The Aviation industry has never offered so many opportunities - and greater competition - for ambitious new market entrants:
● Middle Eastern Aviation is projected to reach a Compound Annual Growth Rate (CAGR) of 4.4% from 2025 to 2033. Growth will be led by investments in new airports, infrastructure expansion, rising consumer demand and Government diversification initiatives and incentives
● Regional airlines are expected to enjoy the world's highest net profit margin in 2025 at 8.7%, with total net profits predicted to reach $6.2 billion, aiding national and global expansion plans
● The Middle Eastern MRO market is also growing steadily with a CAGR of 2.8%, driven by larger fleets and demand for advanced maintenance services
● The region’s airlines recorded a strong passenger demand growth of around 3.3% year-on-year in early 2025. Middle Eastern passenger traffic is expected to at least double by 2030, reaching around 300 million passengers annually
● Airports in the Middle East and Asia-Pacific are expected to receive $240 billion in construction and modernization investment leading up to 2035.
● Current regional Government investment spans $50 billion in Saudi Arabia for the King Salman International Airport and other regional airports including the New Abha and Red Sea International Airports. Saudi Arabia’s total airport infrastructure projects are valued at over $7.5 billion, and major investments are in progress in the UAE, Bahrain, Kuwait and Iraq.
Multiple market entrants from the Middle Eastern Aviation sector are striving to compete with scores of new and established companies. Aviation start-ups and scale-ups must simultaneously align with Government strategies to diversify the region’s offerings on the world stage, and differentiate their businesses through superior service, network connectivity and product innovation, rather than relying solely on price competition.
The Business Blueprint for Success covers everything a new Aviation business will need to set up for success in the Middle East in 2025 and 2026, including:
● Obtaining Funding - Securing Multi-Year Investment
● Digitalization - Which Technologies are Really Worth the Investment
● Workforce Building - Hiring and Planning for Staffing Needs
● Talent Development - The Top Skills Required for a Winning Team.
VHR’s Aviation recruitment specialists reveal proven tactics and advice from established airlines and MROs that can aid the sector’s newest ventures on the road to success.
Obtaining Funding - Securing Multi-Year Capital Investment
Any new Middle Eastern Aviation business must secure significant investment well ahead of launch, not just to get off the ground, but to directly address the costly challenges already facing the sector:
● Fuel Bills - The International Air Transport Association forecasts 2025’s global airline fuel bill at $236 billion, representing one quarter of all operating costs for airlines worldwide. Nearly every commercial carrier will be exposed to fluctuations in jet fuel prices this year, racking up ticket prices and reducing already minimal profits per passenger. Established airlines are grappling to optimise fuel consumption and minimise both fuel-wasting practices and unnecessary weight.
● Supply Chain Pressures - Persistent shortages of engines and spare parts are delaying deliveries and grounding aircraft across the industry. Shortages are already impacting network flexibility, creating inefficiencies, increasing costs and restricting expansion opportunities. 2025 aircraft deliveries will fall 20-30% below earlier expectations and well below the 2018 delivery peak. The backlog of unfilled aircraft orders has reached a record 17,000 planes, which at current delivery rates will take 14 years to clear. Luxury airlines with more complex design and manufacturing needs are particularly impacted, frequently having aircraft otherwise ready but waiting for seats and vital parts to begin flying.
● Maintenance Costs - With the average age of the global aircraft fleet approaching 15 years - a significant increase compared to 13.6 years in 2020 - maintenance costs for older fleets are piling on the pressure. The UAE, Saudi Arabia and Qatar are each suffering backlogs exceeding 100% of their current fleets. New business success will require synchronising capacity growth with actual (rather than predicted) market demand to avoid overcapacity and depressed yields.
Danny Brooks MBE, Founder and CEO of VHR:
“Launching and scaling an airline requires significant upfront capital to purchase and deliver fleet, infrastructure, operations and satisfactory customer service. As many private investors are unable to meet the scale of funding required, state investment helps Aviation businesses cross initial financial barriers to begin trading and scale for the future.”
Government investment brings a wealth of additional benefits to help new businesses thrive in the sector:
● National Prestige & Brand Identity - Carriers that quickly build a reputation as supporters of tourism, trade and global connectivity are entwining their brands with the nation’s prosperity in the minds of customers and investors
● Enabling Stability - Any business with close alignment to Government interest receives greater protection to withstand market shocks like fuel price spikes and unexpected geopolitical events
● Rapid Growth - Government backing empowers faster upscaling to grow fleets and add international routes, and supports faster innovation to meet major ambitions
● Navigating Regulatory Frameworks - Riyadh Air is preparing to launch operations in later 2025; aims to connect to 100+ global destinations by 2030 have been underpinned by Government support, and the airline has over 100 Airbus and Boeing aircraft on order. CEO Tony Douglas has spoken publicly on how the airline’s launch and rapid progress toward regulatory certification have been enabled by national Government support
● Fostering Collaboration - Public investment is often aligned to partnerships in training and technologies including Sustainable Aviation Fuel, helping the whole Aviation industry work together for progress.
