In a sweeping move to streamline operations and enhance financial stability, Oman Air has announced the reduction of 1,000 jobs, including 500 expatriate positions. This restructuring initiative aims to align the airline’s staffing model with international industry standards and set the carrier on a more sustainable course.
The decision, announced by Eng. Saeed bin Hamoud Al Maawali, Minister of Transport, Communications and Information Technology and Chairman of Oman Air and Oman Airports, reflects a comprehensive strategy to optimize the airline’s workforce and operational efficiency.
Overstaffing Challenges Led to Restructuring
Prior to the restructuring, Oman Air employed approximately 4,300 workers, significantly higher than the industry benchmark of 2,700 employees for airlines with a comparable fleet size, according to Al Maawali.
He emphasized that 45% of Oman Air’s workforce were classified as non-core employees — a figure far exceeding regional and global aviation norms. “The imbalance in workforce composition necessitated immediate corrective action to ensure competitiveness and financial sustainability,” Al Maawali explained.
Job Cuts Include Omanis and Expats
Of the total 1,000 jobs eliminated, 400 were held by Omani nationals. To mitigate the impact, Oman Air offered a voluntary retirement program, which was accepted by 310 employees.
Additionally, several staff members were offered alternative roles at the same salary levels but with reduced benefits. This dual approach allowed the airline to reduce redundancy while maintaining a level of income stability for affected employees.
Al Maawali reiterated that the restructuring was conducted with sensitivity, ensuring that those impacted were offered fair and transparent options.
No Direct Aircraft Sale to Qatar Airways
Responding to media reports suggesting Oman Air sold aircraft directly to Qatar Airways, Al Maawali clarified that no direct transaction occurred between the two airlines.
He explained that the aircraft were older models no longer in active service and were sold through a public auction. “The sale process was open and transparent, adhering to best practices to maximize value for Oman Air,” he noted.
The clarification comes amid heightened regional scrutiny over asset transfers between Gulf carriers, particularly as airlines reposition themselves post-pandemic and amid rising market competition.
Click here to read more on World business news.
Future Plans for Old Muscat Airport Unveiled
In a separate update, the Acting CEO of Oman Airports shared exciting development plans for the old Muscat International Airport site.
Tenders are being floated to assess the land and create investment opportunities, including proposals for infrastructure development and a new venture to support fish export industries.
“This redevelopment is part of a broader strategy to diversify Oman’s economy and optimize underutilized assets,” the Acting CEO stated, highlighting Oman’s ongoing efforts to stimulate non-oil sectors.
The airport site is seen as a potential hub for new businesses, with plans expected to attract local and international investors in the coming months.
Commitment to Efficiency and Sustainability
Oman Air’s latest actions underscore a broader national effort to strengthen government-owned enterprises by enhancing operational efficiencies and moving toward long-term financial sustainability.
Al Maawali emphasized that these changes, while difficult, were necessary to build a “leaner, stronger Oman Air” capable of competing effectively in the regional and global aviation markets.
Moreover, these restructuring measures are consistent with Oman’s Vision 2040 goals, which prioritize economic diversification, competitiveness, and increased private-sector participation.
Oman Air’s strategic decision to cut 1,000 jobs marks a significant shift towards operational efficiency and financial health. By aligning staffing levels with industry norms and exploring new investment opportunities, Oman Air positions itself for a more sustainable future amid a changing aviation landscape. The airline’s focus now firmly rests on innovation, efficiency, and long-term growth.
For latest business news update follow 10X Times.com.
