Oman Air sets course for overhaul, financial recovery
Oman Air is steering towards a promising future, marked by a significant reduction in losses and a boost in revenue growth, without relying on commercial bank loans or government aid in 2024.
H E Said bin Hamood al Mawali, Minister of Transport, Communications and Information Technology and Chairman of Oman Air's Board of Directors, unveiled this positive shift at the second media gathering dedicated to discussing the airline's transformation plan on Wednesday.
The airline's financial turnaround, with losses reduced by 25%, is credited to a series of strategic measures and decisions, aligned with the transformation plan introduced in August 2023.
These steps were designed to tackle the airline's long-standing issues of accumulated debt and operational losses. According to H E Mawali, the plan includes optimising the fleet size and revising the destination network to better suit the airline's strategic goals.
A key announcement on the appointment of a new CEO will be made soon, the minister informed, signalling a major organisational restructuring to meet current market demands and the airline's needs. “This restructur
The airline’s financial turnaround, with losses reduced by 25%, is credited to a series of strategic measures and decisions, aligned with the transformation plan introduced in August 2023
H E SAID BIN HAMOOD AL MAWALI
ing aims to establish financial stability by 2026, setting the stage for future expansion.”
H E Mawali highlighted adjustments in the airline's network, which involves discontinuing flights to Islamabad, Lahore, Colombo and Chittagong, while introducing a new route to Sialkot.
Furthermore, the airline is set to operate seasonal flights to Zurich and Mali during winter, and to Trabzon in summer, moving towards profitability.
“We had 56 destinations, only four of which made profits. So, now we are working to reach a stage where at least 60% of these are profitable.”
Addressing layoffs, the minister clarified that only 20 employees were let go recently, countering rumours of major job cuts.
In a strategic move to boost its service offerings, Oman Air aims to sign a deal with an international company to bring in 30,000 passengers directly in 2024.
The strategic overhaul extends to Oman Air's fleet, necessitating decisions on surplus aircraft and the streamlining of executive and administrative functions, H E Mawali added. “A new organisational structure is underway, tailored to the current phase's comprehensive needs, promising a rejuvenated and financially sustainable Oman Air.”