The government has announced the establishment of the Oman Aviation Group (OAG) which will focus on the development of airport cities and free zones. The group has been established under the chairmanship of Dr Ahmed al Futaisi, Minister of Transport and Communications. A statement from the Ministry of Transport and Communications said the OAG will be a public sector holding company that will include the Oman Air, Oman Aviation Services, (under incorporation), Oman Navigation, Shipping and Oman Meteorology. The group’s board of directors, at its first meeting, approved the general strategy and work plan.
In a statement, Dr Al Futaisi said the group has been established with the aim of developing and managing government investment in infrastructure/ services in the civil aviation sector, and developing financial/ economic planning for the group’s subsidiaries. OAG will develop these investments around airports by establishing partnerships with the private sector. The projects are aimed at establishing free zones near airports that will boost foreign investment, revenues and trade exchanges among others. He said the Oman Aviation Services will be established to provide aviation services, improve productivity and efficiency in ground handling, catering, freight and hospitality infrastructure, and enhance partnership opportunities in aviation services.
The group is working on a strategy to separate the operations of Air Traffic Control and Oman Meteorology from the Public Authority for Civil Aviation (PACA). A new subsidiary will be formed. OAG will be working with PACA to open new horizons through air transport agreements as well as considering “activating the freedoms of air transport” to enable the national carrier and other airlines to operate in a more open environment. Al Futaisi said the OAG aims to increase the contribution of the aviation sector directly to the GDP and indirectly through tourism and logistics sectors.
It will also help improve the international ratings of Oman Air and Oman Airport Management Company (OAMC).
The group aims to increase the number of passengers at the Sultanate’s airports from 16 million (2017) to 39 million by 2030. The aviation sector aims to focus on the efforts of Oman Air towards attracting foreign tourists and helping Oman emerge as a world-class tourist destination by developing the main airports. The sector will also improve the maritime air link of goods from the Sultanate’s ports. Advanced aviation services will be enabled to meet customer services and facilitate the movement of goods more effectively through the construction of infrastructure in the civil aviation sector of logistics services in the Sultanate. Plans are on to restructure Oman Air through a company’s strategic transformation programme, including revamping its business model.
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