES

Release date: 21 June 2008

XJet World, an exclusive US-based private aviation service provider has signed a deal with Dubai World Central Aviation City, home to the largest maintenance, repair and overhaul (MRO) centre in the world, to set up a fixed base operations (FBO) facility for business and private aircraft.

With an initial investment of US$ 35 million, this will be XJet’s first such facility in the Middle East.

The contract was signed at the recently concluded Aircraft Interiors Middle East (AIME) 2008 show at the Dubai International Exhibition & Convention Centre between Abdulla Al Qurashi, CEO, DWC Aviation City and Josh Stewart, President & CEO, XJet World.

The 158,444 square feet facility within Dubai World Central, the 140 square kilometre urban aviation project centred around the world’s largest international airport, will offer unparalleled levels of luxury and exclusivity, a personalized seven star service, and the finest facilities in the industry.

Commenting on the deal, Al Qurashi said: “XJet selected Dubai as it first Middle East base as DWC Aviation City has just the right infrastructure for the business aviation industry. No other region in the world has seen such high air transportation growth as the Middle East – 9% in 2006 and with more than 80 MRO hangar plots at Dubai World Central, regional business aviation growth is expected to more than double.”

XJet’s DWC FBO will have 60 dedicated employees and will be targeting selected clientele during its first year of operations.

“XJet is revolutionizing the world of private aviation and generating a buzz within the business aviation industry,” explained Stewart. “XJet will offer its seven star customer services topped with transparent economics and an unparalleled experience. XJet will provide comprehensive and seamless solution to its clients.”

DWC Aviation City is offering a platform to attract the best of aviation suppliers and MRO providers from around the world, complementing the region’s tremendous executive and business aviation growth. The first phase of the project is expected to be operational in 2009.

This isn’t the first place that I have seen attribution for the HE growth go to oil wealth in the Middle East and Russia. As the price of oil seems to be a driver of the current economic cooling in the US, oil demand will continue to decline slowly. Will this not cause a subsequent cooling fo the HE market?

Also, all of the jet manufacturers are on terrible back-order (see “Used Bizjets Now More Expensive Than New” on this site), will oil revenue perturbations open a risk to order cancellation in the future? Will any of the Jet OEM’s be at risk if this occurs?

Finally, I would love to know more about the electronics that are being put into these things, both the avionics as well as the IFE systems. Any insight or suggested links?

Thanks! Great Article!

There are many reasons. Firstly, in terms of technology and systems, the G5 is almost equivalent to the Airbus/BBJ. It is, to all intents and purposes, a fully realised airliner, just with slightly less metal.

Secondly, when you buy an Airbus or BBJ, you are generally buying a “green” aircraft, which means that your aircraft will be empty and unpainted. You will then have to contact a completion house like Jet Aviation, Raytheon, or Lufthansa (to name a few that I have worked with) to design, create and install an interior to your specification. This can add another $15-20m to your purchase price. With a Gulfstream, your purchase price includes the full interior, turn-key and ready to fly.

Finally, while lead times for Gulfstreams are long, lead times for Airbuses and Boeings are even longer, because you are competing against every airline in the world for a delivery spot.