Al Futtaim Logistics unveil plan for future growth

Published: Monday, January 15, 2024

“Driven by a customer-centric and solutions-oriented approach, our 24/7 AOG operations with 300+ stations, combined with our end-to-end solutions, including storage and distribution hubs within the UAE, make us the go-to partner for aerospace companies of any size.” -Dr. Raman Kumar, Managing Director, Al-Futtaim Logistics

In the rapidly growing logistics industry in today’s interconnected digital world, Al Futtaim Logistics stands out for its fast and innovative supply chain and logistics services and solutions for different industries.

Established in the 1980s in the United Arab Emirates, Al Futtaim Logistics is today a leading provider of integrated logistics services not only in the country but the entire Middle East with its global network of strategic partners in more than 150 countries.

Just before 2023 ended, Al Futtaim Logistics expanded its services with the launch of its Aerospace Logistics Division, specifically tailored to meet the industry’s growing demand to transport parts for aircraft and spacecraft worldwide.

The Aerospace Logistics Division’s launch was held at the mega-aviation event, Dubai Airshow 2023. Prior, a soft launch was made at the MRO-AIME Middle East 2023.

Dubai, the UAE’s business hub, is the 7th largest importer of parts for aircraft and spacecraft in the world. And over the next 20 years, Al Futtaim said the Middle East is predicted to see 3.2% continued growth in the MRO services market, setting the region for soaring demand for efficient and rapid aerospace logistics.

“As part of a UAE-based conglomerate with a global network, we are uniquely positioned to deliver unmatched service quality and flexibility to meet the needs of our customers in this burgeoning sector,” said Dr. Raman Kumar, Managing Director of Al-Futtaim Logistics.

“Driven by a customer-centric and solutions-oriented approach, our 24/7 Aircraft on Ground (AOG) operations with more than 300 stations, combined with our end-to-end solutions, including storage and distribution hubs within the UAE, make us the go-to partner for aerospace companies of any size,” he continued.

Consider these facts: An aircraft that is stalled on the ground due to technical issues can cost an airline up to US$150,000 an hour in losses, which is why prompt and time-critical ground solutions are needed to ensure seamless continuity of operations.

Diverse Clientele in the Aerospace Industry

Dr. Kumar explains Al-Futtaim’s Aerospace Logistics Division caters to a diverse clientele, including Airlines, Maintenance, Repair & Overhaul (MRO) operators, Original Equipment Manufacturers (OEMs), Parts Suppliers, and Asset Leasing Companies.

The division provides a comprehensive range of solutions that includes airside deliveries at major UAE airports, multiple carrier options, Technician Onboard Charters (TOC), and 24/7 centralized aerospace operations with global coverage, covering all time zones.

“Airside delivery,” Dr. Kumar said, “is one of the big requirements for aerospace logistics,” which is why, he added, the company is moving forward in the air freight logistics field as a matter of a growth plan

The company also provides storage solutions compliant with the UAE General Civil Aviation Authority (GCAA) and ASA-100 standards.

“With 1.2 million square meters of storage and operational centers located in major air and sea hubs in the UAE, our service capabilities extend to global freight forwarding, local services, warehousing, contract logistics, and cross-border transportation. We provide fast and reliable integrated 3PL solutions to diverse industries, including the aerospace industry,” Dr. Kumar noted.

Al Futtaim Logistics is geared toward further global expansion. First to Egypt, then to Hong Kong and the rest of East Asia in the next few years. Its Aerospace Division has expertise in engine movements, parts movements, surface transportation, service cargo, routine cargo, airside deliveries, and time-critical solutions to suit urgent customer needs.

Trained associates and special security permits allow Al Futtaim’s Aerospace Logistics to execute smooth airside deliveries for AOGs. The services comprise a full range of integrated third-party solutions (3PL) to meet all the needs of aerospace MRO and other clientele.

Moreover, Al-Futtaim’s Aerospace Logistics assures time-critical air freight solutions with reliable transit times, and cost-saving opportunities integrating consolidations and multimodal transportation. Time-critical expertise extends to the provision of chartered fights, AOGs, out-of-gauge, hazardous cargo, exhibition shipments, and transport insurance.

Al-Futtaim Logistics is an authorized economic operator by the UAE Federal Customs Authority and Dubai Customs compliant with the specifications of the World Customs Organization (WCO).

In 2023, the company was recognized for its innovative approach to aerospace logistics, receiving the Emerging Aerospace Logistics Company Award at the Arabian Cargo Awards 2023.

The company is part of Al Futtaim Group, a business conglomerate established in the 1930s, which today is one of the most diversified and progressive, privately held regional businesses headquartered in Dubai, structured into different operating divisions, including automotive, financial services, real estate, retail, and health.

Al-Futtaim Group employs more than 33,000 employees across more than 20 countries in the Middle East, Asia, and Africa. It has partnerships with over 200 of the world’s most admired and innovative brands.

Growing Aerospace Industry

Since the pandemic’s lifting, the Middle East aviation industry has seen record growth in passenger traffic, thus, necessitated demand for more supplies and upkeep on aircraft and facilities it use.

In the UAE alone, the country’s four major airlines—Emirates, Etihad, flydubai and Air Arabia—have more than 480 aircraft in operation. Across the Middle East, the total fleet size tops 1,211 in 2022. By 2032, it is projected to more than double to 2,382.

With that many planes in operation in the region, the UAE has successfully positioned itself as a top 10 importer of aircraft parts with world-class logistics infrastructure. The country’s strategic location between the East and the West makes it an ideal logistics hub for the global aerospace industry.