With the impact of the coronavirus deteriorating in the Middle East, IATA has renewed its call for government intervention for the aviation industry.

The association predicts that the aviation industry in the Middle East and North African (MENA) region could lose revenue of around $24 billion due to the coronavirus pandemic. The figure is $5 billion higher than the revenue loss predicted by IATA during the start of this month.

IATA also revealed that Oman’s aviation industry could see 4.3 million fewer passengers in 2020. This could inversely result in 51,500 job losses in the sultanate’s aviation industry.

For the whole region, job losses in aviation and related industries could grow to 1.2 million. Around 400,000 of the cuts will be in the UAE’s aviation sector alone.

Muhammad al Bakri, IATA’s regional vice-president for Africa and the Middle East told the media, “Airlines in the Middle East continue to be battered by the impact of COVID-19. Passenger traffic has all but ground to a halt and revenue streams have evaporated. No amount of cost-cutting will save airlines from a liquidity crisis. The collapse of air transport will have devastating effects on countries’ economies and jobs. And in a region where aviation is a key pillar of many nations’ economies the effect will be much worse. Direct financial support is essential to maintain jobs and ensure airlines can remain viable businesses.”

The post IATA: Oman’s airlines to suffer revenue losses of $724 mn in 2020 appeared first on International Finance.

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.

The post Oman denies report of the establishment of a new airline appeared first on International Finance.

Reportedly, the Oman Aviation Group has issued a proposal for a feasibility study with regard to the establishment of a new airline.

The new airline, which will take over Oman Air’s domestic operations, will help the state-owned carrier focus on the international market where it competes with the likes of Emirates, Qatar Airways and Etihad Airways.

Even though the new airline would have its own independent management, it could operate in partnership with Oman Air.

Currently, Oman Air flies to four destinations within the country. The airline uses 166-seat Boeing 737 jets and 71-seat Embraer E175 aircraft on domestic and regional flights.

But the cost of operating these aircraft domestically is too high. Therefore, the new airline would use regional jets to operate within Oman.

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 2017, the company launched Salam Air, a budget carrier owned by Oman’s government pension fund and the Muscat municipality.

Recently, Oman Air announced that it will start flying to five new destinations in Europe. According to the codeshare agreement signed with Germany’s Lufthansa, Oman Air will operate direct flights to Munich and Frankfurt and connecting flights to Amsterdam, Dublin, Helsinki, Oslo, and Warsaw.

Oman Air now serves 24 European destinations, with non-stop flights to 10 cities and partnerships connecting guests with 14 additional destinations on the continent.

The post New Omani airline to take over Oman Air’s domestic ops appeared first on International Finance.