Before we get to the other questions, Mr. Burel, how did you come across the watch making industry?

I have been in the Perfume industry for the past 8 years and have reached the end of the cycle in that field. My step into the luxury watch segment had posted new challenges and has taken my experience and expertise in the perfume industry into a higher level, which is a logical career move.

Can you give us some brief background info on the Ebel Watch company?

EBEL is a Swiss luxury watch company, founded in 1911 in La Chaux de Fonds, Switzerland. In 2004, the company has been acquired by MGI GROUP, a US based group who already carry several brands such as Concord, Movado and license brands like Lacoste, Tommy Hilfiger, Coach, Hugo Boss among others.

Ebel is known for its iconic, distinct and timeless designs like the Ebel Classic, Beluga Ebel’s fine artisanship of luxury watches has made them more than just timepieces and Brasilia collections. Soon after the takeover of the MGI group, Ebel has taken a strong come back in the gent mechanical watch segment with the launch of the 1911 BTR collection using our own proprietary movement such as caliber 137, 139, 240 and 288. Ebel has also a strong background and know-how in the high jewelry watch segment and has the ability to customize unique and limited pieces especially for our very special and demanding clients in the Middle East.

I think many of your watches have e x c e l l e n t d e s i g n . Wh o d o e s y o u r design work?

In 1981, Ben Chodat joined Ebel as an exclusive timepiece designer. Chodat is a graduate of the Art School of La Chaux des Fonds and began his career in 1966 as a jewelry designer. Chodat is the creative talent behind many timepiece lines that have earned Ebel its reputation for Haute Joallerie and certain lines. Our product development team works closely with subsidiaries to fine tune designs of novelties to respond to current market trends.

Each year it seems that watches grow larger and larger. Do you see that as a fad, or do you think larger watches are here to stay?

Yes, the demand for larger watches (above 38 mm in diameter) remains strong. However, we start to see in some countries and in certain age group a slight shift on the demand for a more classic, understated and timeless design.

Who usually buys your watches?

We have strong brand recognition among the female segment up until our recent introduction of the 1911 BTR collection which gained a huge popularity among men and the watch collectors.

Do you think the passion of car lovers can be compared with that of watch enthusiasts?

Absolutely. Chances are we are talking to the same audience. The watch collectors collect watch for its design and unique technical features same applies to those who have passion for luxury cars. They say you can tell people by the car they drive and the watch they wear. For Ebel, it’s the passion for design, comfort and performance. The person who wears an Ebel has the character to be the architect of his own life and is not easily influenced by others. The design, quality and comfort remain essential.

In your opinion, why have watches become luxury goods?

Watch-making is synonymous to luxury. It has always been considered a luxury piece especially before the introduction of the quartz movement in the late 70’s. Every component in a watch is hand produced and hand assembled which involves time. People involve in watch-making are passionate about details, technical function, precision, fine and exquisite materials used.

A popular assumption is that the luxury watch industry may not survive in the days of high-end gadgets. Where do you think the industry is heading?

I disagree. As said before, the high-end gadgets will somehow compete with the demand on the watch product category. But, gadget has a very short product life cycle. A fine watch is timeless and has a patrimony that you will never get from the most advanced gadgets out there. The market will probably split into 2 categories: Fashion watches that you change every year, affordable, and the high end watches (that will move even higher, due to limited supply) for all the reasons mentioned before.

Does Dubai account for the bulk of Ebel’s sales in the region?

Our business growth in Dubai remains steadfast. It has become the window for the rest Middle East markets and the rest of the world.

Any thoughts of expanding Ebel into other markets you are not currently in?

We are planning to enter Egypt soon. All other markets in the Middle East have already been established and are doing well.

How do you market your watches? Does the marketing focus and message differ from market to market?

The focus remains the same for all markets since we are following a worldwide strategy. We have renewed our partnership with Gisele Bundchen, the famous top model, and she will remain our image. For the men watches we are entering the world of football via the most pretigious clubs, EBEL is now the official timekeeper ARSENAL, BAYERN MUNICH and Glasgow Rangers. We will soon announce some more partnership. The football is our main platform of communication worldwide, as well as in the Middle East. For the Middle East, we do focus slightly more on the novelties each year, since these markets are very demanding in terms of new products.

