Base of Operations

Airbas Transportation based its operations in the State of Sharjah, the United Arab Emirates. The selection of UAE to be the base for Airbas operations was based on five major factors, which are:

1. The open-sky policy of UAE

2. The close proximity of UAE to the intended area of operations, and in particular Iraq

3. The availability of qualified crew and personnel for service and maintenance to the fleet components at competitive rates

4. The availability of tax-free Free Zone operations and the ease of doing business in the UAE concerning foreign ownership

5. The particular status of UAE as the main source market for the food and perishables to be sent to the US armed forces in Iraq and Afghanistan, and the main hub for the passenger traffic into and out of Iraq

A question that may be asked by persons with limited aviation knowledge could be: Why Airbas did not base its operations in the US, given that the company is an American company? The answer to that is simple enough to be summarized into three points which are:

• Airbas fleet does not qualify to operate in the US

• Airbas does not have the financial resources required to obtain a certificate in the US

• Airbas business plan aimed to capitalize on the increased demand of the warring American armed forces in the Gulf states, and never intended to operate in the US where it will be impossible to obtain a survival market share, or compete with the US giant aviation companies within the saturated US market

Certainly the lack of knowledge and expertise about the area, the people, the business environment, and the absolute ignorance about aviation and the limited operation capability of aging fleets, led the US government to suggest that Airbas was set up in UAE because Victor Bout is allegedly working there and that was a sufficient reason for the US government to commit its dreadful crime against Airbas Transportation and its owners.

The United Arab Emirates is one of the most dynamic country to do business where abundant opportunities to do business exist along with great business incentives including tax-free operations. The country makes available tremendous amount of highly-qualified and highly-competitive human resources, superb infrastructure, modern facilities, and the best known form of Arabian hospitality.  That is why Airbas selected UAE to be its base of operations. It is purely a decision that makes sense to business, but not to the government with hidden agendas.

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Last modified: 01/07/07