SalamAir Acquisition: Key Steps in Oman’s Dual Airline Strategy and Its Impact on Business Opportunities
International Law Firm Advises Oman Air on Acquisition of SalamAir
International law firm Bird & Bird has acted as international counsel for Oman Air in its acquisition of 90% of SalamAir’s issued share capital, marking a pivotal moment for the aviation sector in Oman. This transaction aligns with the Sultanate’s broader goals of enhancing its aviation industry while supporting its long-term economic and tourism ambitions.
This acquisition is part of Oman Vision 2040, a strategy aimed at developing a comprehensive and sustainable national aviation ecosystem. Aviation has been identified as a crucial factor in achieving economic diversification and improving global connectivity.
Under the government’s evolving dual airline strategy, both Oman Air and SalamAir will continue to operate as independent brands, each with unique identities, service offerings, and target markets. SalamAir will maintain its focus on the low-cost segment, while Oman Air will persist as the full-service national carrier. This alignment aims to enhance the overall aviation experience in Oman, providing passengers with increased options in both full-service and low-cost travel.
The acquisition also aims to bolster the financial sustainability of Oman’s aviation sector. By enhancing collaboration between the two airlines, the government seeks to streamline cost structures, improve financial resilience, and strengthen revenue quality, including in aviation-related services such as ground handling. With the full support of the government, SalamAir is expected to further its role in expanding low-cost connectivity, boosting inbound tourism, and facilitating regional travel.
Founded in 2016 and headquartered in Muscat, SalamAir is Oman’s first low-cost airline. It operates an expanding network of domestic and regional routes across the Middle East, South Asia, and East Africa, playing a significant role in enhancing accessibility and promoting tourism growth.
Oman Air, established in 1993 and also based in Muscat, serves as the national flag carrier. The airline operates a full-service network that spans the Middle East, Europe, Asia, and Africa, helping to position Oman as a premier destination for long-haul and regional travel.
The Bird & Bird corporate team was led by partner Simon Allport in London, with support from senior associate Will Holder and a broader team in Singapore. They also collaborated with local counsel Al Busaidy, Mansoor Jamal & Co., led by partner Mansoor Malik.
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The acquisition of SalamAir by Oman Air represents a significant opportunity for businesses in Oman to tap into a more integrated aviation sector that enhances tourism growth and connectivity. With the dual airline strategy, investors should consider the potential for increased passenger volume and expanded service offerings, while being mindful of operational efficiencies that could reshape competitive dynamics. Being strategic now can position entrepreneurs to benefit from this evolving landscape, aligning their ventures with Oman’s Vision 2040 goals.
