Inside the new Salalah Airport

Oman Air wins two world travel awards in a row

Muscat: Oman Air, the national carrier of the Sultanate of Oman, has won two awards at the World Travel Awards Middle East 2015. 

Oman Air emerged on top in the 'Middle East's Leading Airline - Business Class' and 'Middle East's Leading Airline - Economy Class' categories at a glittering ceremony which held on May 5 at the Four Seasons Resort in Dubai, United Arab Emirates (UAE).

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This is for the second year in a row that Oman Air has taken the titles, which are voted for by travel and tourism professionals worldwide.

Abdulrahman Al Busaidy, the chief operating officer of Oman Air, said, "It is particularly satisfying to receive these awards now. We are just a few months into our ambitious programme of fleet and network expansion. This will see us increase the size of our fleet from 30 aircraft at the start of the programme, to 50 by 2018, and to 70 by 2020. Each of the new aircraft features newly-designed cabins, spacious and comfortable new Business Class and Economy Class seats and the very latest in-flight entertainment technology."

On receiving the awards, Mohammed Al Shikely, general manager, marketing of Oman Air, said, "I am honoured to accept both these awards, on behalf of everyone at Oman Air. I am delighted that people throughout the global travel industry have been so impressed by our Business Class and Economy Class services, and I would like to thank them for voting for Oman Air."

"Oman Air has added a number of exciting new destinations to our network, increased frequencies on some of our established routes and improved connections at Muscat International Airport. As a result, many thousands more people will have the opportunity to experience Oman Air's outstanding Business Class and Economy Class services," he said.

Graham E Cooke, president and founder of the World Travel Awards, added, "Many congratulations to Oman Air! These World Travel Award accolades recognise the commitment to excellence and continuing endeavours to improve products and services which Oman Air has demonstrated in the last twelve months."

Oman Air's new long haul business class cabin offers 24 seats, each of which converts to a 77-inch/196cm long fully lie-flat bed.

The seats are fitted in a 2-2-2 configuration and, thanks to an ingenious cabin layout, provide direct aisle access for every passenger.

Oman Air launches codeshare with KLM

Oman Air is has launched a new codeshare agreement with KLM Royal Dutch Airlines. The agreement came into effect on Wednesday 15th April 2015 and enables Oman Air’s customers to book onto flights operated by KLM between Muscat and Amsterdam.                 

KLM operates five flights per week between the two cities and utilises Airbus A330 wide-body aircraft on the route.

Oman Air’s Chief Executive Officer, Paul Gregorowitsch, said:

“We are delighted to announce this new codeshare partnership with KLM Royal Dutch Airlines. It will increase the number of destinations we offer in Europe to seven and represents an expansion of the choice we offer our customers.

“KLM is a highly respected carrier, whose ethos of quality and service is similar to that of Oman Air. Our customers can therefore be confident that the high standards they have come to expect of Oman Air will be reflected on this new service.

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“We are looking forward to working closely with KLM and we anticipate strong demand.”

Amsterdam is the capital of the Netherlands and one of the top financial centers in Europe. It is also a major attraction for leisure travellers and welcomes more than 4.5 million international visitors every year. The Oman Air–KLM codeshare flights will be flying to Amsterdam Airport Schiphol, which is the main international airport of Netherlands and is the fifth largest airport in Europe, in terms of passengers.

The announcement of the codeshare partnership with KLM follows the launch by Oman Air in recent months of new services to Manila, Jakarta, Singapore and Goa. This network growth is a key part of Oman Air’s current ambitious expansion programme. The programme will see Oman Air not only increase its network, but also increase frequencies on many established routes. In parallel, Oman Air is enlarging its fleet and will operate 50 aircraft by 2018, and 70 aircraft by 2020.

New Airport Development - Muscat Airport

Muscat International and Salalah International Airport including three regional airports are under development and will be the new gateway to the Sultanate of Oman.
The New Salalah International will able to handle one million passengers per annum and the new Muscat International Airport will have capacity to handle 12 million passengers per annum (MPPA). Both these new airports are schedule to be completed in the coming years.
The new airports are designed as ICAO category 4F airports and shall be able to accommodate the world`s largest aircraft, the Airbus A380. The runway has been designed to enable independent parallel operation.
The passenger terminals are designed to the latest "state of the art" technology and in accordance with IATA Service Level A standards.
The total gross floor area for the new Muscat International terminal building is 344,995 m2 with an overall airport land area of 21 km2. Further expansions is planned for Muscat International airport in three subsequent phases, ultimately boosting the airport`s capacity to 24, 36 and 48 MPPA.
There are 10 Main Contracts (MC) delivering the new Muscat and Salalah International airport and 3 Standard Nationwide Contracts (SNC) for all airports.

Key facts

Muscat

• Muscat Terminal Building total gross floor area – 344,995 m2
• ATC tower height – 97 meters
• 96 check-in counters
• 29 passenger boarding bridges
• 30 aircraft remote stands
• 5,500 bags per hour baggage processing capacity
• Two parallel runways, capable to serve world`s largest aircraft A380
• Airside hotel ( 90 rooms capacity for 12 MPPA)

Salalah

• Salalah Terminal Building floor area – 65,638 m2
• ATC tower height – 57 meters
• 24 check-in counters
• 8 passenger boarding bridges
• 8 aircraft remote stands

The new  Muscat International Airport  will have the capacity to handle 12 million passengers annually. Further expansions planned in three subsequent phases will ultimately boost the airport` capacity to 24, 36 and 48 million passengers when the demand is required.

