Oman Air has announced a significant transformation program and general restructuring, which will be implemented over the coming 3-4 years.
A decision not taken easily has been made to try and address the poor financial position Oman Air finds itself in.
Over time, losses have only continued to grow, and debt has risen. Part of the turnaround plan will see four main pillars at the forefront. This includes corporate governance, commercial aspects, human capital, and lastly, one of the more talked about areas, financial sustainability.
An International management consulting firm recommends such a plan for Oman Air to undertake after what was described as a thorough assessment of the company, performance and future outlook.
The airline’s network will now see a microscope put on it to determine if any routes need to be cut. Integrating with Salam Air has also been labelled as high on the agenda.
Oman Air isn’t the first and certainly won’t be the last company within the aviation industry to turn to restructuring to move through hard times. The effects of the pandemic no doubt lingering on some airlines more than others.
Oman Air has an in-service fleet of 40 units. However, it’s benefitted from a relatively young fleet where the mean age is only 6.9 years. Its most significant aircraft type measured by size and units is the 787 series, where 18 aircraft are in service, comprising 33% of the active fleet.