Bizjet operators failing in DXB?
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Bizjet operators failing in DXB?
Heard through the grapevine that a few bizjet operators in AUH and DXB are failing primarily due to the GFC (global fin crisis) and sending crews home. Is this true? I suppose operators are always failing due to gross msmangement but has there been a spike recently like there has been in the US?
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A combination
I feer that the bubble is bursting.
So many new aircraft ordered, in last two events: Air Show, and MEBA.
Like many of the "projects" in UAE, it is believed that money can buy any solution: employ at the lowest possible cost, the "peanut/monkey", and the big investments will always pay thier way.
Or the image of the biggest, fastest, will drive the ego.
Several corporate / charter operators are in deep trouble, and in discussions with each other, to merge.
Lets wait and see.
glf
So many new aircraft ordered, in last two events: Air Show, and MEBA.
Like many of the "projects" in UAE, it is believed that money can buy any solution: employ at the lowest possible cost, the "peanut/monkey", and the big investments will always pay thier way.
Or the image of the biggest, fastest, will drive the ego.
Several corporate / charter operators are in deep trouble, and in discussions with each other, to merge.
Lets wait and see.
glf
I would tend to believe all of the above.
Knowing that it is culture in these parts to dismiss your invoice as mearly paperwork...and nothing to worry about.
And.... the fact that some of our guys have done very little this tour I can believe that those operators who have to fly to earn... not the ones who live off management fees are probably in very deep dodo now.
It will clean the decks for a while and clean out some of the hype but in doing so it will hurt a lot of our fellow aviators and that is the hard thing to watch.
lets see what happens in the next few months.
Knowing that it is culture in these parts to dismiss your invoice as mearly paperwork...and nothing to worry about.
And.... the fact that some of our guys have done very little this tour I can believe that those operators who have to fly to earn... not the ones who live off management fees are probably in very deep dodo now.
It will clean the decks for a while and clean out some of the hype but in doing so it will hurt a lot of our fellow aviators and that is the hard thing to watch.
lets see what happens in the next few months.
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Have any of you actually got some facts to add to these very vague allegations? Suggest checking the GA forum to see what damage could be done by starting the spread of rumours that companies are in trouble.
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There ARE layoffs and not vague allegations as commented earlier.
Remember, many aircraft operated by the corporate companies are CMI only. Crew, Maintenance and Insurance. The aircraft are owned by private individuals or companies. Whats one of the first things a company gets rid of when trying to cut costs? Corporate transport!
The layoffs MAY have little to do with mismanagement alone. If the plane your flying gets sold, you lose your job.
Vertigo, I don't understand the consequences of discussing the rumours. Its happening, this is the Middle East forum and its a rumour network
DB
Remember, many aircraft operated by the corporate companies are CMI only. Crew, Maintenance and Insurance. The aircraft are owned by private individuals or companies. Whats one of the first things a company gets rid of when trying to cut costs? Corporate transport!
The layoffs MAY have little to do with mismanagement alone. If the plane your flying gets sold, you lose your job.
Vertigo, I don't understand the consequences of discussing the rumours. Its happening, this is the Middle East forum and its a rumour network
DB
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Budgie, the subject is not about lay-offs or management agreements being lost. It is about Bjet Operators failing = Going (or close to) bust. We all know about corporate aircraft being sold and pilots being retrenched around the world and in ME, but I am await word on who is really in trouble.
By all means discuss the rumours... but suggest thinking about consequences.
Cheers
By all means discuss the rumours... but suggest thinking about consequences.
Cheers
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there are two guys that are closing down. I won't mention names though on this public forum.
Please go ahead with the names (I can imagine one must start with the letter G...)
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A lot of UAE operator are failing because of bad management. The World Financial Crisis is th eicing on the cake. These guys here in the Middle East just want to show off and make people believe that they are majestic and grand. They spend a fortune to get the company started and then they realize that they do not have money to continue running the show.
So they start cutting costs and the first ones to be screwed are the pilots. Then they stop paying the handlers and then fuel...