New Muscat International Airport Facts

Description	Facts
Terminal Building Capacity – Stage 1	12 million passengers per annum (mppa.)
Terminal Building Capacity – Stage 2 / 3 / 4	24 / 36 / 48 mppa.
Total Gross Floor Area Terminal Building	334,995 m²
Car Parking Capacity	8,000
Air Traffic Control Tower Height	97m
Existing runway length after extension	4,000 x 60m
New Runway Specifications	4,000 x 60m
Boarding Bridges / Contact Stands	29
Bus Boarding Lounges	10
Remote Aircraft Stands Stage 1 / 2	10 / 30
Check-In Counters	86
Self service check-in kiosks	20
Emigration Counters - Departures	31
Immigration Counters – Arrivals	56
Arrivals Carousels	8 international + 2 domestic
Transfer Counters	12  Counters
In-Flight Catering Capacity	24,000 meals per day
Aircraft Hangar Capacity	2 wide body + 4 narrow body
Airside Hotel Capacity	90 rooms

Contracts for Muscat International Airport

The project has been divided into various main contracts and standard national contracts.

Main and Standard National Contracts for the New Muscat International Airport

Contracts	Description	Contract Awarded to
Project Management	Project Management Consulting Service	adpi
Principal Consultant	Principal Consultant for Design and Supervision	Hill International
MC1	Civil Works - new Runway, Taxiway, Apron, landside development. Access road to terminal	Consolidated Contractors Company - TAV Joint Venture
MC2	Air Traffic Control (ATC), Air Traffic Management (ATM), Data Centre (DC2), Contingency & Training Building (C&T), Crash, Fire & Rescue (CFR)	Carillion Alawi
MC3	Passenger Terminal Building (PTB)	Bechtel-ENKA-Bahwan Engineering Company - Joint Venture
MC4A	Civil Aviation Head Quarters Building	Towell Construction Co. LLC
MC6	IT & Security Systems	Ultra Electronics
MC7	Operational Readiness & Airport Transfer (ORAT)	Munich Airport
MC8	Baggage Handling Systems	Vanderlande Industries
SNC9	Air Traffic Management Systems	Indra
SNC10	Navigational Aids Systems	Thales
SNC11	Passenger Boarding Bridges	JBT Corporation
MC12	Detail Design and Construction of Cargo and Maintenance, Repair and Over-haul Facilities	Awarded
MC13	Detail Design and Construction of Catering Facilities	Awarded

MC-Main
Contract SNC-Standard National Contract

Other Contracts Awarded for the New Muscat International Airport

Contract Description	Contract Awarded to
Dredging works and soil reclamation	Boskalis Westminister
Improving and strengthening the soil (Ground Improvement)	Solitanche Pachy
Construction of channels to discharge wadi water and roadside paving works and installation of Culverts	Desert Line Projects
Design, supply, install and commission a new radar	Raytheon
Construction of rock fill for new runway and taxiway	Galfar Engineering and Contracting
Relocation of water pipe lines and security fences	Al Matar Company
Design and Construction Supervision services for Maintenance, Repair and Overhaul Hangars and Cargo facilities	Ghafari Associates LLC
Design and Construction Supervision for In-Flight catering facilities	Al-Hatmy Engineering

Airport History - Muscat Airport

Beit Al Falaj Airport

Bait Al Falaj Airport, dating back to 1929, was nothing but a dirt track landing strip, mainly put to use for military purposes. It was additionally being utilized by the Petroleum Development Oman Company for its aircraft, flying between Muscat and oil exploration fields in Fahud, Qarn Al Alam and other locations.

Bait Al Falaj Airport was the first airport in Oman, fitted with limited equipment and facilities to serve as a civilian airport. It had a Communication Centre, a Customs Office, asphalt parking for aircraft and a maintenance shed, with theses modest facilities, the airport was able to play a small part in the advancement of civil aviation in Oman.

In the sixties Gulf Air started using the airport for its DC3 aircraft, with the advent of the seventies Pakistan and British Airlines commenced operation in Oman with semi regular passenger flights. Although Bait Al Falaj Airport was used mainly for military purposes in addition to a few civilian flights, takeoffs and landings were fraught with dangers due to the narrow landing strip and high mountains and hills around the airport area.

Bait Al Falaj Airport is now just a memory, the site of the airfield is now the centre of modern commercial and residential buildings.

Seeb International Airport

Oman has been expanding steadily since 1970, when His Majesty Sultan Qaboos bin Said came to power and introduced a programme of economic reforms, boosting spending on health, education and welfare. Recognising the need for a new airport to support the anticipated growth in passenger and cargo movements, a contract was placed by the government in September 1970 for the construction of Seeb Airport now Muscat International Airport.

Situated approximately 32 kilometres west of the city Muscat, the capital of the Sultanate of Oman, it was officially inaugurated on 23rd December 1973. The following year, to demonstrate that the airport could accommodate the world`s fastest commercial aircraft, Concorde landed during the flight test programme.

