Gallop Air’s CEO Reveals Potential Delay in Launch Amid Regulatory Challenges
The CEO of Brunei’s groundbreaking startup, Gallop Air, has hinted at a possible delay in its planned launch during the latter half of 2024. CEO Cham Chi cited the need to secure regulatory approvals, aircraft, and financing as the primary hurdles.
In a recent interview with BizBrunei, Cham disclosed that Gallop Air is currently navigating the initial stages of a comprehensive five-step approval process to obtain an air operator’s certificate (AOC) from Brunei’s Department of Civil Aviation. While optimistic about moving to the next phase by the year-end, he acknowledged the necessity of securing approval from China’s Civil Aviation Administration (CAAC). Potential conditions imposed by the CAAC, given Gallop’s startup status, could impact the launch timeline. China is expected to be Gallop’s initial destination, but Cham asserted the flexibility to switch to another country if regulatory requirements prove challenging.
“We still want to start commercial flights in Q3 next year, but we need to follow all the government regulations,” Cham emphasized. Gallop Air, positioned as Brunei’s only low-cost carrier, is 95% owned by Singapore-based GallopAir Private Limited, itself wholly owned by China’s Shaanxi Tianju Investment Group. Yang Qiang, a prominent Chinese businessman, chairs both the Shaanxi and Gallop Air boards, holding the majority ownership of Shaanxi. Yang’s enthusiasm for the aviation industry stems from previous experience, managing a helicopter business in Northwestern China and a travel business that has chartered aircraft.
In a strategic move in September 2023, Gallop Air inked a letter of intent (LOI) with COMAC for thirty aircraft, encompassing the ARJ21-700 and C919 models. Although the order is yet to be finalized, Cham outlined plans to acquire three to five aircraft annually over a seven-year period. The initial network will align with the capabilities of the ARJ21, boasting a listed range of up to 3,700 kilometers.
Gallop Air engaged in discussions with investors, the Brunei government, and local entities shortly after signing the LOI. Cham disclosed ongoing talks with banks and lessors to secure funding for the aircraft acquisitions, emphasizing the importance of garnering support and investment from the Brunei government.
Cham highlighted that the successful launch of Gallop Air will significantly enhance connectivity in and out of Brunei, fostering stronger ties between Brunei and China. Despite being one of Asia’s wealthiest and smallest nations, Brunei continues to strengthen its economic relationship with China, which stands as its largest source of direct foreign investment and a vital trading partner.