MUSCAT, 17 March 2007 — The government is fully poised to increase its stake in Oman Air, the Sultanate’s national carrier, to 81 percent from the present 34 percent.
The step is part the campaign to let Oman Air strategically expand its operations in a big way to compete with the best in the market. Shareholders of the national carrier at an extraordinary meeting have already approved a proposal to raise the company’s share capital from 13.282 million rials ($34.5 million) to 50 million rials ($130 million) by a private placement of shares in favor of the government.
More precisely, the government is pumping an additional 56.7 million rials ( $147 million) to the capital of Oman Aviation Services (OAS), the parent body. The private placement of 36.7 million shares will increase the government’s stake in the airline to 81 percent.
“We have come long way. This development is indeed a significant revolution in the company’s history,” Usama Karim Al-Haremi, Oman Air’s manager of corporate communications, said.
He said the company was fully geared up to meet today’s demand. “In today’s commercial airline industry, success is considered by the size of fleet. 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.’’
Oman Air has carved out a profitable niche using single-aisle airplanes.