Airbus bids for 60% of Middle East’s corporate jet market following launch of new model

Plane maker Airbus aims to capture 60 per cent of the Middle East’s corporate jet market following the launch of its latest ACJ TwoTwenty business jet liner, as the bulk of region’s fleet is primed for renewal or replacement.

The Middle East, which is home to about 60 of more than 200 Airbus corporate jets currently in service worldwide, is a key market for Airbus, which has been struggling because of the Covid-19 pandemic – one of the worst events to rattle the aviation industry in decades.

“We currently have more than 50 per cent market share in the region, but with this new jet we are probably looking to get 60 per cent share in the bizliner market,” Benoit Defforge, president of Airbus Corporate Jets, told The National.

An ageing fleet in the Middle East could also provide a much-needed boost for Airbus, according to the executive.

“One third of Airbus Corporate Jets flying around the world are in the Middle East. It is an ageing fleet,” he said. “There will be many replacements because the fleet needs to be renewed … [and this is] a huge opportunity.”

The average age of the fleet in the region is 15 years, Mr Defforge said.

“If you look at the average age of the fleet in the region, and the volume of the fleet in the region, the product [ACJ TwoTwenty] is matching perfectly.”

For an ultra-long range business jet, “it has a very attractive price”, he added.

The UAE and Saudi Arabia are expected to account for the majority of fleet renewals in the coming years, Mr Defforge said.

Airbus reported a €2.7 billion ($3.18bn) loss for the first nine months of the year as revenue fell by 35 per cent year-on-year to €30.2bn.

However, the private jet market has offered a glimmer of hope for the industry as wealthier travellers charter jets instead of taking commercial flights.

“Recovery is higher for business aviation than the airline industry,” said Mr Defforge. “Using a private jet has become convenient because you know who is using the plane.”

Airbus is hoping to capitalise on this demand with the ACJ TwoTwenty, which was launched last month. The aircraft can fly for up to 10,500 kilometres, connecting travellers between major cities such as London and Los Angeles or Tokyo and Dubai – meeting a demand for business jets that have both range and space.