What is the process for determining which new model will be released, or what your next project will be? For example, there will be a new watch next year, or more than one. What is the process for determining which watch will come next?

The development of the new models at EBEL is the KEY point of our strategy. We are constantly listening to the need of the market. However, EBEL are the ARCHITECTS OF TIME. We are creating watches that will last, with a touch of timelessness. We are not a fashion brand, and it is out of question to shock our customers by changing direction now and then. Moreover, our development remains very focus on the design (perfect integration of the bracelet in the case among others...), the comfort of the watch, and the proprietary movements. Therefore, developing a new watch takes time. We are constantly improving our current collection towards these goals. But yes, there will be new watches next year....

Most watch aficionados would have a heart attack if they realized that their expensive Swiss watches were made up of parts from everywhere, we have this image of the little old watchmaker making watches like the old days. Is labour price the reason for seeking new manufacturing markets?

All our watches are being assembled in Switzerland. This is the only way to have the right in claiming “Swiss Made”. We apply the same principle as the “old watchmaker”, except that we have much modern facilities and younger generation of watch makers. EBEL has a team of watch maker assembling our movement. We have a production of 12 movement / day for the EBEL Calibers that equip our 1911 BTR Watches. Far below the actual demand, this is also explaining the rarity of our products.

How does counterfeiting impact the luxury industry and the world at large?

For the luxury watch industry, counterfeiting is an issue, but not that much at the end of the day compares to the fashion & perfume brands. The customer for a fake luxury watch is not a customer for the real one. Therefore, we are not loosing a client. Nevertheless, this is something which remains under close follow up from our side. Sales on Internet are more an issue for us. Our customers need to know that Ebel do not sale on internet. Buying a watch away from the official network can be dangerous. You are loosing the warranty, and you never know if the purchased watch is original or not. This can be much more harmful for the brand than Chinese fake watches.

On a personal note.... What watch are you wearing today, and does the watch have any special significance for you?

I am proud to wear the latest 1911 BTR 139 chronograph equipped with the EBEL Caliber 139. I love the design of the counters that is quite unique, the work on the dials, which gives some visibility of the ovement from the top and bottom and the comfort.

MIHAN is the first multi-modal international airport hub in India. What are the reasons to select Nagpur for such an ambitious project?

I believe that the multi-modal international cargo hub should be in the centre of the country. Currently, we have four major airports located at four corners in the country – Delhi in the north, Calcutta in the east, Mumbai in the west, and Chennai in the south. Most importantly, the distance between them to Nagpur is equal. I n a d d i t i o n , N a g p u r i s v e r y well-located internationally. There are 272 aircraft flying over Nagpur air space everyday. Secondly, the rail and road connectivity to Nagpur is excellent as there are five national highways starting from the city. Both its geographical location and road/rail connectivity make Nagpur an ideal place for an aviation hub in India.

Can you brief us about the Special Economic Zone and other components of the MIHAN project?

MIHAN is going to be an airport city. The project consists of an International Airport, a Special Economic Zone, a Rail Road Terminal and an International School. Besides, it will include a Residential City, a Convention Centre, hotels and service centres. MIHAN will also have its own water supply facility, sewage disposal system and cable network. In addition, it will house a Maintenance, Repair and Overhaul (MRO) unit of The Boeing Company. All these components will be integrated to facilitate the airport users, local communities, importers, exporters and various companies operating within MIHAN. The Special conomic Zone will have an IT Park, a Health City, a Captive Power Plant, and Manufacturing and Value-added Units as its main components. The Zone is created as we intend to generate both cargo and passenger traffic at the airport. The Zone will cover companies with any manufacturing or service activities. We have an agricultural base nearby, from where perishable and agro goods will be supplied to the airport and the multi-modal Special Economic Zone. MIHAN is not just a pure airport project but a multidimensional and multidisciplinary project. All in all, we are not only creating an Airport City in Nagpur, but also a new city of Nagpur.

Is there any form of private participation in this project?

MIHAN is owned by Airport Authority of India (13 per cent), Maharashtra Airport Development Company (26 per cent) and private partners (61 per cent). The private partners will be chosen through international competitive bidding.

Are you planning to bring foreign investment into this project?

