Mixed results and business diversification for Oman Air

The recent annual results by Oman Air were a mixed bag with passengers numbers and sales revenue on an upward trend. However, overall profits slumped even further in 2013.

Oman Air’s chairman, HE Darwish Bin Ismail Al Balushi announcing the results said that the airline had increased its capacity to 14.9 billion available seat kilometres in 2013, enabling it to carry, with a total of 4,994,729, nearly 13% more passengers than in 2012. These results, together with the airline are other areas of operations, contributed to an increase in Oman Air’s total revenues in 2013 of 10%, compared to 2012. A total of RO 381,709,000.

Darwish Bin Ismail Al Balushi further added: “Although our loss increased in 2013 by 16% to RO 113.3435 million, the company’s direct and indirect contribution to the Omani economy over the same period was, according to commissioned studies, as much as OMR 400 million. The loss was as a result of our continued investment in new aircraft. The arrival later in 2014 of the first of 20 new aircraft we currently have on order will signal the start of a major new phase in Oman Air’s growth and an increase in our capacity.”

The new Embraer E175 and Boeing B737 aircraft added in 2012 have increased flexibility and capacity of Oman Air’s fleet.

Further, Oman Air is currently engaged in a range of diverse activities, including scheduled airline services, air charter services, ground handling, cargo handling, aircraft catering services, hospitality and duty free business. His Excellency further informed that these businesses should be spun off into separate legal entities which will enhance efficiencies and effectiveness.

The plan will be implemented in a gradual and sustainable manner, and will begin with ground handling and cargo handling businesses. Final decisions and related timescales will be announced following consultations with the Government of Oman.