As part of a major restructuring plan, national airline Oman Air is aiming to reduce its losses by 15% during the current fiscal year, while among to reach a break-even point by 2026.
The restructuring plan focusing four main pillars: financial sustainability, corporate governance, commercial aspects, and human capital has been prepared by international management consulting firm, Oliver Wyman.
“They (Oliver Wyman) conducted a comprehensive assessment of the airline’s financial and commercial performance. They also recommended practical measures to achieve sustainable commercial operations,” said His Excellency Saeed bin Hamoud Al Maawali, Oman’s Minister of Transport, Communications and Information Technology. “I am quite confident that the airline will reach break-even in three years,” said Maawali, who is also the chairman of Oman Air.
According to the minister, the restructuring will also be made in the current Board of Directors and Executive Management team during the coming months. “You will see many changes in the current executive team in the coming months. The aim is to reform the airline’s board and executive team with experts specialised in the aviation sector, whether local or international,” the Minister informed.
The airline has already appointed Captain Nasser Al Salmi, an aviation specialist with over 30 years of experience as acting Chief Executive Officer. Among the other recommendations include cost-cutting, increasing the quantity and quality of financial return and limiting debt and other financial commitments. According to the Minister, as part of the transformation, Oman Air will also look at discontinuing certain destinations.
