Private jet operator Enthral Aviation, which operates in India and Canada, is set to enter the Middle East market, setting up a subsidiary in Dubai to undertake charter and aircraft management operations in the UAE and neighbouring countries, the company top executive said.
The company also plans to offer an aircraft co-ownership model through which it aims to rope in Middle East and India-based investors under a revenue-sharing arrangement.
“The Middle East, especially Dubai, is a great global hub for private jet and helicopter flyers, with its status as one of the leading global financial capitals and strategic location. Enthral Aviation is looking forward to grabbing the opportunity that UAE and neighbouring countries have to offer by setting up a subsidiary in Dubai,” Tapish Khivensra, managing director of Enthral Aviation, told Arabian Business in an exclusive interview.
Entrepreneur Khivensra said Enthral Aviation is seeking the required business license from Dubai and the UAE aviation authorities and that the company was aiming to commence operations in Dubai by December this year.
“We will be operating in the region with an airport operator certificate (AOC) from Malta or San Marino. There are many like Empire Aviation which operates [in the UAE] on San Marino and Malta licence,” he said.
Enthral’s move to spread its wings to the Middle East is seen by aviation industry analysts as early signs of the rising confidence of global investors in the region as a high growth potential aviation market, even as the pandemic-hit industry is struggling to come out of the turbulence globally.
Enthral Aviation, set up as a startup in India in 2015 by Khivensra, has been operating private jets between various Indian and UAE cities on seat sharing basis in 2020 and 2021 to cater to Indian businessmen when many airlines had stopped or limited their connectivity due to the pandemic.
Many charter flights fly on a daily basis to Dubai or Abu Dhabi from India.
Khivensra also revealed that the company was in advanced stages of discussions with both aircraft owning companies and potential investors based in the Middle East and India, as it plans to acquire these aircraft under the shared-ownership model.
“We are in the process of acquiring five aircraft to start with. Mostly it would be Cessna Citation or Bombardier Challenger 300 and 650,” he said.
“We can see aircraft coming in the coming few months as due diligence is going on,” Khivensra said.
He, however, declined to reveal the names of any of the potential investors, only indicating that some of them are business houses.
As part of its proposed strategy to grow its client base and revenues, Enthral also plans to offer empty seats on its flights to business class passengers in commercial airlines at highly competitive fares.
“We would be selling empty flights at competitive rates, which sometimes can be cheaper than a business class ticket on an airline,” Khivensra said.
Khivensra said initially the company would be supporting its Indian subcontinent customers based in the Middle East and also international customers having offices in the Gulf region.
On the proposed co-ownership model, Khivensra said such aircraft will be fully operated and maintained by Enthral and the profits from those planes will be shared with the co-owners.
“We are looking for having 3-6 owners of individual/corporate investment in a single aircraft, and accordingly the percentage holding would be divided as per the investment.”
Khivensra said the co-ownership model is already a success in North America and Europe, while in India and the Middle East the trend is yet to catch up. We are specifically looking for pre-owned mid-size jets and super mid-size jets in the price range of $5-$15million.
Business aviation market in the Middle East and India have seen a spike to over 10 percent in the recent months and market experts predict an exponential growth going forward, based on the current trend of rising sale in pre-owned aircraft purchases as the well-heeled opt for safe modes of travel these days, according to Khivensra.
The business aviation market is estimated to be about $38 billion, of which the Middle East market accounts for 10-12 percent.
Empire Aviation, VistaJet and Falcon Aviation are among the ventures which are currently operating private jet services in Dubai and the larger UAE market.
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