By the end of the first year, approximately 87,200 passengers has passed through the airport, the airport handled 4.7 million passengers in 2006, an amazing growth the primary reasons for growth are the expansion of Oman`s tourism and business sectors.

In 1983, the airport saw major expansions in the arrival and departure terminals and a new transit hall that included several duty free shops. The current cargo terminal was completed in 1991 with modern facilities on par with other international airports.

A consortium comprising of British Airport Authority (BAA), Bahwan Trading Company and ABB Equity ventures assumes the management and development of Muscat and Salalah Airports effective from January 2002, on a 25-year concession deal as part of the privatisation plan for both airports, Oman Airports Management Co. was formed.

November 2004, the government of the Sultanate of Oman reassumes the management and development of Seeb and Salalah Airports, the government of the Sultanate of Oman and the partners of Oman Airports Management Co. could not reach an agreement on the financial basis for the development of the new terminal at Muscat International Airport, Oman Airports Management Co. is maintained with a change in the shareholding of the company.

Muscat International Airport

The name Seeb International Airport was changed to Muscat International Airport on 1st February 2008, the new name focuses on Muscat, the city whose name is historically associated with the country which is known worldwide.

The necessary approvals for the change of name has been obtained from the International Civil Aviation Organization, hence Muscat International Airport will propagate globally.

OAMC(Oman Airports Management Company SAOC)

Company Information - Muscat Airport

Oman Airports Management Company (OAMC) is a governmental Company and it’s responsible for the management and operation of Muscat International Airport, Salalah Airport and future airports.The infrastructure of the airports such as the terminal buildings, cargo building, runway, apron and car parking is directly under OAMC`s management.

The main functions of OAMC at the airport are to:

• Manage the Airport Assets, Facilities, Infrastructure, Projects and Maintenance Plans.
• Manage the Aerodrome Certification & Compliance, Emergency Planning, Capacity Management and Customer Services.
• Be ready for the new airport and to ensure that OAMC is fully manned, prepared and equipped to operate all the new airports.
• Airfield, Terminal, Flight Information and Fire Fighting Management.
• Manage all the commercial areas such as retail, real estate, fuel farm, concession agreements, car park, airport space adverting, corporate communications and airline marketing.
• Manage Information, Communications and Technology at the Airports.
• Undertake Financial Management and revenue collection from aeronautical and non-aeronautical sources and expenditure payments.
• Development of procurement policies and procedures.
• Provide of Human Resources and administration support for the corporate company
• Facilitate and manage security
• Undertake Health, Safety and Environmental Management for all organizations operating within the Airport Boundaries.

The total staff strength at OAMC is more than 880 employees with an Omanization level of approximately 91%
Mission Statement

Manage, maintain, operate airports and related businesses with a focus on SAFETY, SECURITY and PROFITABILITY to deliver HIGH QUALITY of SERVICES to ALL CUSTOMERS and BUSINESS PARTNERS while fostering a culture of INNOVATION and valuing HUMAN RESOURCES.
Vision Statement

To be a world class organization in airport management and related businesses, contributing to the prosperity of the Sultanate of Oman.

OAMC Board

Dr. Juma bin Ali Al-Juma	Chairman of the Board of Directors
H.E./Dr. Mohammed bin Nasser Al-Za’abi	Vice Chairman of the Board - CEO of Public Authority of Civil Aviation
Air Commodore/ Maktoum bin Salem Al-Mazroui	Sultan`s Armed Forces
Colonel Pilot / Said bin Abdullah Al-Hejry	Assistant General Manager of Airport Security - ROP
Engineer / Mohamed bin Mahmood Al-Zadjali	General Manager of Investor Services and Quality Management - Ministry of Tourism
Mr. Anwar bin Abdullah Al-Raisi	Director General of Metrology and Air Navigation - Public Authority of Civil Aviation
Mr. Said bin Majed Al Shekili	Director of the Department of Human Resources Development - Supreme Council for Planning
Shik. Nasser bin Suliman Al-Harthy	General Manager of  Investments – Ministry of Finance

The OAMC management team members are:

Mr. Saeed Khamis Al-Zadjali	Acting / CEO and GM Technical Services
Mr. Ali Zaid Al Balushi	GM - Operations
Dr. Moaman Mohammed Al Busaidi	GM – Information & Communication Technology
Dr. Khalfan Said Al Shuaili	GM - Readiness
Mr. Aimen Ahmed Al Hosni	GM - Muscat International Airport
Mr. Mahesh Mankodi	GM – Finance & Procurement
Mr. Salim Awadh Al Yafaei	GM – Salalah Airport
Mr. Bader Abdullah Al Hashmi	Chief Audit Executive, Internal Audit
Mr. Abdullah Saleh Al Yafaei	GM – Human Resources & Administration
Mr. Abdulwahab Abdulkarim Al Balushi	GM - Security
Mr. Khalid Said Al Kindi	Board Secretary
Mr. Mohammed Issa Al Harthy	Office Affairs Manager - Chairman`s Office
Mr. Salim Ali Al Harthy	HSE Manager, Safety Compliance & Maintenance
Mr. Samer Ahmed Al Nabhani	GM- Commercial Operations

Muscat International Airport

Muscat International Airport (IATA: MCT, ICAO: OOMS), also called Seeb International Airport is the largest airport in Oman. Situated 32 km from Muscat, the capital of Oman, spread over an area of 21 square kilometres (8.1 sq mi). The airport currently has one terminal with another due to be completed in 2014. The new terminal will have capacity of 12 million passengers a year.^[2] Oman Air, the national carrier of Oman is based on the grounds of Muscat International Airport.

