Oil slump accelerates Oman Air’s path to profit

Plummeting oil prices will mean an imminent end to govt financial support for Oman Air. The rapidly expanding carrier has been heavily underwritten for many years by the nation’s govt, which sees it as a tool to benefit the overall economy, notably by increasing inbound tourism. This financial support has enabled Oman Air to grow and raise awareness of Oman’s attractions as a leisure and business destination, the airline’s deputy chairman and Ministry of Tourism undersecretary Maitha Bint Saif Bin Majid Al Mahruqi said. However, the long-term aim has always been to create a sustainable, profitable business. And the fall of up to 70% in oil prices, while offering financial benefits for Oman Air, means national income has been heavily reduced. “Significant reductions in public expenditure are required,” Al Mahruqi said. “That means an imminent end to the govt’s financial support for Oman Air, requiring urgency in a rapid transition towards profitability.”<br/>