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Mon 19 Jan 2015 05:06 PM

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Oman Air will achieve profitability in 2017, says CEO

Paul Gregorowitsch outlines strategy to staff as national carrier embarks on major cost cutting exercise

Oman Air will achieve profitability in 2017, says CEO

Oman Air will achieve profitability by the end of 2017 after making cost savings of OR100 million ($259.7 million)  over the next three years, the company's CEO has told staff.

Paul Gregorowitsch outlined the plan at a global conference of Oman Air staff which was opened by Darwish bin Ismael Al Balushi, chairman of Oman Air.

Gregorowitsch said profitability has always been an aim for Oman Air, adding that the time has now come for Oman Air to stop relying on the Government of Oman's financial backing.

The airline's loss in 2014 was OR110 million.

He said in a presentation: "With the start of 2015, we have set new financial targets for Oman Air. Whilst these are more challenging than in previous years, our vision, objectives and values remain the same.

"Our objectives are to be a safe airline, to be the airline of first choice, to make money by increasing revenues and reducing costs, to cater for growth as set out in our 10 year plan, and to contribute to the development of the sultanate."

He added that the future will mean "becoming a more modern, business-driven enterprise - one that does not rely on financial injections from the Government of Oman."

Earlier this month, Oman Air launched a major cost-cutting programme which aims to reduce expenditure by OR100 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.

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.

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