History

The airport opened as Seeb International Airport in 1973, replacing a smaller airfield located in Bayt al Falaj.

The base was used by a detachment of Vickers VC10 tankers from No. 101 Squadron RAF during the Gulf War training with Royal Air Force SEPECAT Jaguars.

Airlines and destinations

Passenger

Airlines	Destinations
Air Arabia	Ras al-Khaimah, Sharjah
Air Blue	Karachi, Lahore
Air India	Bangalore, Chennai, Delhi, Goa, Hyderabad, Mumbai
Air India Express	Kochi, Kozhikode, Mangalore, Thiruvanathapuram
Biman Bangladesh Airlines	Chittagong, Dhaka
British Airways	Abu Dhabi, London-Heathrow
Egypt Air	Cairo
Ethiopian Airlines	Addis Ababa
Emirates	Dubai-International
Etihad Airways	Abu Dhabi
FlyDubai	Dubai-International
Gulf Air	Bahrain
IndiGo	Mumbai
Iran Aseman Airlines	Shiraz
Jet Airways	Kochi, Mumbai, Thiruvanathapuram
KLM	Amsterdam, Doha
Kuwait Airways	Kuwait
Lufthansa	Frankfurt
Oman Air	Abu Dhabi, Amman-Queen Alia, Bahrain, Bangalore, Bangkok-Suvarnabhumi, Beirut, Cairo, Chennai, Chittagong, Colombo, Dammam, Dar es Salaam, Delhi, Dhaka (begins 1 August 2015),[5] Doha, Dubai-International, Duqm, Frankfurt, Goa, Hyderabad, Islamabad, Jaipur, Jakarta-Soekarno-Hatta, Jeddah, Karachi, Kathmandu, Khasab, Kochi, Kozhikode, Kuala Lumpur, Kuwait, Lahore, London-Heathrow, Lucknow, Male, Manila, Medina, Milan-Malpensa, Mumbai, Munich, Paris-Charles de Gaulle, Riyadh, Salalah, Singapore,[6] Sohar, Tehran-Imam Khomeini, Thiruvanathapuram, Zanzibar, Zürich
Pakistan International Airlines	Gwadar, Islamabad, Karachi, Lahore, Peshawar, Sialkot, Turbat
Qatar Airways	Doha
Rotana Jet	Abu Dhabi[7]
Saudia	Jeddah, Medina, Riyadh
Shaheen Air	Lahore, Peshawar, Sialkot
Sri Lankan Airlines	Colombo
SpiceJet	Ahmedabad
Swiss International Air Lines	Dubai-International, Zürich
Thai Airways	Bangkok-Suvarnabhumi, Karachi
Turkish Airlines	Istanbul-Atatürk
United Airways	Chittagong, Dhaka

Cargo

Airlines	Destinations
DHL Aviation	Dubai-International
Cargolux	Hong Kong, Luxembourg
Martinair Cargo	Amsterdam, Bangkok-Suvarnabhumi, Sharjah, Singapore[8]

Traffic statistic

Year	Total passengers	Total Freight including Mail in Tons	Total Civil Aircraft movements
2014	8,709,505[9]	N/A	82,085[10]
2013	8,310,927	120,040	81,244
2012	7,546,715	113,269	73,842
2011	6,479,860	98,780	68,696
2010	5,751,516	96,390	67,160
2009	4,556,502	64,419	55,330
2008	4,002,121	58,486	45,600
2007	4,220,429	77,292	45,655
2006	4,777,747	99,529	46,319

Oman Air launches new services to Goa, India

Oman Air has launched a brand-new service between the Omani capital of Muscat and Goa, India.

The new service, which was announced in January 2015 and started earlier, offers four flights per week.

Goa is Oman Air’s eleventh destination in India, and the service meets strong demand from leisure travellers drawn by Goa’s famed natural beauty.

Furthermore, it provides air travellers from India’s eastern coast with even greater opportunities to visit Oman and experience the country’s rich culture and authentic hospitality

Launching the new service, Oman Air chief executive, Paul Gregorowitsch, said: “I am delighted to announce that Oman Air’s new service between Muscat and Goa is now in operation.

“The service has already been greeted by strong demand from our customers and bookings are running at an encouraging level.

“Goa is noted around the world as a beautiful destination for leisure travellers.

“Its relaxed pace, beautiful scenery and outstanding hospitality sector make it an ideal destination for holiday-makers. It is therefore a much-appreciated addition to Oman Air’s network, as our eleventh destination in India.

“Furthermore, the Sultanate of Oman is seeing continuous increases in the number of Indian citizens visiting our shores. Our new service will offer many of them an even more convenient way of flying to Muscat with Oman Air and we look forward to giving them a warm welcome.”

The new destination is the latest to be announced as Oman Air undergoes its current phase of major expansion.

This will see the airline increase the size of its fleet from 30 in 2014 to 70 by 2020.

