Muscat: The National Airline, Oman Air, will undergo a comprehensive restructuring program, which has been approved by the Board of Directors based on a specialized study conducted due to the continuous operational losses and the accumulation of financial debts on the company.
Engineer Saeed bin Hamoud al Maawali, Minister of Transport, Communications and Information Technology, Chairman of Air, revealed the action plan at a press conference on Monday.
Highlights
* A comprehensive program to restructure Oman Air will include financial sustainability, corporate governance, commercial aspects, and human capital.
* The board of directors approved the recommendations of the study conducted by the consultant Oliver Wyman, which was based on a comprehensive assessment of the financial and commercial performance of Oman Air.
* The study presented measures to address the existing financial challenges and direct the airline towards sustainable commercial operations, by adhering to the program.
* Many changes will be made in the current executive team of Oman Air in the coming months by reconstituting the members of the board of directors by attracting experts from the aviation sector, whether local or international.
*Various destinations of Oman Air will be re-evaluated by international experts, and decisions will be taken regarding them, whether to continue or stop them.
*Coordination with SalamAir will also be considered on domestic or international air destinations.
*The comprehensive transformation program will continue for about four years.
*Oman Air's performance is expected to improve over the next year amidst great competition witnessed by the aviation sector in the region.
It may be noted there was a Royal Order by His Majesty Sultan Haitham bin Tarik to assign a specialized consultant tasked to probe the state of Oman Air.
The minister, who was hosted by Majlis A'Shura, said the consultant will submit a roadmap for working with executive management.
In his statement, he said there is a desire from the Board of Directors and the executive management as well as the Investment Authority to improve its performance.
"There is a difference in what countries choose about airlines, and in the Sultanate of Oman, the airline's revenues are separated from those of the airport and transit companies, etc. Therefore, it is necessary to wait and see the consultant’s observation in this regard, the minister said.
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