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Flying

luxury amid turbulence

The CEO of luxury flight services company, Rizon Jet, Captain Hassan Al-Mousawi, made strong allegations recently against the Qatar Civil Aviation Authority (QCAA), saying it was hampering rizon jets growth. In an exclusive interview with Qatar Today, Al-Mousawi, a passionate airlines professional, expanded on the allegations.
by sindh u n a i r 6 2 Qatar Today
MARCH 2013

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-Mousawi would perhaps qualify as the only Qatari to have learned the ropes of the airlines sector by working in a developing country before returning to his home country. According to him, the QCAA was reinforcing the monopoly enjoyed by Qatar Airways, when their job is to be the mediator. They are supporting the bigger player which is just not fair, he says. When Qatar Today put this allegation to the QCAA Chairman, HE Abdul Aziz Al-Noaimi (also see page 47)he replied, QCAA is responsible for regulating aviation operations and managing the aviation hubs in Qatar, and has the right and the full authority to take the appropriate action in case any airline company operating within the Doha International Airport breaks rules and regulations. Al-Mousawi categorically says that no laws have been broken, and goes on to say that Rizon is willing to be penalised if that is the case. According to Al-Mousawi, Rizon Jet is now at a juncture where they (the board of directors) have to decide whether to continue, and absorb the losses, or cut their loses, shrink operations or just decide to move their operations away from this market and go to other countries where private entrepreneurs are comparatively welcome. It is a pity that such a beautiful facility, which has incurred huge investments, will not be used to its maximum potential, he says, adding, It is also a pity that when in one way the country is trying to encourage private enterprise yet in other moves by one of its government bodies it is discouraging existing investors. Setting up a luxury jet business is no simple matter says Al-Mousawi, reflecting on the process involved before Rizon Jet became part of the aviation sector in the country. Background Rizon Jet was founded in Sharjah, UAE in 2006 and is headquartered in Doha, with additional operating bases strategically located in the United Arab Emirates and Europe (United Kingdom). Until 2007, it was not allowed for private investments in the aviation sector. In 2007, the council of Ministers approved the establishment of private jet and air ambulance businesses. Fifteen companies applied for this, of which seven got prequalified. Out of the seven, only two got licences and went on to deliver the rest of the formalities according to the terms and preconditions, all mandatory for issuing the permit. In the end, only one company, Rizon Jet, exercised the privilege of the permit and is (so far) in business, he explains. The risks involved in the airline business, the high

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investments and the time needed for the business to grow and conquer the market make this business less lucrative, says Al-Mousawi, explaining the lack of interest. Rizon Jet focuses on providing a comprehensive suite of private aviation services like aircraft charter, aircraft maintenance, management and use of VIP Terminal, aircraft sale, acquisition and consulting. In March 2012, Rizon Jets VIP terminal was officially inaugurated under the patronage of the Chairman of the Qatar Civil Aviation Authority. Initially the companies were allowed to use the VIP facilities of Qatar Airways, he narrates, but later, as we realised that there was scope for more business, we applied to set up our own terminal. The land was allocated through the Prime Ministers office on the condition that we build the terminal, equip it and run it for our own jets and for other private jet usage. Explaining the numbers involved in the current business, he says, In 2012 there were about 1,500 private jet movements in Qatar. Compare that to 80,000 movements in and out of the Doha International Airport, private jet is just a small portion of a large business. Of the 1,500 movements, 300 were Rizon Jets own and 400 were movements by other private jet companies that came through Rizon Jet facilities. The customer pays more for using our facilities but this segment of customer doesnt mind shelling extra money for the luxury, the privacy and the fivestar facility. By making our facilities available to other private jets we were not reducing the income of Qatar Aviation Services (QAS) which enjoys a monopoly on ground handling in Doha International Airport, he says. From November 2012, Rizon Jet was informed that it was no longer authorised to use its facilities for third-party jets. We have built such huge facilities to accommodate other private jets. Since we were issued the licence, we have been providing our facility for private jets. In fact the movement of private jets using our facility were more than our own, and now this is a huge blow for us as it cripples our major activity he says. This, and another instant when Rizon Jet approached the authorities to set up a travel agency, as a one stop-shop for customers travel needs and was refused, reflects a lack of support from the authorities, according to Al-Mousawi. The licence was issuedat the end of May 2012 and six months later it was withdrawn with the reason given that the travel agency was located on the land of Doha International Airport which is for the exclusive use of Qatar Aviation Services (QAS). Rizon Jet, says Captain Al- Mousawi, will approach the judicial system for an explanation, as there has been no violation of any kind of any conditions set by the QCAA

Rizon jet is in the development phase and hence cannot accept the losses and the hindrances that dot our path at this stage.
Captain Hassan Al-Mousawi
ceo, Rizon Jet

MARCH 2013

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