BAE Sytems holds 'early talks' with Qatar Airways

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BAE SystemsBAE Systems is in early talks with Qatar AirwaysQatar Airways to provide a fleet of six Avro Business Jets (ABJ) for Qatar Executive, the airline's VIP corporate charter operation.

Steward Cordner, Vice-President of ABJ, which debuted at this year's Dubai Airshow, confirmed it to Emirates Business.

"We have spoken to people at Qatar Executive, but it is still too early to confirm anything," he said.

Headquartered in the United Kingdom, ABJ uses pre-owned passenger planes that are refurbished to meet VIP standards, with a starting list price of approximately $12 million (Dh44m).

Cordner said: "We approached Qatar Executive with a cost-effective solution for their regional flights. With only one out of 10 charter flights being long-haul, and the rest regional, why should the airline spend $40m to $50m on a new plane for short distances?

"An ABJ aircraft is reliable, has the wow factor to impress VIPs and, more importantly, is only a third of the price of what you would pay to any other manufacturer."

Talking about the timeframe of the partnership, Cordner said such deals take time to cement, and should it come through, ABJ would be able to provide Qatar Executive with a fleet of six in "a couple of years".

When contacted by the newspaper, Qatar AirwaysQatar Airways declined to comment. The Doha-based executive airline was launched earlier this year at the Le Bourget Paris Airshow. The current fleet comprises two new 11-seater Bombardier Challenger 605 aircraft, along with an eight-seater Bombardier Challenger 300.

"We have also spoken with representatives at Pakistan International Airlines during the Dubai Airshow and pitched the idea to team up with them for a future executive charter fleet. We see Asia as a potential market in the next few years," said Cordner.

Currently in the Middle East, BAE SystemsBAE Systems has delivered ABJs to the Dubai Air WingDubai Air Wing, the Presidential Flight of Abu Dhabi, the Bahrain Defence Force, as well as Kuwaiti First Trading and Construction.

ABJ's expansion into the region has come at a crucial time with last year's economic downturn crippling the global aviation industry. However, Cordner stated last year's economic downturn has had a positive impact on the company's business.

He said: "Our sales have lifted in the last year. In a bullish environment, if financing was not an issue, we would be having a slightly tougher time because people can afford to spend more.

"However, as financing is tight and people can afford a $12m plane, the feedback at the Dubai Airshow has been great."

He said the company has recorded a 100 per cent growth in the past two years, with nine aircraft having been converted from passenger to VIP. Each refurbishment takes approximately nine months.

Cordner said the company's aircraft is good to operate for 65,000 cycles, with the average age of fleet resting at 20,000 cycles.

"There is no age limit on planes after 40 years. It is all conditional depending on maintenance," he said.

Talking about the company's future plans, Cordner said: "By 2012, we hope to sell seven to 10 aircraft a year, depending on suitable platforms coming out of passenger operations that we can refurbish to VIP specifications."

By Bindu Rai

© Emirates Business 24/7 2009