No Merger Between OmanAir and SalamAir: What Government Purchase Talks Mean for Oman’s Aviation Business Future
MUSCAT: Eng. Said bin Hamoud al Maawali, Minister of Transport, Communications and Information Technology, clarified that there is no merger between Oman Air and SalamAir, addressing widespread speculation on social media. He emphasized that the discussions involve a government-led purchase or acquisition, not an operational merger.
In an exclusive interview with the Observer, Al Maawali explained the difference between a “merger” and an “acquisition,” noting that the current transaction under consideration would be a government purchase rather than one conducted by Oman Air. He promised that further details would be released “soon.”
Separately, the minister confirmed that a pressing issue causing elevated aircraft fuel costs at Salalah Airport has been resolved following extensive negotiations concluded about two weeks ago. He attributed the high costs to a complicated supply chain involving multiple stages: fuel is procured from Sohar Refinery, transported to storage facilities at the Port of Salalah, then moved by truck to airport tanks before fueling aircraft. This process adds shipping, storage, and handling fees.
Al Maawali suggested that pricing could be better structured across airport contracts, allowing discounts at higher-volume airports such as Muscat International Airport to balance out lower traffic at locations like Salalah, rather than pricing each site independently.
REGIONAL AIRCRAFT PLAN AND NEW ROUTES
On network expansion, Al Maawali revealed plans to deploy smaller regional aircraft aimed at activating underserved domestic destinations including Al Jabal Al Akhdhar, Masirah, Khasab, and Suhar.
He also outlined efforts to enhance regional connectivity, including launching direct flights from Salalah to Saudi Arabia, with future potential routes extending to Somalia and Yemen. From Suhar, the strategy targets links to Taif and Al Ahsa, as well as Shiraz, Bandar Abbas, and Gwadar.
These initiatives align with Oman’s broader goal to reduce aviation operational costs while boosting inter-governorate and regional air travel to support both tourism and business sectors.
Special Analysis by Omanet | Navigate Oman’s Market
The government’s planned acquisition of SalamAir, distinct from a merger with Oman Air, signals a strategic move to consolidate and streamline Oman’s aviation sector, potentially enhancing state control and operational efficiencies. With a focus on deploying smaller regional aircraft to under-served domestic and regional routes, this creates significant opportunities for tourism growth and regional connectivity, while reducing operating costs. Smart investors and entrepreneurs should monitor emerging aviation infrastructure developments and expanded air links as catalysts for new business ventures and increased market access across Oman and its neighboring regions.
