Alan Dron Apr 01, 2014
By Rob Finlayson
Middle Eastern carrier Oman Air has reported a loss of OR113.3 million ($294.3 million) for 2013, widened 16% from 2012. Revenues rose 10% to OR381.7 million.
Passenger boardings climbed nearly 13%, to 4.99 million, while cargo volumes rose 7% to 119,700 tonnes. Freight operations benefited from the enhanced capacity offered by a block space agreement with DHL between Muscat and Dubai.
At the carrier’s AGM, chairman Darwish Bin Ismail Al Balushi said Oman Air’s losses were attributed to continued investment in new aircraft. The carrier, which is growing rapidly in an attempt to achieve critical mass, will take delivery of the first wave of 20 new aircraft later this year.
Oman Air plans to spin off several aspects of its activities into separate companies as the carrier continues to expand.
Al Balushi said the airline’s operations over the past two decades have gradually diversified into areas including charters, ground handling, cargo handling, catering and duty-free businesses.
He said the carrier’s continued growth means it might be better managed as independent businesses with dedicated managements. Therefore, Oman Air has planned to spin them off into separate legal entities beginning with ground handling and cargo handling businesses. They would continue to operate within an Oman Air Group. Final decisions and timeframes will be announced following consultations with the government, the airline’s owner.
By Rob Finlayson
Middle Eastern carrier Oman Air has reported a loss of OR113.3 million ($294.3 million) for 2013, widened 16% from 2012. Revenues rose 10% to OR381.7 million.
Passenger boardings climbed nearly 13%, to 4.99 million, while cargo volumes rose 7% to 119,700 tonnes. Freight operations benefited from the enhanced capacity offered by a block space agreement with DHL between Muscat and Dubai.
At the carrier’s AGM, chairman Darwish Bin Ismail Al Balushi said Oman Air’s losses were attributed to continued investment in new aircraft. The carrier, which is growing rapidly in an attempt to achieve critical mass, will take delivery of the first wave of 20 new aircraft later this year.
Oman Air plans to spin off several aspects of its activities into separate companies as the carrier continues to expand.
Al Balushi said the airline’s operations over the past two decades have gradually diversified into areas including charters, ground handling, cargo handling, catering and duty-free businesses.
He said the carrier’s continued growth means it might be better managed as independent businesses with dedicated managements. Therefore, Oman Air has planned to spin them off into separate legal entities beginning with ground handling and cargo handling businesses. They would continue to operate within an Oman Air Group. Final decisions and timeframes will be announced following consultations with the government, the airline’s owner.
