OMAN Air reported a loss of RO110m (US$285.6m) during 2011 on the back of a 38 per cent increase in fuel, which cost the company RO37m ($96m).
However, freight tonnage grew 13 per cent, with a knock-on revenues increase of 28 per cent – RO4.1m ($10.6m).
Despite the overall losses, Darwish bin Ismail bin Ali Al Balushi, the government’s finance minister and chairman of Oman Air, says the losses were “part of the growth model for the airline and represent investment by the government to build Oman Air to a size where it [will] be a profitable entity”.
He adds that investment in the airline would contribute to the non-oil economic growth and tourism for the country, creating jobs for pilot, engineers and airport operations.
In a pro-aviation decision that must be the envy of persecuted European airlines, he confirms: “The government of Oman will continue to support the expansion strategy for Oman Air.”
Chief executive officer, Peter Hill, has stepped down to be replaced by Wayne Pearce. Pearce has served with both Qantas and Etihad.
