Gulfstream's big part in Sogerep growth

From its offices within sight of the landmark Kingdom Tower in the Saudi Arabian capital Riyadh, Sogerep Aviation runs a spares and support operation that includes, among its prime customers, the local Gulfstream fleet as well as aircraft from the Savannah manufacturer that need parts as they pass through the kingdom.

Sogerep’s Gulfstream customers include the medical services department of the Saudi Ministry of Defence and Aviation, which operates a G-IV and two G-Vs, and national oil company Saudi Aramco, operator of one of the world’s largest corporate aviation fleets.

As well as a couple of Gulfstream G-IVs, the company has a Boeing 767-200ER, a 737-800 and, added to the fleet last year, a Hawker 900XP and a trio of Embraer 170s.

“We expect this part of our activities to grow significantly as the Saudi Gulfstream fleet expands over the next few years,” said executive VP Khalid Al-Sadhan. “A recent report from consultants Frost & Sullivan described the potential for business jets in the Middle East as huge. This region contains three per cent of the world’s high-net-worth individuals – about 250,000 people. They are the potential Gulfstream users that we hope to serve.”

 He continued: “We formally represent Gulfstream for the supply of spare parts and support, and over our 30-year history we have developed close relationships with a number of other aircraft manufacturers, both fixed-wing and helicopter.”

Sogerep customers operating other fixed-wing types include Saudi Arabia’s National Commission for Wildlife Conservation and Development, which uses aircraft to support its management of the country’s wildlife reserves.

The company’s rotary-wing interests include a contract for provision of support for Sikorsky types, and the majority shareholding in the Helicopter Arabia joint venture, which provides flight crew, maintenance and instructor training.

The heart of the Sogerep spares network is its logistic support centre in Dhahran. With a staff of 20 people, more than 3,000sqm of warehouse floor space and a computerised inventory control system, the centre holds stocks valued at up to $2m at any one time. The company offers exceptionally quick turn-round for spares orders, along with component overhaul and repair and warranty services.

“We plan to expand the centre’s capacity this year, increasing the spares holding by up to 30 per cent with a view to increasing our market share in Saudi Arabia and among the other Gulf Co-operation Council countries,” said Al-Sadhan.      

The company holds spares for use by operators inside the country and also for onward supply to international customers. “The import/export part of the business is greatly facilitated by our bonded warehouse status, unique to Saudi Arabia, which allows us to move spares quickly and efficiently to international customers anywhere in the world,” explained Al-Sadhan.

In its last financial year Sogerep recorded $10m in turnover. “We were not as severely affected by the global economic downturn as aviation companies in other regions,” said Al-Sadhan. “As for the future, the Saudi government is beginning to invest again and we think the prospects for the next few years are very positive.”