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Oman Air Group reveals its achievements and future projects - a
good year for Oman Air after it has passed the slow growth phase of revenues and high operating expenses -
Oman Aviation Group said that through the Oman Air Strategic Transformation Program, it has managed to restructure the company beyond the slow growth of revenues and increase operating expenses by implementing 13 initiatives, the most important of which is the restructuring of the airline and the operational sustainability program by setting higher standards to reduce operational expenses by providing a high amount of Fuel by 1 million gallons during the past four months, in addition to the preparation of a special program for the crew to operate efficiently and raise the level of service and reduce weights on aircraft in the use of hospitality in the cabin Irh which contributed to many benefits in terms of raising the quality of service and safety of passengers and to reduce losses and increase revenues, which will support Oman Air in maintaining good performance in the coming years as well as skipping losses in 2024.
This came during a press conference held yesterday by Oman Aviation Group, which was attended by Mustafa bin Mohammed Al Hinai, Chief Executive Officer, Abdul Aziz Bin Saud Al Balushi, Chief Executive Officer of Oman Air and Ayman Bin Ahmed Al Hosani, Chief Executive Officer of Oman Airports.
He pointed out that in light of the high oil prices, Oman Air was able to control non-oil expenses at a time when the fuel price was a major challenge, noting that 54 million riyals were allocated for the first four months of the fuel budget for this year, while the value of spent fuel to 69 million riyals The time when the period saw a rise in oil prices.
15-35 per cent of the value of Oman Air contracts was provided for the offshore stations to which the flights are going. The savings rate was 7.2 million riyals during the first four months of this year and is expected to reach 10 million riyals by the end of the year.
"From January to April, Oman Air achieved a 24 per cent growth in net general income and a good 4 per cent reduction in non-oil expenses," said Mustafa Bin Mohammed Al Hinai, Oman Aviation Groups Chief Operating Officer.
He added: "A complete strategy has been developed on passenger growth, from 74 per cent to 79 per cent on average per flight on Oman Air. On the next flights to the new routes to Casablanca in Morocco and the operational line to Turkey, the rate of bookings is very high. We are currently working on the opening of the Russian routes of Russia and the Maldives, and one of Oman Airs 737 Dash 8 aircraft will arrive on the 13th of this month. Oman Air will also launch one of its modern aircraft with three Class, Economy, This month the 787 Dash 9 Boeing is considered to be modern in terms of interior cabin quality and model cabins equipped with a different approach to the aircraft currently operated by Oman Air.
11 million riyals profits
Oman Airs revenues rose by 24 per cent compared to the year 2017 for the period from January to April this year. Omans total expenses also declined by 4 per cent for non-oil expenditures. Fuel prices rose by 20 per cent.
Oman Air reported a profit of RO 11 million over the same period of 2017 due to the increase in the number of passengers on Oman Air by 79.8 percent.
Al-Hinai said this year that it is very good for Oman Air after setting its own strategy. Through the indicators we can say that Oman Air is heading towards a total stability stage in 2024, due to an increase in the income ratio and a decrease in the reality of the total expenses of the company.
"We are working on two major strategies by linking Asia to Europe. The team has visited four countries in Asia, including Indonesia, Singapore, Hong Kong and China. We have worked with strategic partners. We are working with the Netherlands, Britain and Belgium to develop similar strategies through companies operating in the private sector , And linking those airports to the airports of the Sultanate.
This is one of the major operating systems in the aviation sector. The concept will soon be developed by Oman Aviation Groups announcement of Muscat International Airport City and is in the final stages. The Group is also working on the strategy of promoting the aviation sector with the tourism sector which is one of the main strategies. Tourism is 11.7 million tourists by 2040 and Oman Aviation Group is committed to contributing to this figure.
Good indicators for Oman
Aviation Services
One of the achievements of the group was the separation of service units from Oman Air (ground handling, catering, air freight, hospitality and free market). A new airline company was established in Oman Aviation Services to enable Oman Air to focus on aviation operations only, New flight and upgrade services.
The airlines CEO said that Oman Aviation Services has achieved good performance through a 4% increase and a reduction in the companys general expenses. The Group has maintained a good penetration rate of more than 80% in the companies operating in the sector. In Asia, Europe and Africa to connect the Sultanate with these three major destinations.
Oman Aviation Services currently consists of 5 subsidiaries, Oman Land Handling, Oman Aircraft Supply Services and Muscat Duty Free, Oman Satas, Oman Air Cargo Handling and Oman Hospitality Services, currently represented in Golden Tulip.
Al-Hinai said that Omans revenues for ground handling increased by 4 percent during the first four months and expenses increased by 14.3 percent due to the move to Muscat International Airport. Omans aviation revenue grew by 4 per cent as passenger traffic at Muscat International Airport and other airports increased, while expenses rose only 2 per cent. Oman Satas increased its revenues by 24 per cent. In terms of free market Muscat, revenues rose 20.6%, while Omans tourism hospitality revenue of the Golden Tulip hotel fell 14%.
Airport upgrading
In terms of the objectives of Oman Airports Company, airport efficiency has been upgraded and the Commercial Operations Unit has been restructured to suit the operation of Amman airports for Muscat International Airport and other regional airports, which will enable Amman airports to be among the top 20 airports by 2020, Gates of opportunity and beauty.
In order to do so, it has worked to control the general expenses and increase revenues. The group will work in coordination with Amman airports to develop a strategy for the commercial side, which will strengthen the status of Amman airports and make it an economic zone capable of enabling the tourism sector and logistics and work in an integrated environment.
He said that with the move to the new building of Muscat International Airport, expenses rose by 169.7 percent last May due to the expenses of the airport facilities. It is usually the normal effect of moving from a small building of 60,000 square meters to a new building of 360 thousand square meters. By 41 percent.
Consolidation of the Tender Committee
The group has been able to consolidate the internal tenders committee of the Groups subsidiaries (Oman Air, Amman Airports, Oman Aviation Services), through which contracts are included for all companies through standard contracts such as technical licensing, insurance, maintenance, public procurement, legal and technical contracts, As well as the consolidation of a number of service contracts, as well as the consolidation of support services through the establishment of a joint service center, which is the standardization of support services for the companies of the group, a center specialized in the provision of services As well as administrative, financial, legal, technical and human resources services, and the establishment of the Centers system is currently under way with the best international methods.
The Group is working on developing the aviation sector through a number of methods, including the implementation of a strategy that is compatible with the tourism and logistics sectors through 12 growth and opportunity initiatives, as well as implementing the Sultanates air freight strategy through 23 initiatives to empower the domestic air cargo sector and promote economic activities such as fisheries Agricultural and food products, as well as the opening of investment areas for international companies in the air freight and express mail sector. Through these initiatives, airports will be able to operate in a consistent and harmonious manner according to the airport cities system.
Since its establishment, Oman Aviation Group has been working on a number of key strategies including participation in the National Aviation Strategy, Oman Aviation Group Strategy, Oman Air Strategic Transformation Strategy and Oman Air Freight Strategy, and in the coming period we will develop two major strategies: Oman, in line with the new approach of the Oman Aviation Group, and the strategy of developing the aviation sector through the tourism sector and work according to the indicators on which the national strategy works Tourism.
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