News

Oman Air embarks on ‘substantial’ cost-cutting

Oman Air is pledging to maintain service standards while embarking on wide-ranging cost cuts.

The Gulf carrier is imposing a ‘shape and size’ efficiency scheme aimed at achieving “substantial reductions” in expenditure.

The aim is to make cuts worth more than 100 million OMR over the next three years, bringing the airline to an operational break-even point by the end of 2017 when it is expected to be operating a fleet of 50 aircraft.

“None of those reductions will affect the airline’s safety or the high standards of service offered to valued customers,” Oman Air said.

More than 400 staff will attend a global “to become the best” event in Muscat on January 15 to be briefed on “how to contribute more effectively to the development of an efficient, profitable and respected airline”.

Chief executive Paul Gregorowitsch said: “We are determined and committed to reshape Oman Air to become a more modern business-driven enterprise – one that does not solely rely on financial injections from the government of Oman.

“Oman Air contributed almost 420 million OMR to the gross national product of the Sultanate during 2014. We are also aware that we have to contribute to the infrastructure of the country by serving domestic airports like Sohar.

“Furthermore, and in line with the nation’s Omanisation policy, we are committed to developing for the future the educational and career potential of young Omanis. These important duties do not, however, constitute an excuse to run the airline as though it is a hobby.

“We all have to work hard and to make sacrifices to become an even better, service oriented, but self-supporting airline. We are in business to be customer and profit-driven.”

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.