Oman Aviation Services increases share capital

From RO13,282,500 to RO50,000,000 (USD129.9 million) by private placement of shares with the government of the Sultanate of Oman on Wednesday 28 February 2007, Usama Karim Al Haremi, Manger Corporate Communications and Media Department of Oman Air stated that this step is considered to be a very significant revolution in the company's stride out noting, that (OAS) since established in 1981 has come a long way. The company has prepared itself to meet today's demand, while being totally in accord with an anticipated future. OAS has dedicated business units, which aim to provide proficient and customer friendly service through intensive efforts of staff and management for all Passengers and Airlines operating out of Seeb International Airport.

"In today's commercial airline industry, success is infrequently considered by the size of your fleet or the airplanes you fly. Oman Air at a time when most airlines are struggling to remain profitable in the current economic environment has been flying high with a modest fleet of Boeing 737s. Surrounded by large carriers that primarily fly twin-aisle airplanes on long-haul routes, Oman Air has carved out a profitable niche using single-aisle airplanes to connect with a growing number of regional markets. Oman Air's strategy was to attract business travelers using comfortable, medium-range airplanes and high frequencies. We have effectively grown since our humble beginnings in 1993. The airline was created as a subsidiary of Oman Aviation Services, a ground services and cargo-handling. The company's objective and plan was to become the carrier of choice for business travelers. Oman Air recognized it needed the right equipment to meet business travelers' expectations for reliable and frequent flights." He said.

He added that the expansion progress began with a decision to buy new Boeing 737-700s and 737-800s to replace older Airbus A310s and early 737 models. Oman Air was the first carrier to introduce the Next-Generation 737 to the Arabian Gulf Region, when it accepted its first 737-800 in 2001. The national carrier of the Sultanate of Oman now plays an important role in promoting Muscat as the major aviation hub in the Middle East, through connecting it with major cities of the world. The airline operates a fleet of six Next-Generation 737s and four turboprop ATR 42 aircraft. The carrier will add an additional three B737-800. One aircraft will be available on March 9 on a lease agreement. Another purchased one arriving in November. The third aircraft will be available in April 2008 on lease. The fleet simplification is critical to the airline's expansion plan, since Oman Air plans to grow gradually into long-range markets. The strategy necessitate that the airline expand its fleet of jets to bigger than the 737. The ideal plane for our upcoming operations is an aircraft with 230-240 seats.

"The National Carrier of the Sultanate is looking a lot closer to home for our business expansion, and will focus on those destinations that produce tourists to Oman. Oman Air's development will rely in part upon the Sultanate's promising tourism trade. Our growth will naturally, go hand in hand with the development of tourism in Oman. The mere fact that HM The Sultan of Oman has established the Ministry of Tourism reveal the pledge of the country towards developing this vital sector. One of our major strategies is to fuel the growth potential of tourism in Oman. We always work closely with the Ministry officials for this common goal. Oman Air has carved a niche of its own among the Gulf airlines with its true hospitality and traditional warmth that is quintessentially Omani. It re-dedicates itself to the service of customers, envisaging an increased role in the development of the Sultanate of Oman's economy by facilitating and enhancing trade and tourism links." He further said.

In conclusion Al Haremi clarified that Oman Air is considering all possibilities for future expansion and would for such routes continue with the same strategy of operating high-frequency nonstop service with right sized aircraft. Until that time, the airline will continues to focus on what it does best-providing reliable service, frequent flights and exceptional comfort and hospitality. Setting the standard and focusing on pleasing the customer, which is the key differentiator in a competitive marketplace. Oman Air spares no expense on amenities. Right now OAS is in touch with a company to revamp the image of the airline, and this involves everything, uniforms, aircraft, livery etc."