Aqaba Gate Aviation

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Aqaba Gate Aviation is an independent provider of airframe MRO (Maintenance, Repair, and Overhaul) services in the Middle East.

The Company is based at King Hussain International Airport in Aqaba, Jordan, where its facilities cover a total area in excess of 75,000 m2, including space for hangars and workshops.

The hangar can accommodate four wide-body aircraft, eight narrow-body aircraft, or a combination thereof. 
Aqaba Gate Aviation offers customer satisfaction that is based on price, flexibility, quality, safety, turn-around times, and an attractive geographic location.

Aqaba Gate Aviation’s catchment area for heavy airframe maintenance includes Middle East, Russia and African aviation markets.

Key identified opportunities include African clients, where there are few credible MRO service providers and where accessing skilled labor is a substantial challenge.

The business is currently run as a one-shift operation, which means that the existing infrastructure can accommodate significant organic growth with modest capital expenditure.

Through its Jordan location, Aqaba Gate Aviation has the ability to recruit and retain skilled aviation mechanics Aqaba Gate Aviation has a total of 50 employees at very attractive salary levels.

This cost advantage has enabled Aqaba Gate Aviation to achieve margin levels that compare favorably to other MRO service providers globally.

Aqaba Gate Aviation’s ideal geographic location, aside from easy access to its fast-growing core Middle East market, its Jordan location allows the company to penetrate a diversified client base from Europe, Russia, Africa, and parts of Asia. 


Well-invested facilities located in a highly strategic location 
The Company’s key assets are its hangar, tools and equipment that are contained in  king Hussein International Airport, which is complemented with workshops, stores, and ground side offices (built-up area of 20,000 m2) and an apron area with space for (14) aircraft. 

Key demand driver for the airframe MRO market is the underlying global air traffic volume, which has demonstrated strong resilience across economic cycles and is expected to show continued strong growth over the coming decades, largely driven by emerging markets.

The growth in the outsourced airframe MRO market is also dictated by airlines’ demand to using third-party service providers versus performing airframe MRO services in-house.

Setting up an in-house airframe MRO operation involves substantial investment and time, which generally makes it uneconomical for smaller airlines.

In addition, the geographical location of the airline’s operational hub is of critical importance since airframe MRO is a labor-intensive service that can only be economically justified in regions where labor costs are low.

As such, few US and European airframe MRO operations (whether in-house or outsourced) are consistently profitable.

Based on its excellent competitive factors such as location, environment and skilled labor availability, management expects Aqaba Gate Aviation to continue to grow at healthy rates going forward. 

Aqaba Gate Aviation’s strategic location provides a significant addressable market, which includes the core Middle Eastern airlines as well as European (incl. Turkey), Indian, Russia / CIS, and African carriers. 

  • Favorable investment climate in Jordan. 
  • Situated in the heart of the convergence of Europe, Asia and Africa, Jordan is a beacon of stability and a proven safe haven that offers investors a highly strategic location for doing business in the Middle East and beyond. 
  • Jordan provides a strong business-enabling environment built on a long-standing commitment to free market principles and the rule of law, investor-friendly regulations, a healthy financial system regulated according to international standards, and a highly qualified, competitive, and bi-lingual labor force.
  • Aqaba Gate Aviation can offer an unrivalled value proposition to clients based on price, flexibility, quality, turn-around times, and an attractive geographic location. 
  • Opportunity to leverage the Company’s infrastructure and cost position more effectively through attracting more non-regional clients. 
  • Structural and sustainable cost advantage supported by the ability to source skilled labor at favorable cost in Jordan, enabling Aqaba Gate Aviation to generate very attractive margins with highly competitive labor rates (below US$ 45 per hour).
  • Efficient single-site operational set-up at King Hussain International Airport in Aqaba consisting of new hangar and facility, held on long-term leases, with a total space of over 64,000 m2. 
  • Potential to expand capacity significantly through adding more shifts to Albaddad Aviation’s current one-shift operation

Facilities
The Hangar is complemented with workshops, stores, and ground side offices (built-up area of 10,000m2) and an apron area with space for 14 aircraft.

http://www.aqabagateaviation.com/