CJI Middle East & Africa 2020 Conference Report
Coping with the impact of Covid-19 coupled with the prospects for growth underpinned presentations at our CJI Middle East & Africa 2020 Conference staged on September 15th and 16th. Words: Mike Stones
THE EARLY ARRIVAL of an effective Covid-19 vaccine and learning to live with the “Now Normal” of the global pandemic were twin themes that underpinned Corporate Jet Investor’s second virtual conference.
Andy Christie, Air Charter Service’s Private Jets director, summed up the mood for many. “Until there’s a vaccine, which is the million-dollar question, we are probably going to see more of what we have seen so far. A lot of need-to-fly customers rather than leisure flying. While enquiry levels are high, it is getting the actual flights off the ground that presents challenges.”
The easing of border controls would help too, he added. “Hopefully, the relaxing of some borders will start to see business travel activity pick up again, as that is really some way behind.”
Mohammed Al Husary, Executive President UAS Trip Support, said frequent legislative changes in the Middle East and elsewhere forced flight planners to consider a wider range of factors to keep passengers and crew safe and to run operations efficiently.
“Flight planners need to plan well in advance of flight operations asking a series of very important questions,” he said. “Those include: Are night stops permitted at the destination airport, will the crew be tested on arrival and is there a quarantine requirement on arrival?”
Health screening has become “a massive consideration”, with many countries demanding that passengers supply a negative PCR (polymerise chain reaction) test before boarding the plane. Also, regulations continued to differ around the world. Continual regulatory changes were part of the “Now Normal” and businesses operating in the Middle East and Africa should prepare now “to outperform the recovery”, according to James Hardie, head of Marketing Information Management Services, EMEA at Collins Aerospace, in the conference’s opening session. Borrowing a phrase coined by the wife of Steve McManus, GE Aviation sales director, Hardie told the conference’s 250-plus delegates: “Thinking of this as the now-normal, not the new-normal, is a telling way of looking at the situation.” He added: “If there are trends, it is that Covid-19 has advanced what would have taken five years [to accomplish] in just five minutes.”
Examples included the rise of video conferences and aircraft pre-purchase inspections conducted by video link.
Preparing for the recovery now would mean industry players are well-placed when the downturn ends, said Hardie. “It’s a great time to buy [a business jet]. You can prepare well if you have a long view and have a long intention to be in the industry and are prepared to act now to outperform the recovery.”
An equally upbeat message came from Yosef Hafiz, Vice President Sales and Marketing, NASJET. While Covid-19, and the travel restrictions that had followed in its wake, had hit the sector, the medium-term prospects for growth were encouraging, he said. The Saudi Arabian government’s crackdown on illegal charter plus big infrastructural projects, such as the $500bn city of Neom currently under construction on the country’s north west coast, would drive the growth of tourism and help to position business aviation for growth.
Meanwhile, for those planning aircraft transactions in Africa, gaining good advice is an essential first step, according to Dawit Lemma, founder and CEO of Addis Ababa-based Krimson Aviation. “Financing is a major, major, major issue here on the continent of Africa.” But since there are 54 countries in Africa, there could be no single solution for those looking to purchase, charter or lease an aircraft, he said
Conference in numbers:
31 Speakers
25 Countries
9.5 Hrs of content
13 Sessions
5 Solo presentations
250 VIP delegates
Industry sponsors: With thanks
Event partners
UAS International Trip Support
Lead sponsors
Collins Aerospace
DC Aviation Al-Futtaim
JSSI
Sponsors
ExecuJet
GE Aviation
Honeywell
Virtual conference highlights
Hover over the picutres for the highlights
Virtual conference highlights
01. Don Walsh – Stonebriar Commercial Finance “We are in very regular contact with all of our clients and none of them are looking to sell their airplanes.” Session – Aircraft finance in the region
02. Simon Davies – Global Jet Capital “You might think that people would want to get out of aircraft ownership. But one of the drivers that’s unique in this case is the ability of people who want to get from A to B and who are struggling to get there [due to the shrinkage of commercial airline services].” Session – Aircraft finance in the region
03. Mark Winzar – Jet Support Services Inc. “It’s clear to me, this is an opaque market with lack of visibility [about operation and maintenance costs] that will ultimately limit growth. It’s difficult to go back to an owner with a $3.2m bill without transparency.” Session – The Value of Data to Business Aviation
04. Mike Berry – Luxaviation Group “As borders open and commercial airlines start, people can fall back on the norm. That will be a challenge for our sector.” Session – Flying and operating in the Middle East
05. Johan Blitz – UBS Switzerland AG “We have a great opportunity for the entire industry if we manage to convey the right message to potential buyers who have the money but have not been flying so far.” Session – Aircraft finance in the region
06. Gavin Kiggen - ExecuJet “They are estimating a drop of between 60-70% in travel in South Africa across the board – not just commercial aviation but general as well.” Session – Country focus: South Africa
07. David Minty – Investec “There’s been a big increase in Zoom meetings. But Africans like to look people in the eye, shake hands and build a relationship.” Session – Country focus: South Africa
08. JP Fourie – National Airways Corporation and African Business Aircraft Association “The divisions performing well are essential services such as emergency medical, mining, contract flights or international flights – anything that’s time bound or contract related.” Session – Country focus: South Africa
09. Rob DiCastri – Royal Jet “These types of [leisure] customers, these resorts and groups who need tourism, they can’t bring those people in on a Global, a Gulfstream or a Falcon because it’s not big enough. It’s the 30-, 40-, 50-seat ACJs and BBJs with the space that can really make this work.” Session – Opportunities in the VVIP market
10. Ritu Bagri – Vertis Aviation “We have seen a lot on enquiries from people who were flying first and business class who want to move onto smaller jets.” Session – The Middle East Charter Market
11. Holger Ostheimer – DC Aviation Al-Futtaim “The level of flexibility and bespoke comfort, when people make their first contact with this type of flying, will entice them to come back. You used to have to go out and dig deep [to find new charter clients], but now they're coming to us.” Session – Flying and operating in the Middle East
12. Abdul Charafeddin – UAS International Trip Support “Growth was not just focused on the Emirates or the Saudi market but spread throughout neighbouring counties… We still see a lot of room for expansion… As for consolidation, we don’t see this happening or 10,15, 20 years. There’s room for growth at all levels.” Session – Flying and operating in the Middle East
13. Michael Nelson – Clyde & Co “I’ve seen banks which are less experienced with the asset produce a corporate banking deal or a real estate deal. They don’t consider the need to take specific security over the aircraft, references, warranties and key contracts.” Session – The costs of owning operating and chartering in Africa
14. Jean-Noel Robert – Airbus Corporate Jets “The ACJ fleet available for charter in the Middle East is at around 75% of the flight level achieved last year. But that’s higher than the rest of the world where the ACJ fleets are at 60%. [compared with last year].” Session – Opportunities in the VVIP market