A perfect example of this is Prestige Jet, who owes everyone money from Abu Dhabi all the way to Jordan. They shuffle handling companies because they owe most of them a lot of money. They tell them that they will send a payment so they can get their flights out.
Gulf Jet in Dubai is out of business due to no cash flow. Their pilots have not been paid for the last three months and will not get paid.
This is the daily live and brean and butter of the middle east...this is the way they like to operate and this is the way that they will continue to operate...scrweing the unsuspecting western pilot... they get them here and then they screw them over...they know that most will just leave and not try to recover what is owed to them.
So they start cutting costs and the first ones to be screwed are the pilots. Then they stop paying the handlers and then fuel...
A perfect example of this is Prestige Jet, who owes everyone money from Abu Dhabi all the way to Jordan. They shuffle handling companies because they owe most of them a lot of money. They tell them that they will send a payment so they can get their flights out.
Gulf Jet in Dubai is out of business due to no cash flow. Their pilots have not been paid for the last three months and will not get paid.
This is the daily live and brean and butter of the middle east...this is the way they like to operate and this is the way that they will continue to operate...scrweing the unsuspecting western pilot... they get them here and then they screw them over...they know that most will just leave and not try to recover what is owed to them.
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Gulf Jet is bankrupt, owes lots of money to its piltos and crew. Bad management, robbery form their Indian MD, who fled the country with a lot of cash... and just they way it was operated by its chairman caused it to close down. Now many pilots are without jobs and owed a lot of money, money which they will never see.
Prestige Jet is the in the verge of bankruptcy, owes millions of dollars to handlers, fueling companies, hotels, pilots, cabin crew, caterers... Their flights are being refused to being handled becasue of lack of payment.
Was in Riyadh talking to one of their crews who were grounded because they owe a lot of money to Arabasco and will not be allowed to leave until they pay what is owed to them for that particular aircraft.
Execujet Middle East is also in very bad shape. They have had to lay off 8 pilots and have lost 3 aircraft management contracts.
Things aren't good in Dubai. There have been over 90,000 cancelled visas since the begining of the year of all the people leaving back to their home countries...
Not good times for Dubai at the moment.
Prestige Jet is the in the verge of bankruptcy, owes millions of dollars to handlers, fueling companies, hotels, pilots, cabin crew, caterers... Their flights are being refused to being handled becasue of lack of payment.
Was in Riyadh talking to one of their crews who were grounded because they owe a lot of money to Arabasco and will not be allowed to leave until they pay what is owed to them for that particular aircraft.
Execujet Middle East is also in very bad shape. They have had to lay off 8 pilots and have lost 3 aircraft management contracts.
Things aren't good in Dubai. There have been over 90,000 cancelled visas since the begining of the year of all the people leaving back to their home countries...
Not good times for Dubai at the moment.
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Bad management, robbery form their Indian MD, who fled the country with a lot of cash...
Last edited by S.F.L.Y; 3rd Feb 2009 at 14:43.
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Chill!!!
OK. Let's break it down, again :
We have -
1. GJ - New AOC, never made money anyway, good time to call it quits.
2. PJ - Apparantly going down, but this rumour is being spread en masse by three new members and distributed over at least 3 threads. Sorry, it just feels that there are some sour grapes on display here.
3. EJ - Made several pilots redundant and lost management of 3 aircraft. This could be due to several factors. By my count that would leave them with about 12 more to work with.
With the exception of GJ, I don't see real reason to panic and state that people are 'in bad shape'... Want to argue - Show us facts or
We have -
1. GJ - New AOC, never made money anyway, good time to call it quits.
2. PJ - Apparantly going down, but this rumour is being spread en masse by three new members and distributed over at least 3 threads. Sorry, it just feels that there are some sour grapes on display here.
3. EJ - Made several pilots redundant and lost management of 3 aircraft. This could be due to several factors. By my count that would leave them with about 12 more to work with.
With the exception of GJ, I don't see real reason to panic and state that people are 'in bad shape'... Want to argue - Show us facts or
