Oman rejects low cost carrier plans says local media

The Times of Oman has reported that Oman Air is not planning to set up a low cost or budget airline.
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In an interview with the airline's chief executive officer, Paul Gregorowitsch, the paper scotched reports that Oman may float a low cost carrier to challenge regional budget airlines like flydubai and Air Arabia.
"We don't have any intention to set up a low cost carrier," he said.
Gregorowitsch said if Oman Air wants to grow a low cost carrier, it has to secure licences and permission to fly to several destinations in other countries.
"This can be taken from the existing carrier (Oman Air), which at the end of the day may not make any business sense," the Oman Air CEO explained.
Analyst Saj Ahmad said: “Oman Air already enjoys the benefits of operating a very young and modern fleet of narrowbody and widebody jets as well as having one of the most competitive cost basis in the GCC region. Its little surprise then that the Oman Air team see little value in creating a standalone low cost airline that would, in effect, siphon off traffic from Oman Air.
“As it is, Oman is one of the few GCC/Middle East countries that still has strong demand for premium products outside of those from Emirates, Etihad and Qatar Airways. Oman Air is gearing up to induct more Airbus A330s as well as 787-8s and 787-9s to expand its long haul operations while slashing costs. It is also looking at the 737MAX as a prime candidate to mix in and replace the 737-700 and 737-800 fleet in operation today and their commonality seems to have an edge over the rival A320neo offering.
‘It is more likely that Oman Air will look to offer more attractive fares rather than break the mould of its current operations and have a low cost arm that bleeds away its traffic and revenue. Oman Air is acutely aware that it can tap into the low cost market without having a dedicated entity primed for it.’