Foreign investments are most welcome and there will be no restrictions. Foreign companies can bid through our international competitive bidding in every aspect, including construction, finance, insurance, freight forwarding etc.

What type of lease agreement do you have?

The period of lease is 99 years, which is much appreciated by the foreign companies.

Is there any kind of resistance from the local people in terms of the land which is being acquired for this project? How do you plan to solve this issue?

There are around 1,900 families involved. We are planning to provide them better residence. Moreover, we are trying to create employment opportunities for them. Firstly, for the companies which are launching their operations within the airport

city, we have prepared a list of employable local people and we request these companies to give preference to them. Secondly, we are paying the expenses to train the youngsters from these families to become drivers, mechanics, carpenters,

Please brief us about the latest developments in Fujairah International Airport?

The growth in cargo and passenger volumes urges us to build a new apron to accommodate more aircraft. In addition, our airport started to be congested in terms of parking space; so we are building a new parking area which has approximately 30 spaces. This project will take one-and-a-half to two years to finish. After the completion, we will be able to accommodate 50 more aircraft in addition to our current fleet of 30 aircraft.

While waiting for the completion, we are building a temporary parking area, which will be finished in two months. It will be able to accommodate 20 aircraft for both cargo and passengers. A taxiway is planned to be built, which will run parallel to the runway; new ground-handling equipment were purchased at the cost of AED 25 million; a new control tower is planned; and the passenger terminal was finished six months ago and it is in full operation currently.

Moreover, we are building a new cargo facility as well as a new catering building. These expansion plans will accommodate more flights coming to Fujairah International Airport and therefore greatly increase our cargo movements. We have a budget of AED 100 million every year for the airport development. Besides, we have a 20-year Master Plan started in 2003, which has four more stages of four years each. We are implementing all the projects in advance due to the fact that the aircraft movements and the cargo and passenger volumes are more than our expectations. For example, we started the work of the terminals at this stage instead of at the second stage as per the plan, and the work of the apron should be commenced in 2010 according to the plan, and not in this year. Additionally, we are creating a new department called Quality Control Department. It will be responsible for the quality measures and services provided to the users, including passengers, airlines, cargo forwarders and shippers, all of whom will be asked to evaluate the services provided by Fujairah International Airport staff. The Department will be responsible for safety and security issues as well.

What is the growth expected in the cargo and passenger volumes of the airport this year, compared to 2006?

In 2006, we had about 28 per cent increase in cargo movements and five per cent increase in passenger movements. Compared to 2005, both our cargo and passenger aircraft movements put together had risen by 37 per cent. This year, during the first five months, we have already achieved 17 per cent growth in cargo movements and seven per cent growth in passenger traffic, which has raised aircraft movements by 22 per cent. We are looking forward to 30 per cent growth this year. Currently, we are handling about 35,000 to 40,000 tons of cargo yearly, from which 90 per cent is outgoing cargo and the remaining 10 per cent is incoming cargo. Moreover, we cater to, on average, 30 flights per day, out of which 85 per cent is cargo and 15 per cent is passenger flights. Although the winter will be starting very soon, we are expecting more cargo movements.

What kind of cargo are you regularly handling in the airport?

We handle mostly general cargo – electronic items, cars, furniture etc – as well as perishable cargo. Sometimes, we even handle transport of animals.

Which airlines are operating passenger flights in your airport?

We cater to Indian Airlines and during the summer, we host Egypt Air as well. Besides, we have regular charter flights from Europe and Australia. Ninety per cent of our passenger movements are from charter flights. As there are new hotels opening up in Dibba, which is located near Fujairah, we are expecting contracts with some companies to start regular tour operations.

What is the status of infrastructure likefacilities for perishable goods and cargo warehouses in Fujairah airport?

The facilities, at this point of time, are not according to our expectations. We do have warehouse facilities but they are small as the airport was not expected to handle the current cargo volumes and number of aircraft. In our new cargo warehouse, we will have places for dangerous goods as well as perishable cargo. A small cargo village will also be created.

How is being a Member of Airports Council International helping you to develop the airport?

