Oman Air finding its niche

Oman Air realizes that it is better to remain a "unique boutique airline, rather than to compete against Emirates and company," CEO Peter Hill told ATWOnline at ITB Berlin.

"What we are looking at is to develop Oman and to serve the country well for business and tourism," he said. The carrier cannot match the big hubs in the region and will focus instead on point-to-point traffic.

"Of course some passengers will use Muscat to change aircraft, but we see this as a byproduct," Hill said, adding that by positioning itself as a boutique airline it will attract passengers looking for quality onboard service. "When you are at the back of the queue [of Middle East airlines], you can offer more than what the others do," he said, arguing that WY's size and flexibility will make it easier to maintain high standards. "I believe Oman Air will never operate more than 45-50 aircraft, a mix of narrow and widebodies, growing in markets like Africa, Europe and Asia," he said.

WY ordered five E-175s last fall and expects to operate the aircraft beginning in 2011 on thinner routes as well as to new domestic destinations like Sohar, Ras Al Hadd, Duqm and Adam (ATWOnline, Nov. 18, 2009). It currently operates four A330s, 15 737NGs and two ATR 42s.

By 2014, Hill said, Oman Air should be profitable and he did not rule out a privatization in the following two years. The government currently holds 98% of the airline. "The owners are very demanding that Oman Air Group, which includes catering, hotels, airport handling and MRO, make aprofit," he said.