The company has a fleet of 11 executive jets. Courtesy of Royal Jet.
The company has a fleet of 11 executive jets. Courtesy of Royal Jet.

Abu Dhabi's Royal Jet sheds jobs



Royal Jet, the Middle East's largest executive jet operator, has cut jobs across the company as it undergoes a sweeping review of its operations.

The changes come as demand for business jet charters among corporate travellers has fallen by about 25 per cent in the region in the years after the economic downturn and as the industry's recovery is being hampered by regional unrest.

Officials at the company, which employs 325 staff and is based in Abu Dhabi, described the cuts as "relatively minor" and part of normal business practices to ensure continued profitability.

But it also acknowledged the strategic review had led to redundancies across various departments including commercial, finance, administration, human resources and marketing.

"Market conditions, competitive factors, pricing and the global economy have all changed significantly," said Shane O'Hare, the chief executive of Royal Jet. "We undertook a review and made a realignment with our strategic goals.

"We looked at every element of the business where we can have a better, leaner, more productive, more efficient organisation."

Aviation and aerospace are key economic growth drivers for the UAE economy, according to the Government's development plans, with the country attracting professionals for passenger airlines, maintenance companies, cargo airlines and executive jet operators. Some executive jet companies have hired staff let go by Royal Jet.

The company declined to describe the extent of the redundancies but stressed it did not affect staffing in service quality and safety. Despite the changes, Royal Jet has continued to be profitable and expects its business to grow 15 per cent this year, Mr O'Hare said.

The company has a fleet of 11 executive jets including six Boeing 737s, making it the largest Boeing business jet operator in the world. A major share of its business comes from Abu Dhabi Government agencies and corporations and high net-worth individuals.

It also markets its services internationally including in the UK, Switzerland and China. The company's two shareholders are the state-owned Presidential Flight and Abu Dhabi Aviation.

While Europe and the US have fared worse with corporate demand for executive jets down as much as 40 per cent, the Middle East region has also suffered, Mr O'Hare said.

"We've had the private jet industry hit hard from the global recession," he said, noting several European operators had relocated aircraft to the Middle East to try to ride out the downturn.

"Since December, market conditions have become more stable, however, and are returning to growth pattern. This year I am pleased to say the market is coming back."

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Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates

The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:

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ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.

ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.

ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.

IN WITNESS WHEREOF the undersigned have signed this Treaty.

DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.

Signed

Geoffrey Arthur  Sheikh Zayed

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