Oman Air will also be adding many more new destinations to its network, as well as increasing frequencies on many established routes.

As a result, millions more customers will have the opportunity to experience Oman Air’s award-winning service and authentic Omani hospitality.

Goa’s Portuguese-influenced Indian culture, miles of palm-fringed beaches and abundance of hotels and resorts have, for many years, made it one of the world’s most popular tourist destinations.

Located on the east coast of India and overlooking the Gulf of Arabia, Goa is less than three hours’ flight time from Muscat.

Breaking Fare Sale from Oman Air is Selling Tickets for as Low as 65 OMR Round Trip

Breaking Fare Sale from Oman Air is Selling Tickets for as Low as 65 OMR Round Trip

A breaking fare sale from Oman Air has the airline selling tickets from Oman at remarkably low prices.

See the routes on sale from Muscat:

• Muscat to Dubai for 65 OMR round trip on Oman Air
• Muscat to Chennai for 134 OMR round trip on Oman Air
• Muscat to Abu Dhabi for 140 OMR round trip on Oman Air
• Muscat to Cairo for 153 OMR round trip on Oman Air
• Muscat to Delhi for 170 OMR round trip on Oman Air
• Muscat to Amman for 197 OMR round trip on Oman Air
• Muscat to Bangkok for 199 OMR round trip on Oman Air

The future of air transport : Oman Air A330-300

Referred to as a "Mini Suite", the new first class seat features an 82-inch fully flat bed, with a seat width of 25.5 inches, a 23-inch TV screen, wifi IFE handset, power outlet and two USB ports. The cabin is configured for two rows of 1-2-1, with each suite featuring a "buddy seat" allowing a companion to dine at the single-piece table.

The business class seat, which had already been unveiled on the carrier's two-class A330-200 aircraft last month, features a 77.5-inch fully flat bed, with a seat pitch of 82 inches, a width of 22 inches, and a 17.1-inch TV screen. There are 20 business class seats in the cabin, again configured 1-2-1 and including many of the same features as first class such as a buddy seat and power outlet. 

The new economy seats are configured 2-4-2, and offer a pitch of 34 inches, adjustable head and foot rests, a 10.6-inch TV screen, USB port, and one power outlet for every two seats. AVOD in-flight entertainment by Thales is available in all three classes, and provides "a platform for forthcoming full wifi and GSM connectivity".

Oman Air seeks more flights to India, feels ‘restricted’ by treaty

Paul Gregorowitsch, chief executive officer of Oman Air at a press conference in Goa.– ONA Bambolim Goa: Oman Air would like to operate more flights to India but the Sultanate is "highly restricted" by the bilateral agreements between India and Oman, said Paul Gregorowitsch, the chief executive officer of Oman Air. Stay ahead of the rest and download our free WhatsNews app for Apple, Android or Blackberry He was speaking at a press conference to mark the launch of Oman Air's flight to the Indian state of Goa.  "The Sultanate's airline can do far more in the Indian sectors, but the unfortunate part is we are heavily restricted by the bilateral agreement," he said, adding that Oman Air is committed to contributing to the economy of India. "We would like the same level playing fields the other GCC countries have," he said. He explained, "If you look at the United Arab Emirates and Saudi Arabia and then look at the number of connections from India to Oman, Oman Air is 'heavily discriminated'. We have been fighting for around three years to get our bilateral agreements extended. We are currently in discussions with the Government of India to be able to add more frequencies." Gregorowitsch also reminded, "We are the only airline flying from Muscat to India, but there are many Indian airlines flying from India to Muscat." Asked which destinations would he choose, if given the rights to more flights to India, Gregorowitsch said, "It is a mixed bag of increasing frequencies to existing destinations, but we would think in terms of Kolkata and also (flying to) new airports under development in India, which are opening in 2016." Oman Air flies to 11 destinations in India including Mumbai, Chennai, Kochi, Thiruvananthapuram, Hyderabad, Lucknow, Bangalore, Kozhikode, Jaipur and Goa. TargetThe CEO said, "We would like to increase by 14 destinations by also including the new airports which are under development in India, which is an excellent contribution on return of investment. We would like to grow in the direction of 117 weekly connections to India." On whether that would be possible, he said, "We could do it easily, but if bureaucracy is surviving then it will not happen." Stating that the Indian market is very important, the head of Oman Air said, "Twenty-six per cent of our business is coming from or going to the Indian sub-continent. Oman Air can do far more in the Indian sector, but the unfortunate part is that we are heavily restricted by the bilaterals. On the diplomatic level, our representatives from the Sultanate are knocking daily on the doors of the officials at the ministries in India to get the discrimination, which today exists for Oman Air, to be removed and we hope for a level playing field." He further explained, "If you see the entitlements which have been given to emirates like Sharjah, Abu Dhabi, Dubai and Saudi Arabia and then see how much Muscat in Oman is given, you can see there is a heavy imbalance. "We are restricted today, but we have now fulfilled our complete commitment by introducing the eleventh destination to Goa." The CEO also added, "If you see the number of flights we are allowed to operate between Muscat and India, and restrictions on the number of the seats to be sold, Oman Air is at a disadvantage compared to the many Indian airlines which fly from India to Muscat. There is one national airline from Oman, but there are several Indian airlines flying to Oman and so we are simply asking for a level and fair playing field." About Oman Air flights to Goa, Gopal Ramarao, general manager, Worldwide Sales, Oman Air said, "We understand that there is a lot of travel that happens between Goa and Portugal. We hope to exploit our partnership with the rest of the European airlines. We would also be striving to establish an easier corridor for travel from here to Lisbon." Goa CM attends dinnerLater, Laxmikant Parsekar, Chief Minister of Goa attended the gala dinner hosted by Oman Air in the tourist city. The chief minister said the launch of the flight between Goa and Muscat will improve business, tourism ties between the two countries. He thanked Oman Air for connecting Goa with Oman and said that it will benefit the Goan community that lives In Muscat and their families in Goa. Mohammed bin Nasser Al Zaabi, Chief Executive Officer of Oman's Public Authority for Civil Aviation (PACA) honoured the Goa Chief Minister with a gift. Parsekar, honoured Mohammed bin Nasser Al Zaabi with a shawl. Performance of classical Arabic, Indian and international music from the Oud Hobbyists Association was highlight of the evening.

