Oman Air raises capital to RO300mn
Published: 01/05/2009 11:32 pm
The annual general meeting of Oman Air recently approved a proposal to raise the capital of the company from RO50mn to RO300mn
The annual general meeting of Oman Air recently approved a proposal to raise the capital of the company from RO50mn to RO300mn.
The step is aimed at enhancing the operational and technical potential of the company to enable it to provide a world-class service to passengers," said Ahmed bin Abdunabi Macki, Minister of National Economy and Deputy Chairman of Financial Affairs and Energy Resources Council.
Macki, who is also the chairman of Oman Air, added that the airline has incurred a loss of RO42mn in 2008, compared to the RO4.02mn profit in 2007, mainly due to an increase in fuel price in the first half of 2008. This alone accounted for 42 per cent of the loss.
"The loss also resulted from the expansion of operations that included purchasing new planes, operating new international routes, raising the employees' salaries as well as improving the support services for the planes in a bid to compete with the other companiesoperating in the world travel market," the minister noted.
He explained that the sultanate would go ahead with its development plans and projects in different fields. The minister has also said that airline business is capital intensive and extremely competitive.
"New routes, especially long haul routes take a few years to mature before they yield returns. While the airline is expected to be self sufficient and profitable only in the long run, it will continue to generate significant economic value to the nation in the interim as Oman Air will be a great brand ambassador for the sultanate and will promote tourism.""