Oman Air set for operational overhaul as losses mount

Oman News Agency

State-owned Oman Air will undergo a restructuring process to reduce ongoing losses and debt accumulation.

The plan includes four main pillars: financial sustainability, corporate governance, commercial aspects and human capital.

The airline’s board has approved the restructuring programme, state-run Oman News Agency reported, citing Said Hamoud Al Ma’awali, minister of transport, communications and information technology and chairman of Oman Air.

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Specialised committees have been launched to look at human, financial and commercial resources.

The carrier’s network is also being re-evaluated and decisions will be made on whether to continue certain destinations, Al Ma’awali said.

Oman Air reduced its net loss by 35 percent in 2022 compared to 2020 figures, while revenues increased 128 percent, according to its latest financial statement in May.

The airline has forecast that total revenues will be up 236 percent this year compared to 2020, which could reduce its net loss by a further 56 percent.

The board approved the recommendations of international management consulting firm, Oliver Wyman, which conducted a “comprehensive assessment” of the airline’s financial and commercial performance, presenting practical measures to achieve sustainable commercial operations, Al Ma’awali said.

He added that Oman Air will restructure to improve its basic operational performance and enable it to meet the market’s needs better.

The chairman pointed out that changes in the current board of directors and executive management team will be made in the coming months, with the onboarding of highly qualified local or international experts.