Now book your return flight from ‪#‎Muscat‬ ‪#‎oman‬ to USA

Reuters: Oman Air to add 20 additional Boeing 737s

Oman Air (Muscat) according to Reuters, is adding 20 additional Boeing 737 aircraft as part of an expansion plan that will double its fleet to 70 planes by 2020, quoting CEO Paul Gregorowitsch.

The increase includes current 737s, delivered from 2017, as well as new 737 MAX aircraft that will be delivered starting in 2019. 10 aircraft will be sourced directly from Boeing and the others from leasing companies.

Oman Air currently operates two Boeing 737-700s and 15 Boeing 737-800s.

Copyright Photo: Paul Denton/AirlinersGallery.com. Boeing 737-81M A40-BD (msn 35287) prepares to land in Dubai.

Oman Air outlook pt 2: can rapid growth, airport upgrades and transit traffic lead to profitabilty?

© CAPA

Oman Air is aiming to significantly narrow its losses over the next two years and be at least break-even by 2017 despite pursuing rapid expansion. The airline has accumulated operating losses of around USD1 billion over the last four years but is banking that achieving higher levels of scale and improving productivity will enable it to become profitable.
However, Oman Air will have to overcome huge challenges and intensifying competition as it rapidly expands its fleet and network. The government-owned flag carrier will need to further increase its reliance on transit traffic, which already accounts for 60% of its passenger traffic.
There will be opportunities to grow transit traffic, particularly in the Asia-Europe market, as its hub airport is upgraded and several new destinations are added. But Oman Air will need to succeed in a sector that has become extremely competitive and is generally low-yielding.

This is the second in a two-part series of analysis reports on Oman Air. The first report took an in-depth look at Oman Air’s new fleet plan. This report examines Oman Air’s recent performance and overall outlook, in particular its pursuit of more transit traffic, as it continues to expand rapidly.

See related report: Oman Air plans ambitious fleet expansion as 787s & 737s are acquired while ATRs & Embraers are axed

Oman Air reports another year of large losses in 2014

Oman Air reported on 28-Mar-2015 an operating loss of OMR96 million (USD249 million) for 2014, representing a 4% reduction compared to 2013. Revenues increased by 4% to OMR398 million (USD1.035 billion).

RPKs were flat while passenger numbers increased by 2% to 5.1 million. ASKs were up 2%, marking the lowest rate of capacity growth in over 10 years, as the flag carrier’s load factor dropped 1.6ppts to 74.4%.

Oman Air has grown rapidly since it shifted its business model in 2007, becoming a widebody operator and a full-fledged flag carrier with an intercontinental network. Previously it was a small but (modestly) profitable short-haul regional carrier.

While revenues have since nearly tripled, Oman Air has accumulated more than USD1.4 billion in operating losses over the last seven years. Annual operating losses have been at or approaching OMR100 million the last four consecutive years, leading to an accumulated loss of about USD1 billion since 2010.

Oman Air annual operating losses (in USD millions): 2008 to 2014

Source: CAPA – Centre for Aviation and company reports

Accumulated revenues over the last four years have totalled about USD3.7 billion. An average operating margin of negative 27%, including negative 24% in 2014, is clearly unsustainable.

Oman Air confident of financial improvements over next three years

Oman Air CEO Paul Gregorowitsch is confident the flag carrier will significantly narrow its loss in 2015, citing productivity and efficiency improvements. The airline plans to grow ASKs by 35% in 2015 while staffing numbers increase by only 13%. Streamlining the fleet as regional aircraft are phased out will also boost efficiency levels while higher levels of scale are gradually being achieved as the overall fleet and network expands.

The bigger test will come in 2017, when Oman Air is expected to break-even or generate a small profit

But the reality is the sharp reduction in fuel prices will be the main driver to any improvement in Oman Air’s financial performance in 2015. The bigger test will come in 2017, when Oman Air is expected to break-even or generate a small profit.

Oman Air will undoubtedly be a more efficient and productive airline in 2017, at which point it be well advanced towards its 2020 objective of operating 70 aircraft to 75 destinations. But generating sufficient revenues and yields to be profitable at its projected 2017 size of 50 aircraft could pose a challenge.

