Silk Way AFEZCO and ExecuJet Partner to Boost Azerbaijan Aviation Hub

Strategic Partnership Between Silk Way AFEZCO and ExecuJet: Elevating Azerbaijan’s Business Aviation Industry

In October 2025, a landmark partnerships was announced between Silk Way AFEZCO and ExecuJet, signaling a pivotal moment for Azerbaijan’s aviation landscape. This collaboration is not just about the construction of new facilities; it represents the convergence of global expertise and regional ambition, aiming to transform Azerbaijan into a prominent hub for business aviation and logistics.

The joint venture leverages the strengths of two major players: Silk Way AFEZCO, a key infrastructure developer in Azerbaijan’s Alat Free Economic Zone (AFEZ), and ExecuJet, a world-renowned business aviation operator under the Luxaviation Group. Their agreement encompasses the creation of a state-of-the-art Fixed Base Operation (FBO) at the upcoming Alat International Airport and the management of Silk Way AFEZCO’s new Gulfstream G500 aircraft. As Azerbaijan pursues economic diversification and enhanced connectivity, this partnership emerges as a concrete step toward those objectives.

The Stakeholders: Who’s Involved and Why It Matters

ExecuJet and Luxaviation Group: Global Reach and Expertise

ExecuJet, headquartered in Luxembourg, operates as part of the Luxaviation Group, one of the world’s largest private aircraft operators. With a fleet exceeding 250 business jets, the group provides a comprehensive suite of services including aircraft management, charter, and FBO operations across Africa, Asia-Pacific, Europe, the Middle East, and the Americas. Since its acquisition by Luxaviation in 2015, ExecuJet has become synonymous with luxury, safety, and efficiency in business aviation.

The company’s FBOs are recognized for their high standards, with the Dubai Al Maktoum International Airport facility earning industry accolades. This reputation for excellence is a key asset being brought to Azerbaijan, where the new FBO at Alat International Airport will be modeled after ExecuJet’s Dubai operation.

ExecuJet’s entry into Azerbaijan marks its first managed Gulfstream G500 in the country, reflecting both the growing demand for premium aviation services and the strategic importance of the region.

“This is a milestone partnership for Luxaviation and ExecuJet as we expand into the Azerbaijan market. By combining Silk Way AFEZCO’s strong regional expertise with our global experience in premium FBO and aircraft management services, we are setting new benchmarks for quality, efficiency, and customer hospitality in the Caspian region.”, Patrick Hansen, CEO of Luxaviation Group

Silk Way AFEZCO and the Alat Free Economic Zone: Regional Ambition

Silk Way AFEZCO is a specialized entity within the Silk Way Group, a leading private aviation and logistics enterprise in Azerbaijan founded in 2006. The group plays a central role in the country’s cargo and logistics sector, with AFEZCO focusing on sustainable infrastructure development within the Alat Free Economic Zone.

The AFEZ, established in May 2020, is a cornerstone of Azerbaijan’s strategy to diversify its economy beyond oil and gas. Situated south of Baku and adjacent to the Baku International Sea Trade Port, the zone is strategically located at the crossroads of major international transport corridors. The government’s vision for AFEZ is to attract high-value, export-oriented manufacturing and services through incentives such as tax exemptions and unrestricted foreign ownership.

Silk Way AFEZCO’s partnership with ExecuJet aligns with this strategy, aiming to create a comprehensive aviation services hub that enhances Azerbaijan’s connectivity and competitiveness in regional and global markets.

“We are proud to partner with ExecuJet to elevate Azerbaijan’s role in global business aviation. The FBO at Alat International Airport and the joint venture at AFEZ will provide unmatched services for operators and passengers alike. Alongside the introduction of our new Gulfstream G500 under ExecuJet’s management, we are investing in the future of aviation in our country.”, Jawad Dbila, CEO of Silk Way AFEZCO

Key Components of the Partnership and Their Impact

Development of a State-of-the-Art FBO

Central to the agreement is the joint development of a new, state-of-the-art FBO at Alat International Airport. Construction is scheduled to begin at the end of 2025, with the facility expected to open in early 2027. The FBO will feature design elements inspired by ExecuJet’s award-winning Dubai facility, aiming to set new regional standards for passenger comfort, operational efficiency, and customer service.

The FBO will provide a full suite of services for business aviation customers, including VIP lounges, dedicated customs and immigration facilities, hangarage, refueling, and maintenance support. This is expected to attract international operators and business travelers, positioning Alat as a preferred stopover and destination for private aviation in Eurasia.

With the anticipated growth in Azerbaijan’s aviation sector, the new FBO is poised to play a pivotal role in supporting increased demand for premium travel and logistics solutions.

The plan to model the FBO after ExecuJet’s highly regarded Dubai facility signals an ambition to compete at the highest international level for business aviation services.

