Demand drops in aviation sector

However, with troubled times for the aviation industry, the plan has been put on hold, along with the scheme to increase operations to India.

“We have no plans to extend, unless entitlements are further increased for specific domestic airports,” Paul Gregorowitsch, chief executive officer (CEO) of Oman Air told the Times of Oman when asked about expanding operations to India.

He stated that there was “no appetite to invest in foreign airlines,” implying that there was no plan to invest in Air India.

Prudent expansion

The aviation industry this year has suffered a drastic drop in demand as the economic crisis has led to European airlines, such as Alitalia, to file for bankruptcy despite the backing of Etihad Airways. The Gulf carriers have had an even worse period, with low oil prices leading to lack of travel demand in the region, and a freeze in expansion plans and restructuring.

Oman Air has however, pursued a more prudent expansion policy and therefore has not suffered from overcapacity or drawbacks of bad investment.

“Oman Air is absolutely right not to invest in other carriers. Oman Air’s CEO has evidently seen the inherent risks and pitfalls in investing in poorer airlines,” Saj Ahmed, chief analyst at Strategic Aero Research, said.