Rapid capacity expansion over the next three years will lower unit costs but will likely put pressure on yields and load factors. Even with ASK growth of only 2% in 2014 Oman Air’s load factor slipped to the lowest level since 2012.

Oman Air average annual average load factor (%): 2004 to 2014

Source: CAPA – Centre for Aviation and company reports

Oman Air grows transit traffic

Oman Air will need to rapidly grow transit traffic, particularly traffic to or from Asia, as it expands. While demand in the Asia-Europe and Asia-Middle East markets is expanding, Oman Air will need to grow its share of these markets at a time other larger airlines are also aggressively adding capacity.

Oman Air’s initial expansion into intercontinental services, beginning with Bangkok and London in late 2007, was part of niche strategy aimed at the point to point market. But as Oman Air has expanded its long-haul network along with its medium-haul network to South Asia it evolved away from this niche and into the more competitive transit market. Further expansion firmly positions Oman Air as a full-fledged network carrier, intensifying competition with Emirates, Etihad and Qatar Airways.

Mr Gregorowitsch told CAPA at a 30-Mar-2015 launch event in Singapore that transit passengers now account for 60% of Oman Air’s total traffic. This includes about a 50% share of passengers in the Indian market. India is now Oman Air’s largest market with 11 destinations accounting for about 25% of its total international seat capacity.

Oman Air international seat capacity by country: 30-Mar-2015 to 05-Apr-2015

Source: CAPA – Centre for Aviation & OAG

New airport to enable further transit traffic growth

Oman Air sees an opportunity to further grow its transit traffic after a major upgrade project at its Muscat hub is completed in 2016 with the opening of an extended runway and new terminal. The new terminal will resolve the current constraints on gates and remote parking spots, which currently prohibits Oman Air from pursuing expansion during its main eastbound and westbound banks.

Oman Air is now able to schedule 60% of its flights within a two-hour window

Oman Air is now able to schedule 60% of its flights within a two-hour window. Services from five of its six European destinations (the exception is Munich) arrive at Muscat in the early morning while connecting flights to South Asia and Southeast Asia depart in the mid to late morning. All flights from Southeast Asia and some South Asia services arrive at Muscat around midday and connect to flights to Europe which depart in the mid afternoon hours. Both banks connect in both directions with regional flights within the Middle East.

The new airport at Muscat will enable Oman Air to further expand its two banks while improving the transit experience for its passengers. The current airport is now a major weakness, particularly given Oman Air’s focus on service.

Oman’s tourism sector remains relatively small

Oman has been working to boost its tourism sector and the investment in expanding Oman Air and the Muscat airport is part of this initiative. Oman has seen encouraging growth in inbound visitor numbers, including 12% growth through the first nine months of 2014.

But inbound tourism remains a relatively small part of Oman Air’s business. Oman recorded only 1.96 million visitors in 2013 and 1.58 million through the first nine months of 2014, according to data from Oman’s National Centre for Statistics and Information. (Data for all of 2014 is not yet available.)

While visitor numbers will continue to rise, it is unlikely to grow as fast as Oman Air’s capacity as the flag carrier doubles its fleet and adds nearly 30 destinations over the next six years. A large portion of this growth will be allocated to the Far East, which is a very small source market for Oman.

Oman to pursue rapid expansion in the Far East

Oman will be working to develop tourism in East Asian markets such as Singapore, China, Japan and Korea. But it will take time – and a lot of hard work – for Oman to be recognised as a tourist destination in these markets.

Daily services to Singapore were launched on 29-Mar-2015 while Oman Air is planning to launch services to a soon to be disclosed destination in mainland China in 4Q2015. Tokyo and Seoul services are expected to be launched in 2016 or 2017.

Oman Air will need to rely heavily on transit traffic beyond Muscat as these new destinations open up, particularly given the relatively large amounts of capacity that will be provided. For example Oman Air launched daily A330-300 services to Singapore on 29-Mar-2015 with about 1,200 weekly one-way seats available to the Singapore market.

Oman Air has allocated the other approximately 800 weekly one-way seats on the Muscat-Singapore-Kuala Lumpur route to the Malaysian market. Oman Air previously served Kuala Lumpur non-stop but decided to add a Singapore stop in both directions and focus on Singapore as the priority because Kuala Lumpur was consistently underperforming.

Oman Air is optimistic Singapore will do well and is particularly encouraged by its initial performance in Manila, which was launched in Dec-2014 and is currently served with three weekly flights. But Singapore is a completely different market than Manila.

Mr Gregorowitsch said only 38% of Oman Air’s Manila passengers to date have connected beyond Muscat. Of the 62% point to point component, 42% is labour traffic (Filipinos working in Oman) and 20% is business traffic. Most of the transit passengers from Manila are connecting to other destinations in the Middle East although Oman Air also has seen a large volume of passengers heading between Manila and Paris.

Singapore could be a challenging market for Oman Air

With Singapore, Oman Air will have to rely significantly more on transit passengers. Singapore-Oman is a tiny market with very few Omanis visiting Singapore and even fewer Singaporeans visiting Oman.

Singapore-Middle East is also a relatively small market. Oman Air will need to rely mostly on transit passengers to Europe, but Singapore-Europe is a highly competitive market. Emirates and Qatar Airways in particular have a large and expanding presence in Singapore along with well established brands while Oman Air is relatively unknown.

