Transformation plan helps Oman Air cut losses by 25% in 2023
Published: 08:02 AM,Feb 14,2024 | EDITED : 08:02 PM,Feb 14,2024
Airline to have a new CEO with more than 30 years of experience
Muscat: The Minister of Transport and Communications and Information Technology (MTCIT) is discussing the transformation plan of the national airline, Oman Air.
Highlights
A strong Oman Air is needed if the aviation sector of the Sultanate has to be stable. The airline's performance has improved and is moving in the right direction.
Financial performance improved in 2023 compared to the previous year.
The airline is expected to be financially stable and sustainable by 2026.
There has been a reduction of the company’s losses with an increase in revenues and the improvement of its financial performance without resorting to borrowing from commercial banks or the government year 2023.
The company is still making losses, but less than before.
The appointment of a new CEO with more than 30 years of experience in the field of international aviation and comprehensive corporate transformation programs will soon be announced.
Work will be carried out in parallel to conduct a comprehensive evaluation of the remaining executive and administrative positions.
A decision has been taken to “determine the appropriate size” of the company’s fleet and to review the network of destinations in the commercial hub with the company’s transformation plan.
These measures are part of a broader organizational restructuring process that will work to evaluate current capabilities realign them with the requirements of the market, and prepare qualified cadres to lead the transformation.
The strategic changes in Oman Air’s network of destinations and the company’s fleet will inevitably lead to a surplus in the fleet, which requires taking decisions regarding them, including streamlining some of the executive and administrative aspects and issuing a new organizational structure that suits the needs of the stage in all aspects.
Reports about the dismissal of a large number of Oman Air employees are not true. Only about 20 people had their situations affected, which was part of the course correction.
Of 56 destinations, only four of them made profits. Plans are to make at least 60% of them profitable.
Pilot salaries are determined by the global market trends and the salaries of Oman Air pilots are no different from other airline companies.
It may be noted that Eng. Saeed Al Mawali, Minister of Transport, Communications and Information Technology, and Chairman of Oman Air, had announced a comprehensive program to restructure the airline.
The program, which will be implemented over the next 3-4 years, aims to address ongoing losses and the accumulation of debt and includes four main pillars: financial sustainability, corporate governance, commercial aspects, and human capital.
The program is based on the recommendations of international management consulting firm, Oliver Wyman, who conducted a thorough assessment of the airline’s financial and commercial performance and presented practical measures to achieve sustainable commercial operations.
Highlights
A strong Oman Air is needed if the aviation sector of the Sultanate has to be stable. The airline's performance has improved and is moving in the right direction.
Financial performance improved in 2023 compared to the previous year.
The airline is expected to be financially stable and sustainable by 2026.
There has been a reduction of the company’s losses with an increase in revenues and the improvement of its financial performance without resorting to borrowing from commercial banks or the government year 2023.
The company is still making losses, but less than before.
The appointment of a new CEO with more than 30 years of experience in the field of international aviation and comprehensive corporate transformation programs will soon be announced.
Work will be carried out in parallel to conduct a comprehensive evaluation of the remaining executive and administrative positions.
A decision has been taken to “determine the appropriate size” of the company’s fleet and to review the network of destinations in the commercial hub with the company’s transformation plan.
These measures are part of a broader organizational restructuring process that will work to evaluate current capabilities realign them with the requirements of the market, and prepare qualified cadres to lead the transformation.
The strategic changes in Oman Air’s network of destinations and the company’s fleet will inevitably lead to a surplus in the fleet, which requires taking decisions regarding them, including streamlining some of the executive and administrative aspects and issuing a new organizational structure that suits the needs of the stage in all aspects.
Reports about the dismissal of a large number of Oman Air employees are not true. Only about 20 people had their situations affected, which was part of the course correction.
Of 56 destinations, only four of them made profits. Plans are to make at least 60% of them profitable.
Pilot salaries are determined by the global market trends and the salaries of Oman Air pilots are no different from other airline companies.
It may be noted that Eng. Saeed Al Mawali, Minister of Transport, Communications and Information Technology, and Chairman of Oman Air, had announced a comprehensive program to restructure the airline.
The program, which will be implemented over the next 3-4 years, aims to address ongoing losses and the accumulation of debt and includes four main pillars: financial sustainability, corporate governance, commercial aspects, and human capital.
The program is based on the recommendations of international management consulting firm, Oliver Wyman, who conducted a thorough assessment of the airline’s financial and commercial performance and presented practical measures to achieve sustainable commercial operations.