Muscat to dissolve the Oman Aviation Group

Oman’s government has announced the dissolution of the Oman Aviation Group (OAG) with its assets and tasks to be redistributed among Oman Air (WY, Muscat) and the Oman Airports Management Company (OAMC). Although Omani Finance Minister Sultan bin Salem Al Habsi did not disclose the reason for the move, he did tell the Oman News Agency that the sultanate’s sovereign wealth fund, the Oman Investment Authority (OIA), had decided to dissolve both the Oman Aviation Group and TRANSOM and restore the situation to what it was before OAG was incorporated in 2018, namely two companies existing side by side: Oman Air and OAMC. “The procedures for dissolving the two companies will not affect their shareholders’ obligations towards them, given the associated change will be in the form of restructuring only,” the minister added. Al Habsi said Oman expects a budget deficit of about OMR2.2 billion rials (USD5.7 billion) in 2021 and plans to borrow from domestic and international markets to help plug the gap. Founded in 2018 by the Omani Ministry of Transport and Communications, OAG also oversaw the Omani Aviation Services Company later rebranded as TRANSOM. OAG was tasked with consolidating all of the Sultanate’s aviation investments under one umbrella organisation to improve each of the companies’ strategic, financial, and economic outlooks.