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Mon 5 Jan 2015 02:17 PM

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Oman Air launches $259m cost-cutting programme

National carrier announces three-year efficiency drive; CEO says airline cannot be run 'as though it is a hobby'

Oman Air launches $259m cost-cutting programme

Oman Air on Monday launched a major cost-cutting programme which aims to reduce expenditure by OR100 million ($259.7 million) over the next three years.

The Shape and Size programme is targeting cost reductions across all activities undertaken by the national carrier of the Oman, the airline said in a statement.

It added that none of the reductions will affect the airline's safety or service offered to passengers but did not give specifics about the impact on jobs and routes.

The statement said a total reduction in expenditure of more than OR100 million "should be achieved by Oman Air over the next three years", bringing the company to an operational break-even point by the end of 2017.

Paul Gregorowitsch, CEO of Oman Air, 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 OR420 million 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."

Gregorowitsch was appointed CEO in August with Oman Air’s chairman, Darwish bin Ismail bin Ali Al Balushi, hailing it as the start of a new chapter.

Gregorowitsch, a citizen of the Netherlands, joined Oman Air from Air Berlin, where he sat on its Management Board since 2011.

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Koshy Samuel 5 years ago

Continuously engage and ask your customers on new ideas and what they like to see and implement accordingly.. see the boost in business..Even ask them on what they like to pay for the service and fit the price range to be affordable for all .. make all people travel.. All can travel now..make it the Airline for the people

George Jacob 5 years ago

One simply cost cutting measures is using a single engine while taxing to save fuel.

Michael 5 years ago

Good luck trying to compete with Emirates, Etihad and Qatar.. Look at it this way.. Can Muscat compete with Dubai, Abu Dhabi or Doha? Muscat Airport looks like it's still in the 70's

Rikki Erhart 5 years ago

I must agree with Michael that Muscat Airport looks like
it is still in the 70's. I was late in February this year in Oman and was amazed how disorganized the Airport is and to have to board upstairs while then to have to go downstairs again to board a bus!? And the Airport has undergone changes over time??!
The above said, Muscat is still a very beautiful place and knowing the country since the early 70's a lot of changes for the better having taken place.