Government investment requires the preparation of detailed business cases that demonstrate how a potential partnership would deliver on state goals and act in national interests. Proposals that address regional infrastructure and service gaps, and support economic growth through job creation, tourism and sustainability are particularly attractive investment propositions for Middle Eastern Governments. Market entrants will usually need to participate in public tenders or respond to open Requests for Proposals with detailed plans and financial projections. Industry bodies can support Government bids with legal advice and proposal structuring.
Public-Private Partnerships (PPPs) are another viable and sustainable route for new market entrants. Most civil aviation authorities, transport ministries and economic trade development agencies promote PPPs in Aviation infrastructure and services. Many new entrants have also collaborated with well-established industry leaders like Airbus and Boeing to share knowledge, innovate new technologies and build joint ventures.
Any new business must carefully manage capital allocation and cost bases, but for the capital-intensive and highly competitive Aviation sector, this is particularly critical. Industry leaders believe that carriers must first demonstrate financial stability with their initial investment to encourage future sustainable backing from a wider range of sources later down the line. Agile responses to economic setbacks, including restructuring and making tough leadership decisions, are essential to protect both current business continuity and future investment prospects.
Oman Air CEO Con Korfiatis: “During a period of financial difficulty, our losses had grown to a level where we needed to do immediate surgery to achieve financial security. The end game is to shrink, fix the foundations, and then go back to a growth agenda. We need to justify our existence. We have to earn the right to continue to be the flag carrier.”
Digitalisation - Which Technologies are Really Worth the Investment?
A digital-first strategy is vital to ensure any new Aviation business begins operating as effectively and efficiently as possible. Investment in technologies that support infrastructure and enhance the passenger experience are necessary to become and remain competitive. The industry is making leaps and bounds in artificial intelligence and other emerging technologies, but the foundations must be in place before investing in costly new innovation projects.
The Technologies That New Aviation Businesses Should Invest In
● Hydrogen-Powered Aircraft - A more cost-effective solution to fulfil sustainability goals where expensive Sustainable Aviation Fuel isn’t yet a viable solution. Due to its high energy density by weight that enables longer ranges, hydrogen shows promise for powering the long-haul flights that will meet the region’s long-distance travel demands. Using hydrogen as an energy source to generate electricity for propulsion, this technology provides a pathway to the region’s commitment to the IATA and ICAO 2050 zero-emission flights target. Several Middle Eastern innovation hubs are already conducting research and developing prototypes in this area.
● Advanced Air Mobility - The UAE Government has developed a specific regulatory framework to accelerate testing, development and deployment of new AAM technologies. Dubai is actively investing in electric vertical take-off and landing (eVTOL) air taxis through private company partnerships. AAM technologies will see significant investment in the Middle East in the coming years, to solve the region’s present traffic congestion challenges, and balance skyrocketing travel demand with the need for environmentally friendly transport.
● AI in Airport Operations - AI is highly valuable for the automation of repetitive and costly tasks: King Khalid International Airport in Riyadh is focusing on user-centric design to implement biometric security gates and automated check-in counters for more efficient passenger processing and immigration.
Real-time analysis can also improve the flying experience. Investing in AI for airport operations can reduce boarding delays by assigning gates more efficiently, with shorter waiting times for security processing and baggage handling improving passenger satisfaction and customer retention.
● Predictive Maintenance - Emirates are working with multiple industry partners to build digital twins. Data models are based on specific aircraft parts to 3D-print replacement parts that are no longer manufactured en masse, significantly reducing the time needed to qualify and certify parts during the unprecedented shortage.
● Cybersecurity - The Aviation industry has seen a year-on-year rise in cyber attacks - with the Middle East at particular risk due to geopolitical tensions and rapid adoption of new technologies as the sector booms - which can disrupt navigation and critical flight systems. Incident Response and Recovery systems are at front of mind to ensure business continuity in the event of an attack. New and established MROs alike are investing in firewalls, intrusion detection and prevention systems (IDPS), anti-virus software and encryption to limit access to data and protect key infrastructure.
Technologies to Avoid in Early Stages of Investment
● Overreliance on Sustainable Aviation Fuel - Although SAF will be vital to the region’s environmental targets and the industry’s sustainable future, current costs are astronomical compared with traditional jet fuels. SAF investment will deliver better returns when used as a secondary decarbonization strategy, supporting rather than replacing the development of true zero-emission technologies and innovative propulsion systems.
● Legacy Fleet Upgrades - Minor incremental upgrades of conventional aircraft do not deliver significant enough efficiency gains. Cutting immediate costs by simply replacing parts of older models will cause dependency on a smaller range of suppliers as technologies go out of date and parts are harder to source.
