Oman Aviation
Group is considering
a $6bn financing
to meet the future
requirements till
2030, which include
the expansion of
Oman Air fleets
and the next level
of expansion at
Oman’s airports
companies in a complete system under
the operator called the National Holi-
days Operator. The holidays packages
will be available on the Internet and
any holiday provider can buy these
holidays from the Sultanate. The Oman
Aviation Group’s role is to sell holidays
to travel and tourism companies. The
group will not be a competitor to these
companies but as a partner only to cre-
ate good and exciting holidays that may
last forever in the memories of tourists
visiting the Sultanate.
Oman Aviation Group is also working
with the Ministry of Tourism to promote
tourism, with the aim of highlighting
Oman’s strategic location and its
thousands of kilometres of coastline
as well as the activities, forums,
exhibitions and conferences in the
Sultanate.
How was the contribution of the
aviation sector to the national GDP in
2018?
In 2018, the sector contributed about
RO174mn to the national GDP, while
direct and indirect contributions to
the tourism sector reached RO1.5bn.
Oman Aviation Group has laid out a
plan for the sector up to 2020, aimed
at achieving a growth rate of 5 per
cent annually.
Please talk about the group’s efforts
to enhance the competitiveness of the
aviation sector?
Competitiveness is very important
for us. IATA has ranked the Sultanate
64th on the world level. As a group, we
seek to jump to the 50th place in 2020.
Today we handle 18 million passengers
which hopefully will increase to 40
million passengers in the year 2030.
In order to reach this figure, we must
strengthen our competitiveness and
open additional routes either through
Oman Air or through other airlines
so that the Sultanate will be linked
to the whole world. The other side
of the competitive side is that many
companies of the group have
received several international awards
and certificates.
Oman Air alone has received more than
12 international awards, and Oman
airports have won more than five
international awards. Most recently,
Muscat Airport was named the Best
Airport in the Middle East for 2019 at
the 26th World Travel Awards. The
airport services have received more
than three international awards. This
proves that Oman is now competing
in the field of travel and tourism. The
most remarkable event for the Sultanate
in 2018 was the opening of the new
Muscat International Airport, whichplays a prominent role in displaying the
attractions and beauty of the Sultanate.When can the group become
self-sufficient and stop receiving
government support and subsidy?
The Oman Aviation Group is currently
relying on government financing.
However, we are looking to be self-
sufficient by 2026. There will be a
special strategy for growth. Today,
we cannot say that the government
is subsidising Oman Air directly, but
rather it supports Oman Air in certain
areas with the larger national interests
in mind. We still need government
support, although its funding hascome down, compared to the previous
years. By 2026, we will reach a stage
of complete financial self-sufficiency.
We hope to reach there even before
this date, if our strategic plans are
implemented properly.Oman Aviation Group is considering
a $6bn financing to meet the needs
of the group and its companies till- The group has already floated
a tender to explore the best possible
options such as debt tools, investment,
sukuk, debentures, direct loans and
public offering. The banks will submit
their proposals on the best options for
the group to meet its requirements
for Oman Air’s fleet expansion and
the next expansion of Oman airports
which will be due by 2023, as the
passenger traffic is expected to reach
about 40 million in 2030. The finance
strategy that will be approved later by
the relevant authorities will ensure
financial independence and sustain-
ability for the group. The aim of this
tender is to explore the best options.
The needs will be identified when the
plan is approved by the BoD and the
relevant organisations.
What are the benefits of integrating
the entire aviation sector under one
umbrella?
The launch of our new identity reflects
our commitment to enhance our
growth, reduce the operational costs
and opening new horizons for other
economic sectors. These strategic
aims were not adopted by any other
organisation.Tell us about your Omanisation and
human resources development plans?
In just one year, Oman Aviation Group
has generated as many as 980 direct
jobs to Omani youth and has also helped
create and support nearly 8,000 indirect
jobs for them. Our Omanisation rate is
about 91 per cent, while Omanisation
rate in the sector in general is 80 per
cent. Today, the group is equipped with
highly talented national workforce with
comprehensive experience in aviation,
tourism and logistic support.