See related report: Singapore Aviation Part 2: Emirates & Qatar expand. SIA drops Europe capacity, adds premium economy

Singapore will be an interesting test case for Oman Air, providing some potentially important lessons as it prepares to launch services to China and eventually Japan and Korea

Singapore will be an interesting test case for Oman Air, providing some potentially important lessons as it prepares to launch services to China and eventually Japan and Korea. Oman Air could end up facing some of the same challenges that impacted its performance in Malaysia, where it also faced stiff competition in the Malaysia-Europe market from the main Gulf carriers.

A codeshare with Malaysia Airlines (MAS), which still provides Oman Air with connections beyond Kuala Lumpur to six domestic and three regional international destinations, also was unable to generate enough traffic to sustain non-stops to Kuala Lumpur. Oman Air is keen to leverage the Singapore hub and forge interline and codeshare partnerships with airlines serving Singapore. But accessing seats beyond Singapore at competitive rates could be difficult, limiting Oman Air to the Singapore-Middle East and Singapore-Europe markets.

The expected addition of China, Korea and Japan would give Oman Air seven destinations in East Asia, up from only two destinations three months ago (Bangkok and Kuala Lumpur). In addition to Manila, Jakarta was added in Dec-2014 and is currently served with four weekly flights. Bangkok, which along with London was Oman Air’s original long-haul destination, is served daily.

London and Munich are also served daily, while Frankfurt is served with six weekly flights and Zurich and Paris with four weekly flights. Oman Air is planning to focus long-haul network growth on Asia although it is aiming to add a second daily flight to London from Oct-2015 and is keen to upgrade Paris to daily if Oman can persuade France to expand their air services agreement.

Oman Air needs larger partnership portfolio

Amsterdam is also being added to the Oman Air European network in 2015 but only as a codeshare destination. Oman Air plans to sign in Apr-2015 a codeshare agreement with KLM, which will give it access to KLM’s five times weekly Muscat-Amsterdam service. KLM is currently the only Western European airline with non-stop flights to Muscat, according to OAG data. (British Airways serves Muscat viaAbu Dhabi, Lufthansa via Doha and Swiss via Dubai.)

Oman Air also plans to use KLM for connections beyond Amsterdam to the US while KLM will use Oman Air for connections beyond Muscat to India. Oman Air currently only codeshares with one European carrier, Turkish Airlines. But the Turkish partnership only covers Turkish’s Muscat-Istanbul route.

Oman Air does not currently have any codeshares to North America and its MAS codeshare is the only partnership covering flights beyond any of its destinations. All of Oman’s other codeshare partners – Emirates, Ethiopian, Royal Jordanian, SriLankan Airlines and Qatar Airways – are limited to flights between Muscat and the hub of the partner.

Oman Air will need to continue growing its partnership portfolio as it expands, particularly in Asia. The Asian market already accounts for nearly half of the carrier’s total international seats.

Oman Air international capacity share (% of seats) by region: 30-Mar-2015 to 5-Apr-2015

Source: CAPA – Centre for Aviation & OAG

More partnerships should enable Oman Air to expand its offline network and attract higher yielding passengers. This is particularly important given the carrier’s premium focus.

Partnerships are also an important part of the Oman Air strategy for its cargo, handling and catering businesses. Oman Air recently signed a partnership agreement with Cargolux, which will start serving Muscat from Luxembourg and India on 15-Apr-2015. Oman Air has been discussing establishing a cargo handling joint venture with Singapore Airport Terminal Services (SATS).

Oman Air looked in 2014 at spinning off its handling and catering businesses as part of a corporate restructuring. But it has since decided to keep the units in house and instead pursue joint ventures or other partnerships.

See related report: Oman Air gets another capital injection; but it contributes a billion dollars to Oman's economy

Oman Air also faces potential LCC competition

Oman Air is entering a critical phase as it pursues rapid expansion, prepares for the highly anticipated opening of its new hub airport and tries to improve its financial position ahead of its 2017 break-even target. Oman Air also faces the prospect of new competition in its home market as the government is aiming to select within the next few months and eventually license a potential second local airline which would follow a budget carrier model.

Foreign LCCs currently account for 14% of international seat capacity at Muscat, according to CAPA and OAG data. Foreign full-service airlines account for 34% while Oman Air has a 52% share of international seat capacity at its hub airport.

the Omani market may not be large enough to support two local airlines

While a local LCC would likely stimulate growth, the Omani market may not be large enough to support two local airlines. Oman Air’s ability to grow and become profitable would also almost certainly be impacted if a second Omani airline commences operations.

Growth in India, where Oman Air already faces competition from Indian LCCs, would particularly become difficult as Oman Air would have to potentially share precious traffic rights with the new Omani LCC. Oman Air already faces bilateral constraints in India and is banking on a new air services agreement to enable it to pursue further growth in its biggest market.

The Omani government has been very supportive of Oman Air, recapitalising the flag carrier several times and funding its current expansion plan. But ultimately the airline is expected to be sustainable. An Omani LCC would add to an already long list of challenges that Oman Air needs to overcome if it is to succeed at becoming a profitable entity.