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Oman Air Reports Positive Results At AGM, Increases Authorised Share Capital

Oman Air Reports Positive Results At AGM, Increases Authorised Share Capital
Oman Air Reports Positive Results At AGM, Increases
Authorised Share Capital
  • Oman Air’s revenues increase in 2013 by 10 per cent to RO381,709 million 
  • Passenger numbers up by 13 per cent to almost five million 
  • Capacity increased to 14.9 billion available seat kilometres 
  • Cargo handling up by 7 per cent to 119,785 tonnes 
  • 6.5 million meals served – an increase of 400,000 
  • Authorised share capital to be increased by OR 200 million to OR 700 million

At
a packed Annual General Meeting recently, Oman Air reported strong increases in
revenues and passenger numbers, supported by growth in seat capacity, cargo
operations and the number of passengers carried in 2013.
Oman
Air’s Chairman, His Excellency Darwish Bin Ismail Al
Balushi further announced a move to increase the authorised share capital of
the company by RO 200,000,000 (two hundred million Omani Rials), to a total of RO
700,000,000 (seven hundred Omani Rials).

Describing
Oman Air’s results, the Chairman went on to say that Oman Air had increased its
capacity to 14.9 billion available seat kilometres in
2013, enabling the airline to carry, with a total of 4,994,729,
nearly 13
per cent more passengers than in 2012.
In
parallel, Oman Air’s cargo operation handled 119,785 tonnes of cargo in 2013,
an increase of 7% on 2012.
These
results, together with those of all the airline’s other areas of operations,
contributed to an increase in Oman Air’s total revenues in 2013 of 10 per cent,
compared to 2012, to a total of RO 381,709,000.
His
Excellency Darwish Bin Ismail Al Balushi, Chairman
of Oman Air, commented:
“On behalf of the Board of Directors, it gives me
great pleasure to offer a warm welcome to the 32nd Annual General
Meeting and to present the Annual Report for the financial year ending 31st
December 2013.
“Over the course of 2013 we have enhanced our focus
on driving up quality standards, delivering greater efficiencies, increasing
the range of choices we offer, and preparing the way for our next stage of
major expansion. Throughout these processes, we have adhered to two key
principles which underpin every area of our work: to ensure that every customer
enjoys the best possible passenger experience, and to continue our determined
progress towards profitability. 
“This year’s results show what holding those
principles close can achieve.
“The
significant 10 per cent increase in our revenues and the very positive growth
of 13 per cent in our passenger numbers demonstrate that demand for Oman Air’s
award-winning services continues to grow, whilst the 15% increase in the
tonnage of cargo handled by Oman Air illustrates the wisdom of our continued
investment in this area of operations.
“Although
Oman Air’s loss increased in 2013 by 16 per cent to RO 113.3435 million, the company’s direct and indirect contribution to
the Omani economy over the same period was, according to studies we have
commissioned, as much as OR 400 million, which more than offsets Oman Air’s financial
debt to the nation.
“The loss was as a result of our continued investment
in new aircraft. The arrival later in 2014 of the first of the 20 new aircraft
we currently have on order will signal the start of a major new phase in Oman
Air’s growth and an increase in our capacity to tackle Oman Air’s deficit and
move towards profitability.
“In order to further assist this progress, I am
pleased to announce an increase of two hundred million Omani Rials to Oman
Air’s authorised share capital, taking the total to seven hundred million Omani
Rials. This sum will be divided into seven hundred million shares, each to the
value of one Omani Rial and the Articles of Association will be amended accordingly.”
Outlining Oman Air’s achievements over the course
of 2013, His Excellency said that the new Embraer E175 and Boeing B737 aircraft
which were added to Oman Air’s fleet in 2012 had increased the flexibility and
capacity of Oman Air’s fleet, enabling the carrier to increase frequencies to a
range of destinations in India and Pakistan, as well as between Muscat and
Salalah. They also allowed the launch new services between Salalah and Jeddah,
and between Muscat and Madinah. The Chairman also noted that the expansion of
international services from Salalah, together with more frequencies between
Oman’s second city and its capital, had been warmly welcomed by customers and
had once again confirmed Salalah as a vital element within Oman Air’s network.
The successful increases achieved by Oman Air’s
passenger services were, His Excellency added, matched by those of its cargo
operations, which benefited from the enhanced
capacity offered by the exclusive Block Space
Agreement signed in March 2013 with DHL for utilising the company’s capacity
in both directions of its air cargo operation between
Muscat and Dubai.
At
present, Oman Air is engaged in a range of diverse activities, including
scheduled airline services, air charter services, ground handling, cargo
handling, aircraft catering services, hospitality and duty free business. His
Excellency further informed the AGM that, since Oman Air’s foundation 20 years
ago, these activities have grown significantly and, as such, may be better
managed as independent businesses with dedicated management focus. It is
therefore intended that these businesses should be spun off into separate legal
entities which will enhance efficiencies and effectiveness. The plan will be
implemented in a gradual and sustainable manner, and will begin
with the ground handling and cargo handling businesses. His Excellency further
emphasised that even as separate entities, these businesses will continue to
operate within a group, so that they could take advantage of the synergies
among themselves and with the core Oman Air business. Final decisions and
related timescales will be announced following consultations with the Government
of Oman.
Returning to address Oman Air’s achievements in
2013, satisfaction was expressed with the investment Oman Air made in 2013 in
its workforce and, reflecting the airline’s role as the Sultanate of Oman’s
national carrier, in its renewed commitment to improving employment and
advancement opportunities for Omani citizens. Since the start of 2013, 38 Omani candidates have
joined Commercial Pilot’s License, Airline Transport Pilot’s License, B737 type
rating and ATR type rating courses across the Middle East and Europe. Many of
those trainees have taken up Oman Air’s offer to Omani citizens of places on a
scholarship programme that assists with the costs of training to become pilots,
and by the end of December 2013, 33 Omani trainees had joined Oman Air as
pilots.

These new employees have helped to ensure that over
64 per cent of Oman Air’s total workforce now comprises Omani citizens and, in
accordance with His Majesty Sultan Qaboos’s decree, Oman Air continues to
pursue the country’s Omanisation policy with vigour. The Chairman added that he
looked forward to seeing even more Omanis employed at every level of the
company over the coming year.

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