Aircraft Management and Joint Venture Initiatives

In addition to facility development, the partnership includes ExecuJet’s management of Silk Way AFEZCO’s new Gulfstream G500 aircraft. This agreement covers operational support, flight planning, maintenance oversight, and crew management, ensuring that the aircraft operates to the highest global standards.

The parties also signed a Memorandum of Understanding (MoU) to establish a joint venture within the AFEZ. The objective is to create a comprehensive aviation services hub that integrates FBO operations, aircraft management, and potentially other services such as maintenance, repair, and overhaul (MRO). This integrated approach is designed to strengthen Azerbaijan’s position as a strategic gateway connecting Europe, Asia, and the Middle East.

These initiatives are expected to create new opportunities for local employment, training, and technology transfer, contributing to the broader development goals of the AFEZ and the country at large.

Industry Context: Trends, Challenges, and Opportunities

Market Growth and Strategic Location

Azerbaijan’s aviation market has demonstrated robust growth, outpacing many global and regional benchmarks over the past decade. According to the International Air Transport Association (IATA), passenger numbers from Azerbaijan are projected to grow by 40% over the next ten years. This trend is underpinned by the country’s increasing role as a transit point between Europe and Asia, as well as government-led investments in airport and logistics infrastructure.

The Alat Free Economic Zone, with its proximity to the Baku International Sea Trade Port and major transportation corridors, is strategically positioned to capitalize on these trends. The development of world-class business aviation facilities is expected to further enhance Azerbaijan’s appeal to international investors, business travelers, and logistics operators.

The rising demand for premium and private-jets services in Azerbaijan is closely linked to growth in the energy, commerce, and tourism sectors. The partnership between Silk Way AFEZCO and ExecuJet is seen as timely, providing the infrastructure and expertise needed to meet this demand.

Challenges and Competitive Landscape

Despite the positive outlook, the regional aviation market faces several challenges. Competition from established hubs in Turkey and the United Arab Emirates is intense, with these countries offering advanced infrastructure and established reputations for business aviation.

Azerbaijan must also address the need for significant capital investment to modernize and expand its aviation infrastructure. Ensuring that new facilities meet or exceed international standards is critical for attracting discerning business aviation clients.

Additionally, the success of the partnership will depend on effective regulatory alignment, workforce development, and the ability to foster a seamless customer experience that matches or surpasses those offered by regional competitors.

Broader Significance and Future Developments

The Silk Way AFEZCO and ExecuJet partnership is more than a commercial agreement; it is a manifestation of Azerbaijan’s broader economic diversification and modernization strategy. By attracting a global leader in business aviation, the AFEZ reinforces its credibility and appeal to international investors, while supporting the government’s ambition to move beyond reliance on oil and gas.

The collaboration aligns with other major developments in the AFEZ, such as the planned Silk Way Cargo Village, which aims to establish the largest automated cargo terminal in the Caspian region by July 2026. Together, these initiatives are set to transform Azerbaijan into a premier logistics and aviation hub for Eurasia.

Looking ahead, the partnership could serve as a model for similar collaborations in other emerging markets, highlighting the value of combining local insight with global best practices in aviation and logistics.

Conclusion: A Step Forward for Azerbaijan’s Aviation Future

The partnership between Silk Way AFEZCO and ExecuJet stands as a significant milestone in Azerbaijan’s journey toward becoming a leading business aviation and logistics center. By uniting global expertise with regional ambition, the project promises to deliver state-of-the-art facilities, high-quality services, and new opportunities for growth and development.

As construction of the new FBO commences and the joint venture takes shape, the eyes of the regional aviation industry will be on Alat. The success of this initiative could have far-reaching implications, not only for Azerbaijan but for the broader Caspian region, as the country seeks to position itself as a strategic connector between East and West.

FAQ

What is the main goal of the Silk Way AFEZCO and ExecuJet partnership?
The main goal is to develop a world-class business aviation hub in Azerbaijan, including a new FBO at Alat International Airport and comprehensive aircraft management services, to enhance the country’s role in global aviation and logistics.

When will the new FBO at Alat International Airport open?
Construction is planned to start at the end of 2025, with the facility expected to open in early 2027.

Why is Azerbaijan considered a strategic location for business aviation?
Azerbaijan’s location at the crossroads of Europe and Asia, along with its government’s investment in infrastructure and economic diversification, positions it as a key transit and business hub in the region.

What challenges does the regional aviation market face?
Challenges include competition from established hubs in Turkey and the UAE, the need for significant infrastructure investment, and ensuring regulatory and service standards meet international expectations.

What is the Alat Free Economic Zone (AFEZ)?
The AFEZ is a government-backed economic zone south of Baku, designed to attract high-value manufacturing and services through incentives such as tax exemptions and unrestricted foreign ownership.

Sources: ExecuJet Official Announcement, Luxaviation Group, Alat Free Economic Zone, International Air Transport Association (IATA)