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Oman Air plans to buy three aircraft by 2007

MUSCAT — Oman Air wants to buy three wide-bodied aircraft by May next year and is considering models from both Boeing and Airbus, the airline’s chief executive said yesterday.

Oman Air is pushing through a five-year modernisation programme as it takes on fierce competition in a region that is home to some of the world’s fastest growing airlines.

The airline, in which the sultanate’s government has a 33.8 percent stake, wants to renegotiate fuel supply contracts to bring down costs and is looking for bank loans to fund the aircraft purchases, chief executive Ziad al Haremi said.

“Initially, we are looking for three 200 or 220-seater aircraft and are evaluating different options now,” al Haremi told reporters.

“The ideal plane for our business model will be either Boeing 787s or Airbus 330s or 350s.”

The new aircraft are expected to join the fleet by May next year, Al Haremi said, adding that the airline’s board had yet to approve the plan.

Oman Air now has a fleet of 10 aircraft serving destinations in the Middle East and the Indian sub-continent.

Oman Air, already facing stiff competition on regional routes from the likes of Dubai-based Emirates, also has to share its Muscat hub with regional carrier Gulf Air.

Oman’s government has a stake in Gulf Air as does the Gulf kingdom of Bahrain. Another co-owner, the emirate of Abu Dhabi, announced last year that it was pulling out of the airline, which is now moving more flights to Muscat.

“But this will not affect our operations now. We are a niche carrier and the preferred airline of Oman,” said Haremi.

Gulf Air will operate 189 flights a week from Muscat from the end of March against the current 124 flights.

Haremi said Oman Air would be talking to Gulf Air on how the two airlines could cooperate.

“Oman Air expects to improve its net profit during the current year due to cost cutting measures,” Haremi said.