Wednesday, Jul 8, 2020
International Finance
Aviation

Oman denies report of the establishment of a new airline

Earlier, it was reported that a new airline will be formed to take over Oman Air’s domestic operations

The Oman Aviation Group has denied media reports which earlier claimed that they are planning to form a new airline to take over Oman Air’s domestic operations.

According to the earlier report, Oman was considering forming a new airline to take over Oman Air’s domestic operations so that the state-owned carrier can focus on the global market where it competes with the likes of Emirates, Qatar Airways and Etihad Airways.

The Oman Aviation Group tweeted, “Oman Aviation Group denies reports regarding establishing a new airline company. The group is working on developing a promotional and investment programme called ‘Oman Link’, which aims to promote and connect regional airports in the Sultanate.”

In the last couple of years, Oman is increasingly restructuring the country’s aviation sector. The Oman Aviation Group was established last year which oversees the operations of Oman Air, Oman Aviation Services as well as the airports in Oman.

Earlier in the month of April, Oman Aviation announced that it plans to raise around $6 billion to support its plan to expand Oman’s aviation sector. The recent developments are part of Oman’s greater plan to develop other sectors in its economy to reduce the economy’s dependence on oil.

According to its chief executive Mustafa Al Hinai, Oman Aviation will raise the $6 billion in different tranches over a period of 10 years. The group has already submitted its proposal to local and domestic banks and expects to secure the first tranche by 2020.

Recently, Oman Air expanded its codeshare deal with Kenya airways. Now Oman Air’s guests will be able to travel beyond Nairobi to Dar Es Salam in Tanzania. Whereas, Kenya Airways’ guests will be able to travel beyond Muscat to Jeddah, Saudi Arabia and the Indian cities of Bangalore, Chennai, New Delhi, and Hyderabad.

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