Ade Makinde, Principal Engineer, Additive Technologies at GE Global Research:
“Digital twin technology is rapidly speeding up the time that parts could be re-engineered or newly created using 3D printing. With today’s technology, the process for designing a new part can take years. Unique digital solutions under development could reduce that timeframe to two weeks.”
The sector is investing greater efforts into strategic long-term partnerships, and 70% of Aerospace suppliers now feel well-prepared for AI-driven production and operations improvements. Aviation leaders including Airbus, Boeing and Honeywell are heavily investing in AI and automation in predictive maintenance and flight route optimization, reducing waste and increasing productivity.
Talent Development - Setting Up for Future Business Growth
Continued investment in recruiting, developing and retaining skilled professionals is a core factor in launching a new carrier or MRO as Middle Eastern Aviation evolves in both scale and complexity.
The number of permanent and contract staff a new business will need in its first ten years will vary significantly based on its business model, whether full-service, low-cost, charter or cargo. Routes, fleet size and age and scaling ambitions will all influence the volume and type of skills needed to launch a successful Aviation business in the Middle East.
Established airlines such as Emirates and Qatar Airways Group employ over 121,000 and 45,000 staff respectively. New full service airlines will grow more slowly, with the first two years usually requiring 150–400 permanent staff including pilots, cabin crew, engineers, operations and sales, and up to 100 temporary staff for seasonal and specialist positions. Years three to 10 for a new regional carrier will see rapid upscaling of pilots, maintenance, ground and management staff of up to 3,500 permanent employees and up to 700 contract workers for ground operations and essential projects.
Danny Brooks MBE, Founder and CEO of VHR:
“The sector’s Covid-induced two-year training gap reduced the available labour pool by at least 7%, and Aviation is still grappling to balance demand for skills with actual supply. Recruitment plans are being thwarted by competition from alternative industries as skilled workers leave Aviation for Tech, Engineering, Renewables and other sectors with greater job stability outside of boom/bust cycles. Tighter margins have driven down hourly rates for unskilled and semi-skilled workers at or close to the minimum wage, further shrinking talent pools. New market entrants will struggle to compete for skills due to lower brand power and less available capital.”
Top 5 Team Skills Required by Every New Aviation Business
● Compliance - Understanding of nuanced international regulation to promote safety and sustainability, avoid fines and brand damage, and maximize procurement and operations budgets
● Advanced Data Analytics - Leveraging vast data sets and new digital platforms to optimize flight operations and improve maintenance schedules
● Language Skills - Communicating fluently to ensure passenger safety and premium customer experiences across nationalities to serve global and local markets
● Resilience and Adaptability - Flexibility to operate effectively and efficiently in fast-changing environments, and ensure safety during emergencies
● Management & Leadership - Training experience to upskill workforces in line with technological advancements and evolving industry demands.
Top 5 In-Demand Aviation Roles
● Pilots - Arabian Gulf Business Insight reports a need for 28,000 new commercial pilots by 2032 to meet growing travel demand, especially those with specific type ratings (A320, B737, business jets)
● B1/B2 Licensed Engineers and Airworthiness Specialists - Maintenance engineers certified for complex systems and new aircraft technologies
● Operations Controllers and Flight Dispatchers - Safely and efficiently transporting aircraft and co-ordinating local and global journeys
● Cabin Crew - Boeing predicts the region will need more than 90,000 cabin crew by 2040 to staff growing fleets
● Non-Destructive Testing (NDT) Technicians - Expertise in advanced testing and maintenance techniques to guarantee safety at all times.
Aziz Koleilat, President and CEO of METCIS at GE Aerospace:
“The Middle East’s Aviation story is one of incredible transformation. However, long-term success hinges on embracing more efficient practices and fostering technological innovation.
“The future will be shaped by the effective use of digital solutions and the cultivation of a skilled workforce. Investing in STEM training programs is crucial to build the expertise to implement these technologies and drive innovation. Partnerships with universities and technical colleges will deliver a pipeline of skilled Aviation professionals.”
Talent Attraction - Hiring the Right Team for Success from Day One to Year 10
Before crafting dedicated upskilling and development plans, Aviation businesses must put the right hiring strategy in place.
Danny Brooks MBE, Founder and CEO of VHR:
“Businesses that rely on the technical skills of their engineers and technicians can’t afford to settle for second best. Using an external service provider that specialises in the Aviation industry can relieve pressure on your core team whilst you scale up faster. The right recruitment partner goes behind staffing to optimise hiring budgets and process efficiencies. From quality control and screening to risk assessment and new hire care, every element of hiring can be combined into one complete suite and managed effectively by one key workforce partner.”
Resilience, scale and long-term success depend on the right partnerships. VHR’s recruitment specialists have spent decades recruiting technical and executive staff for both the global and Middle Eastern Aviation sectors.
Delivering highly skilled professionals to some of the world’s leading airlines, MROs and OEMs, VHR provides contract and permanent recruitment services that help new Aviation businesses meet the sector’s high standards and get set up for competitive advantage.
