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Monday, 08 September 2008 | 04:19 UAE time

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Fighting fit

by Edward Poultney on Monday, 02 July 2007

On a tour through ExecuJet Middle East's Dubai headquarters, finishing in the VIP waiting room that leads out into the hangar, it is easy to see how the lifestyle appeals and why the private aviation industry continues to boom across the region.

You see more corporate buyers coming into the market now and that’s because they see it [private aviation] as a business tool.

Managing director Mike Berry has been at the forefront of the group's expansion since taking the pilot seat in 2004 following promotion from his role as financial director.

A serious, reserved South African, the former chartered accountant exudes confidence in ExecuJet's potential for success, a premise based on continuing the company's global business strategy.

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The Zurich-based company's Middle Eastern office was established in 1999, with ExecuJet ME the first private operator to secure an aircraft operating certificate (AOC), allowing it to run commercial operations out of Dubai.

The company's fleet in the region has grown to 12 aircraft, of which four are registered chartered planes. Berry says this makes it one of the largest private fleets outside government entities.

For Berry, the group's ‘total solution' offering - which covers sales, charter and maintenance - is the backbone behind ExecuJet's expansion.

"The infrastructure and the solution we bring around it is the success," Berry says. "It's much easier to try to sell someone a package when you have the whole aircraft management side behind it. We place the aircraft under the AOC and provide dispatching, landing, security services and the maintenance to back that up."

ExecuJet's position has also been underscored by the group's deal with Bombardier - the third largest aircraft manufacturer after Boeing and Airbus - to be the manufacturer's global distributor. Indeed, the company represents Bombardier's sales side in more than 30 countries. The December 2005 move to new headquarters in Dubai's Airport Free Zone cemented the affiliation by allowing ExecuJet to not only house replacement parts for the entire region, but also carry out any technical work on site.

"We're the only approved Bombardier maintenance organisation in the region; customers no longer have to take their aircraft through to Europe for every tweak," Berry says.

The marketing approach for such a product is highly targeted, with the focus on creating long-term partnerships and securing more customers. A network of high-net worth individuals, local companies and international corporations based in the region has been developed to personalise the offering to customers. Those who make use of the charter service are also seen as potential buyers.

"There's a normal cut-off," Berry says. "When you are chartering an aircraft for 200 or 300 hours per year you join the market as a potential owner; this is the long-term approach.

"When we have a prospective buyer, it's about establishing what the requirements are, once we've done that we can see if there's excess capacity on an aircraft for charter." This aircraft sharing compromise also illustrates a switch in the customer profile since ExecuJet's original deployment in the region. "From the sales point of view it used to be aircraft sales for high-net worth individuals but that's changed," Berry says.

"You see more corporate buyers coming into the market now, and that's because they see it as a business tool. It saves the CEO, and the company, time; the directors can get around the region in a shorter period than a commercial flight."

Cultural affinity

Berry has worked in finance across several industries prior to joining ExecuJet. His track record includes stints in manufacturing and insurance before a 10 year spell at Motorola, where he was responsible for the Middle East, Africa, Central and Eastern Europe.

The role brought Berry to the region, helping him understand diverse cultural and business outlooks. He admits the experience has proved invaluable when dealing with clients from varied backgrounds in the aviation industry. "One of the things about being a finance person is that you can take a lot of experience from one industry to another; benchmark standards, ways of operating, ways of increasing profits," he says.

"Dealing with different people and industries teaches you a lot. My time with Motorola was particularly beneficial because I was responsible for a large area, so I had a lot of cultural exposure."


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