Gulf’s Oman Air seeking further government aid, targets 2024 break-even

Author of the article: DOHA — Oman Air is seeking additional financial assistance from the government and will raise more debt as it recovers from the pandemic, with a target of breaking even in 2024, its chief executive said. The state-owned Gulf carrier has received government aid during the pandemic but further state support was…
Gulf’s Oman Air seeking further government aid, targets 2024 break-even

Author of the article:

DOHA — Oman Air is seeking additional financial assistance from the government and will raise more debt as it recovers from the pandemic, with a target of breaking even in 2024, its chief executive said.

The state-owned Gulf carrier has received government aid during the pandemic but further state support was needed to help cover next year’s operational costs, Abdulaziz Al Raisi told Reuters.

He did not disclose how much support had been received so far, or how much more the airline needed.

Al Raisi, who took over as CEO in 2018 after serving in the role in an acting basis, also said the airline has raised debt against non-core aviation assets like hotels, and planned to raise more to cover operational costs.

He said that while the loss-making airline was still receiving government aid, support was at lower levels than in past years.

Oman, among the weakest countries financially in the oil-rich region, has introduced austerity measures over the past year as it looks to contain state deficits and ballooning debt.

The airline had laid off 15% to 20% of its 5,800 staff during the pandemic, Al Raisi said, though the workforce will be expanded as operations ramp in response to passenger demand.

Oman Air was currently operating about 40% of its fleet, he said, with that to increase to 60% to 70% in the first quarter.

The airline, which according to its website has a wide- and narrow-body fleet of 40 jets, expects to return to pre-pandemic passenger traffic of 9.5 million a year by 2023, by which time it also expects to have rebuilt its network of 52 destinations. (Reporting by Alexander Cornwell; Editing by Jan Harvey)

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Wall Street closes sharply higher on strong corporate earnings
Read More

Wall Street closes sharply higher on strong corporate earnings

Author of the article: U.S. stocks closed with sharp gains on Tuesday as more companies joined big banks in reporting earnings that beat forecasts, offering respite to investors worried about higher inflation and a tightening Fed denting the corporate bottomline. The S&P 500 gained 2.8%, the highest close since June 9. The tech-heavy Nasdaq Composite…
Iran executes British-Iranian accused of spying, UK condemns ‘barbaric’ act
Read More

Iran executes British-Iranian accused of spying, UK condemns ‘barbaric’ act

DUBAI/LONDON — Iran has executed a British-Iranian national who once served as its deputy defense minister, its judiciary said, defying calls from London and Washington for his release after he was handed the death sentence on charges of spying for Britain. Britain, which had declared the case against Alireza Akbari politically motivated, condemned the execution,…
Chilean peso leaps on central bank support, Brazil real slides
Read More

Chilean peso leaps on central bank support, Brazil real slides

Author of the article: Reuters Bansari Mayur Kamdar and Shreyashi Sanyal Published Dec 27, 2022  •  2 minute read Join the conversation Chile’s peso jumped on Tuesday after its central bank said it would extend its foreign exchange intervention program, while Financial Post Top Stories Sign up to receive the daily top stories from the…