Kate Sarsfield/LONDON
Executive Jet's plan to set up a Middle East version of its NetJets fractional ownership programme is taking shape, following a Saudi Arabian Government decision to approve involvement by the programme's major risk-sharing partner, the Jeddah-based National Company for Air Services (NAS).
The company, owned by private investors, will be responsible for the day-to-day operation and supervision of the programme. Executive Jet, owner of the world's largest fractional ownership programme, will provide expertise and the brand name, while Gulfstream Aerospace will be responsible for supplying aircraft and maintenance.
Woodside, New Jersey-based Executive Jet claims that establishing a programme in the Middle East has been a challenge. "We have started with a blank sheet. The region is unique from a regional and cultural perspective and it has taken some time to understand the sensitivities within the market - we think we have the answers now," says the company.
Executive Jet says the Middle East is a virgin market, with little or no charter infrastructure. It claims, however, that plans to formalise this industry have now reached an advanced stage. "We are being guided by NAS which is driving the programme. It feels that there is a need in the region for a safe, efficient and flexible mode of business transportation and fractional ownership fills this niche," says the company. The programme will be similar in structure to NetJets schemes in Europe and the USA.
Gulfstream will supply up to 10 GIV business jets by 2001, including five for the core fleet and five for sale of shares. GVs are expected to be added at a later date. "We would also like to include mid-sized aircraft at some point," adds Executive Jet. The equity partners are targeting "high net worth individuals" within the Middle East and customers in Europe who will need to interchange with the Middle East programme. Demand is claimed to be high, with a variety of customers already in line to buy shares in the scheme.
A start-up date, name and programme base have not yet been decided. "There is still some work to be done, but we hope to make an announcement in the next couple of months," says Executive Jet.
Source: Flight International