Besides the membership of Airports Council International, we are Members of The International Air Cargo Association (TIACA) and Gulf Airports Services Association (GASA). Participation in these organisations helps us to exchange information, market our airport and update our knowledge about other airports and airlines. May be this was one of the reasons that we managed to make Fujairah airport globally known and won the award for the ‘Best Airport in Cargo Handling’ organised by AirCargo News, in the 100,000-ton category for the year 2007. Five years ago, one of our objectives was to create awareness of the airport; but from last year, we had changed the

plan as people not only know about us but also discuss about our services.

Compared to other airports in the country, how do you position Fujairah International Airport in

terms of passenger as well as cargo development?

Although UAE is small in size, it is well developed compared to other countries in the region. Each airport is specialised due to its markets and therefore has its own share of the business. Even the new Jebel Ali airport will not affect the other airports in the country. All six airports in the UAE are busy. Airlines believe that the UAE is the hub for the Middle East. All big companies are locating their headquarters and distribution centres here, which also contribute to air cargo and passenger development.

Our airport is very competitive in landing and ground-handling facilities. Being the only airport in the East Coast of the United Arab Emirates, Fujairah has a very strategic location compared to other emirates. Most importantly, a road is under construction between Fujairah and Dubai, which costs approximately AED 1.25 billion. This road will reduce the distance between the two emirates from 125 to 77 kilometres, a drive of 35 minutes, which will enhance the development of East Coast, especially Fujairah. With the help of the road transportation, the cost of delivering cargo will be reduced. For passengers from other emirates, it will be easier to travel here and use our airport, since it will be connected directly to the highway. Therefore, there will be tremendous growth for Fujairah International Airport in terms of cargo as well as passengers.

What is the current status of the aviation industry in the UAE? How do you foresee the future of air ogistics business in the country?

The UAE is handling millions more passengers than its original population. This country is accounting for around 30 per cent of the total Middle East aircraft movements. This movement is expected to continuously increase in the coming years because of the development of the airports in Jebel Ali, Abu Dhabi, Sharjah and Fujairah as well as the development of Emirate Airlines, Etihad Airways and Air Arabia.

Air logistics business here will become stronger and stronger. The country plays a major role in terms of cargo movements in the Middle East. This year, two airports in the UAE have won awards organised by Air Cargo News for the best cargo airports under different categories – Dubai International Airport has won the award for the category of over 500,000 tons of cargo and Fujairah airport has won the award for the category of 100,000 tons of

cargo. Meanwhile, the cargo division of one of our national carriers – Etihad Crystal Cargo – was named as the Cargo Airline of the Year 2007, in the award function organised by Air Cargo News. In addition, there are many awards for the UAE airports and airlines provided by other organisations.

These achievements indicate how well the air cargo industry is developing in the UAE and its expertise has reinforced the cargo-handling standards in the country. Consequently, many companies are selecting the UAE as their hub to distribute their cargo. As a result, we will have more investors, companies, real estate projects and factories, which will collectively generate more cargo movements in the country.

After completing his military service, Gaona joined Aerospatiale and, until 1989, worked in the company’s design office. When he left Aerospatiale, he was Assistant Business Controller of the Design Office.

In 1989, Gaona joined Airbus as Engine Purchasing Manager, before moving to the position of Head of Industrial Purchasing, where he participated in the selection of outfitters for the Airbus Corporate Jetliner.

He was appointed Vice President Airbus Corporate Jetliner in April 1999 and in this role is responsible for all aspects of executive and private aviation sales and marketing activities.

Gaona is married with three children and in his spare time enjoys sports, and guitar music.

Airbus sees big demand for bizjets

The recent jostlings, hiccups and cancellations of orders for A380s notwithstanding, Middle East skies are still friendly for the aircraft manufacturing giant Airbus as order book maintains its upward trend for the European major. During the last three years, Airbus has dominated the large corporate jet market and, today, about a third of sales in this sector are Airbus ACJ Family aircraft. Speaking to DAFZA magazine, Airbus Vice President Executive and Private Aviation Richard Gaona gives an insight into the direction of Middle Eastern aviation industry as well as shares the secrets of success of the aircraft manufacturing giant.

Tell us a little bit about your business as it stands today?

Airbus is well known for its modern airliner family, but has only recently become more widely known for its corporate jets.

Our corporate jets compete at the top end of the market - both in size and prestige. We do this through the Airbus Corporate Jetliner (ACJ) Family, which comprises the A318 Elite, ACJ and A320 Prestige, as well as through VIP versions of our widebody A330, A340, A350 and A380, which give customers even more capacity and range.

