MUSCAT, 27 October 2004 — An international consortium that took over management of Oman’s two main airports some three years ago yesterday blamed funding problems caused by the Sept. 11 attacks and subsequent crises for the collapse of a multi-million-dollar deal with the government.
“Had a succession of international conflicts after 9/11 not happened, I am sure this mutually beneficial deal would have remained intact,” Colin Hobbs, CEO of Oman Airports Management Co. (OAMC), told AFP.
“The whole aviation industry is in difficulty. Some leading airlines are heading toward bankruptcy,” he said. According to a joint statement released Saturday, the Omani government is to reassume management of Seeb international airport in Muscat and Salalah airport, some 1,000 kilometers (450 miles) south of the capital, with effect from Nov. 17.
“Although many options were explored, both parties — the government of the Sultanate of Oman and the partners of OAMC — regret not having reached an agreement on the financial basis for the development of the new terminal at Seeb airport,” the statement said.
OAMC was established in early 2002 with a 25-year management concession as part of the Omani government’s drive to privatize its two main airports. It is 75 percent owned by Capital Aviation Services and 20 percent by the government. Oman Aviation Services Co. holds the balance.
