Muscat Daily: Oman Air’s new CEO Con Korfiatis wants to target China as a strategic market once the airline stabilises; the two major markets currently not on his plans are the US and Australia.
“China is a huge tourist market with completely unexploited potential,” he said in an interview with AeroTime, a global aviation digital hub. Korfiatis also sees opportunities in Africa, South Asia and Europe, where the airline currently serves a limited number of destinations.
“We have a fantastic location geographically for access to Africa. So, I see opportunities in Africa going forward. South Asia also has lots of opportunities and, of course, Europe. We’re only touching a handful of places in Europe, and we believe we can bring in people from many other places into Oman,” he told the digital magazine.
Korfiatis emphasised a “measured” approach to Oman Air’s future milestones, focusing on consolidating the airline’s market position before launching any new major projects. “Don’t expect any new aircraft orders, not in the next six months or 12 months at least,” he said. “We’ve got to focus on our transformation and on fixing our foundations.”
By mid-2026, Oman Air plans to phase out its 737 Next Gen aircraft and operate a unified fleet of 787 Dreamliners and 737 MAXs. This move aims to streamline operations with common aircraft types in both the wide-body and narrow-body categories. “By mid-2026, the NGs will have left the fleet and we’ll then become a full 787 and 737 MAX operator,” Korfiatis explained.
Regarding passenger experience, Oman Air will maintain its strong two-class product offering, with high-quality business and economy class services. While Premium Economy is being considered, there are no immediate plans to introduce it, he informed.
The airline’s current first-class service, available on only two aircraft, is under review for long-term viability.
Oman Air’s entry into the oneworld Alliance, expected to be formalised in the second half of 2024, will enhance its global reach and offer customers recognition and benefits across partner airlines. The alliance will help Oman Air connect to destinations it cannot serve directly, Korfiatis informed.
Looking ahead, Oman Air will incrementally increase frequency on some routes and introduce seasonal services, maintaining a steady but modest growth trajectory. “It’s a measured approach,” Korfiatis said. “I think it is wise.”
National carrier lost RO2bn since 2011
Muscat – Oman Air has lost RO2bn in operations since 2011 and RO185.6mn in 2023, the national carrier’s 2023 Annual Report revealed.
In 2023, the airline made significant strides in its recovery from the effects of the COVID-19 pandemic, with load factors improving to almost pre-pandemic levels, stated H E Said bin Hamood al Mawali, Chairman of Board of Directors, Oman Air, in the report.
“However, despite these commendable achievements, the stark reality is that the business in its current state remains unprofitable,” he added.
The long-standing mismatch between unit revenues (RASK) and unit costs (CASK) has resulted in the cumulative loss of RO2bn at the operating level since 2011. “This mismatch stands in glaring contrast to most regional peers, impacting the majority of routes, and demanding radical improvement,” H E Mawali stated.
The airline continued to burn cash in 2023, requiring an RO60mn injection from the government. Following RO392mn in loans taken on by the company in the last five years, the airline’s debt position as of December 2023 remained unsustainable.
“Long term liabilities (debt and leases) reached RO1.6bn in 2023 versus RO800mn-RO900mn in 2018-2019, and future cash flow projections are insufficient to fund operations and investment requirements without further state cash injections,” the chairman rued.
https://www.muscatdaily.com/2024/07/21/oman-air-eyes-china-africa/