During the last three years, Airbus has dominated the large corporate jet market and, today, about a third of sales in this sector are Airbus ACJ Family aircraft.

From where does Airbus get most of its private jet orders?

Most of our customers are private individuals or companies, but we also have many governments as clients, including the UAE.

Our Airbus ACJ Family has twice the diameter and three times the cabin volume of traditional business jets, so we offer a lot more space and comfort – as well as the ability to carry a lot more people.

Because we offer all that extra cabin space, we get a lot of interest from customers that want to trade up to something better.

Such as an individual that wants a cabin with a private bedroom and ensuite bathroom complete with shower. Or a company that needs to deliver a multi-disciplinary team to work on a distant project. Or a government that wants to transport large delegations.

The vast majority of business jets sold each year are smaller models like Bombardier Inc.'s Learjet and Cessna Aircraft Co.'s Citation. Why does a business jet maker like you concentrate more on selling single-aisle aircraft – A318, A319 and A320 ?

Learjets and Citations are much smaller aircraft, so its natural that more of them are sold. We are not in that market, but instead have concentrated on creating the best top-of-the-line corporate jets that money can buy.

Give us an estimate of total number of the region's business aviation fleet. How much do you foresee the increase in numbers in next five years?

There are almost 100 large corporate jets – aircraft at the upper end of the scale – flying in the Middle East today. That’s almost 50 per cent more than there were in the year 2000, so you can see that there has been a lot of growth.

We expect this sort of growth to continue and, with our modern Airbus corporate jetliner family,

we expect to win an important part of it.

Which of your regions has the highest growth potential?

Business aviation is driven by economic growth and, with India and China growing fastest, they are regions that are growing most rapidly today. We also see big markets in the Middle East and Europe, which is where we have won most sales to date.

In the Middle East, where is the next big growth market from your point of view ?

We expect growth throughout the Middle East.

The growth in the region’s economy has been partially reflected in our sales, but there is still a lot more potential. Most of the time, the trend is to replace an existing model by a wider more modern one – for which the Airbus ACJ Family is ideal.

And for customers that are looking for a bigger and better aircraft, we have one with the comfort that it wants, in the size that it needs.

In other words, we can offer Airbus ACJ Family aircraft or, if the customer wants to fly even more people, we offer VIP versions of our much larger, widebody airliners – such as the A330, A340, A350 or even the A380.

Do the rich and the affluent class in the Middle East consider business jets a luxurious toy or see it as a sound investment that’s paid off with a generous boost in business productivity. Your views, please?

There are a lot of real benefits that go with having your own aircraft.

For a company, one of the biggest benefits is that it buys you more time - one of our clients says that its Airbus ACJ gives him an eight-day week.

For an individual, being able to travel in comfort, privacy and security, when you want, wherever you want, is vital.

And for a government, being able to carry a large delegation – such as a minister, senior government officials and support staff – in a single aircraft can mean big savings in the logistics of a foreign visit, as well as a way to enhance security.

How is Airbus faring with its widebody business jets? You recently announced that a couple of Saudi customers have even shown interest in the A380, the "flying palace.” Please share more details with us?

We are seeing increasing demand from customers that want a VIP version of our widebody A330, A340, A350 and, yes, even of our double-deck A380.

There are also a handful of customers with VIP versions of the largest aircraft available today. Those customers will eventually want to replace them with something more modern and, when they do, we think that they will be interested by an Airbus A380 Flying Palace.

With around 550 sq m of floorspace, spread over two decks, the Airbus A380 Flying Palace will truly be the ultimate in VIP transport, with room for everything that the customer wants – meeting areas, boardrooms, dining rooms, bedrooms, bathrooms and more.

What is Airbus’s greatest strength that makes it one of the most desirable business jets?

Airbus has many strengths - but if I had to pick just one, it would be that Airbus has the most modern aircraft family, from the smallest, the A318 Elite, all the way up to the double-deck A380 Flying Palace.

Many benefits flow from this – more spacious and elegant cabins, greater reliability, easier maintenance, fewer emissions and more.

What differentiates Airbus Corporate Jetliner (ACJ) Family from its competitors?

Our Airbus A318 Elite, ACJ and A320 Prestige have two big advantages over competing top-of-the-line business jets.

