Oman Air is planning to undergo a restructuring programme to streamline the company’s losses and reduce debts. “The programme is based on a study by Oliver Wyman that assessed the airline's financial and commercial performance, and recommended measures for sustainable commercial operations,” the airline said in a statement.
The comprehensive programme will spread across span of over three to four years.
“Oman Air will restructure with the aim of improving its basic operational performance and enabling it to better meet the needs of the market,” the airline said, citing Saeed Al Mawali, Minister of Transport, Communications and Information Technology, and chairman of Oman Air.
The programme is based on the four main pillars of financial sustainability, corporate governance, commercial operations and human capital, it said.
The country is seeking to turn its flagship airline around as it seeks to boost its tourism sector and diversify its economy away from oil. The sultanate aims to increase the tourism sector’s contribution to gross domestic product to 5% by 2030 and to 10% by 2040, from 2.4% in 2021.
It also plans to attract 11.7 million tourists by 2040, up from 2.9 million in 2022. To reach these goals, Oman is looking to attract more than $51 billion in investment.
Oman Air's restructuring programme will also include changes to its current board of directors and executive management team in the coming months. However, the no further information was shared in the press release. Oman Air is also looking forward to integrate with SalamAir. SalamAir currently has a fleet of fourteen leased Airbus A320ceo and A321neo family aircraft.