The strategy to turn Oman Air around was unveiled by Eng Said bin Hamoud al Maawali, Minister of Transport, Communications and Information Technology (MoTCIT), on Monday. The Transformation Plan which aims to make the national carrier profitable in 4-5 years includes naming a new acting CEO.
Al Maawali also announced the setting up of a new board for the civil aviation sector that brings all transport and aviation companies under it. The board will be announced on August 19.
"We have a comprehensive programme to restructure Oman Air based on a specialised study conducted by globally renowned consultant Oliver and Wyman, which will assess and suggest ways to make good the continuous operating losses and accumulation of financial debts," said Al Maawali who is also the chairman of Oman Air.
At a press conference held at the Oman Air headquarters, the minister appointed Nasser al Salmi as the new Acting CEO. Salmi replaces Abdul Aziz al Raisi.
The Transformation Plan of the national carrier will ensure financial Sustainability, better corporate governance and rightsizing of fleet and personnel.
The Board of Directors has approved the recommendations of the study by Oliver Wyman. It may be noted there was a Royal Order by His Majesty Sultan Haitham bin Tarik to assign a specialised consultant to probe the state of Oman Air.
The Oman Air Chairman said four top-notch aviation experts comprising three expatriates and an Omani will join the Oman Air board as part of the sustainability plan.
Of the seven members on the board of directors, two are representatives of the government who will look after the carrier's operations.
The minister said radical and sustainable transformation of Oman Air requires qualified experts. In this regard, many changes will be made in the current executive team of Oman Air during the coming months, with the re-formation of the members of the company's board of directors by attracting experts in the aviation sector.
Commenting on corporate governance, he said specialised committees affiliated with the Board of Directors would reformulate governance in the areas of human, financial and commercial resources.
Based on the recommendations of international experts, a decision will be taken to revamp flight schedules.
The plans involve coordination with budget airline SalamAir on domestic or international air destinations.
Al Maawali hoped that these measures would improve quality and ensure reliability of the services provided.
"The review of the transformation plan of Oman Air was announced in the interest of financial sustainability and the continuity of the company as an airline that operates according to commercial principles capable of fulfilling its current and future obligations. We have a clear indication that we are moving in the right direction. The positive results will be visible in the coming days," the minister said.
POINTS
1. Plan to make Oman Air profitable in 4-5 years
2. Nasser al Salmi named as the new Acting CEO
3. Board okays steps suggested by Oliver Wyman to turnaround Oman Air
4. His Majesty the Sultan had ordered to name a specialised consultant to probe the state of Oman Air5.
5. Oman Air board to include four aviation experts comprising three expatriates and an Omani
6. Strategy to right size personnel and revamp flight schedule
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