First, they have the biggest cabins – they are about twice as wide and have around three times the volume of traditional corporate jets - offering the ultimate in comfort, luxury and spaciousness for about the same price.

A wider cabin with more floorspace lets you do more with your interior. It also makes moving around the aircraft easy – something that is hard to do in smaller top-of-the-line aircraft.

Secondly, the Airbus ACJ Family is newer, with the most modern designs in their class.

What have been some of the highlights and most positive developments of the past five years in your sector ?

Airbus sold 21 of its corporate jets last year – almost half as many again as we sold in 2005, and twice as many as we sold in 2004. And in each of these three years, it was the Airbus ACJ Family that sold most in the top-of-the-line sector.

Why have we become increasingly successful ? First, the benefits of the Airbus Corporate Jetliner Family are becoming more and more widely recognized by potential customers. And secondly, we are in a period of strong demand for aircraft of all types.

We have also launched a new model – the Airbus A318 Elite – the first of which will be delivered soon. The A318 Elite has the same wide cabin as the Airbus ACJ and A320 Prestige, but is shorter and more affordable.

The company operates basically into the UAE market, with customers spread across the entire Emirates. Shipments of varying volumes are received from across the Far East, Indian sub-continent, Europe and America in Dubai, some for the local market while others are exported to other parts of the world. FSL receives an assortment of cargo from Far East e.g. electronics, garments, shoes, electrical items, spare parts etc.

"We receive different kinds of cargo by both air and sea from various locations in Far East e.g. Taiwan, Singapore, Hong Kong, Malaysia and China," said Muzaffar Zakaria, Manager at FSL, adding that the company handles a sizeable quantity of cargo, ranging from food stuffs, garments, concentrated alcohol, silica ship for rolling mills, electrodes, metals, to machinery from India, while tea and garments constitute the bulk of shipments from Sri Lanka and Bangladesh respectively. It also receives a large number of used cars from Japan for the local market and as transshipment to other parts of the Middle East region, particularly Kuwait and Iraq. The major containerized and break bulk cargo from USA, Europe and West Mediterranean are aluminum ingots/castings, scaffolding, cables, can foods, spare parts, chemicals, perfumes & cosmetics, terry towels, personal effects pesticides, motors, pipes, building materials, used engines, project cargo etc, while goods such as empty tins, foodstuff, cars, scraps, machinery, project cargo are the main items that are transported by sea and air to Africa where its operations have witnessed significant increase in recent months, particularly in Eastern and Southern part of the continent. On arrival of the vessel at the port, the company liaises with the consignee with a view to ensuring that every clearing process is carried out without unnecessary delay as some of the cargo are time-definite. "Regardng delivery of goods, sometimes some of our clients take delivery directly from the ports while others prefer that we deliver the cargo at their place of choice," he added.

Subsequently, shipments for other parts of the Middle East region are moved either by sea, road or air depending on the type of cargo and consignee’s preference of mode of transport. "We have a standing third party arrangement with some reliable land transport companies who promptly take the goods to their various destinations within the region, this is facilitated by the corresponding offices of our company situated across the region," he added further. Transshipment cargo to other parts of the world i.e. Europe, America and Africa are therefore moved to the airport for onward freight to its final destination.

"FSL is an integral part of the World Cargo Alliance with a registered office in USA and all the forwarders that are registered with that body are our corresponding partners."

The company has recorded minimal activities in the movement of perishables. From time to time, it handles some quantity of flowers from U.K. and Holland for the local market. "This is done through internet, the consignee gives us the approval copy showing that he or she is the bona-fide owner of the goods, we then go and clear it for them," said Zakaria, adding further that handling of perishables would be stepped up in due course in response to increasing enquiries by potential clients.

The average monthly teus handled is in excess of a thousand, this covers local and transshipment cargo. Its warehouse is located in the Airport Free Zone, Sharjah. It plans to build its own facilities at the proposed logistics city when it becomes operational. FSL is connected globally through a proactive network of reliable and experienced overseas partners that have distinguished themselves in the freight forward business in their respective countries. This has facilitated the company’s efforts aimed at providing its numerous customers a truly global and integrated service.

The activities of the group span shipping, freight and logistics, trading, manufacturing and packaging.