Oman Air to Launch First New Route in Five Years
Oman Air is set to launch its first new route in five years as part of a strategic effort to maximize the use of its narrowbody fleet and transform its operations for long-term sustainability. The airline’s CEO, Con Korfiatis, announced plans to introduce a direct service between Muscat and Rome, beginning December 20, 2024. This new route represents a pivotal moment in Oman Air’s growth strategy, which aims to support both Oman’s Vision 2040 tourism goals and the airline’s financial recovery.
Speaking at Routes World 2024 in Bahrain, Korfiatis outlined the airline’s vision to achieve economic self-sufficiency by 2027, noting that Oman Air’s financial performance has been unsustainable in recent years. “It’s a 30-plus-year-old airline which hasn’t transformed,” Korfiatis explained. “We need to justify our existence, to earn the right to continue being the flag carrier.”
To address these financial challenges, Oman Air has embarked on a comprehensive restructuring plan. This process includes a reduction in its network and a simplification of its fleet. Earlier in 2024, the airline cut its network capacity by 30%, eliminating unprofitable routes that no longer justified operation. Korfiatis acknowledged that these cuts were necessary due to the significant financial losses sustained on these routes. “The amount of money we were losing on routes was just too high,” he said.
Despite the network reductions, Oman Air’s long-term strategy is not to downsize permanently. Instead, Korfiatis emphasized that the restructuring process is a temporary measure aimed at creating a solid foundation for future growth. “The end game is to shrink, fix the foundations, and then go back to a growth agenda,” he added.
The launch of the new Muscat-Rome route is a key component of this strategy. The new service will operate four times per week and will complement Oman Air’s existing flights to Milan. Korfiatis highlighted the strong potential for both outbound travel from Oman and inbound tourism from Italy, particularly during peak travel seasons.
In addition to expanding its network, Oman Air is optimizing its fleet to enhance operational efficiency. By early 2025, the airline plans to operate exclusively with Boeing 787-9 aircraft for widebody services, while its narrowbody operations will transition to a fleet of Boeing 737-8 aircraft by mid-2026. This fleet modernization is expected to play a crucial role in the airline’s efforts to improve profitability and reduce operational costs.
Korfiatis also discussed the airline’s evolving business model. Historically, Oman Air has relied heavily on transit traffic. However, as part of its restructuring, the airline aims to strike a 50/50 balance between connecting flights and point-to-point traffic. This shift is aligned with Oman’s broader tourism strategy, which focuses on boosting inbound tourism while maintaining its role as a regional transit hub.
As Oman Air continues its restructuring journey, Korfiatis acknowledged that the process is a long-term endeavor. “We’re running a marathon, not a sprint,” he said, emphasizing the need for patience and perseverance. Significant milestones have already been reached, and Oman Air is steadily progressing towards its goal of becoming a financially stable and efficient airline by 2027.
This renewed focus on efficiency, fleet optimization, and network growth positions Oman Air to play a vital role in supporting Oman’s tourism industry while ensuring its long-term viability as the nation’s flag carrier.
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