Oman Air (WY, Muscat) owner, the government of Oman, has resurrected plans to establish a budget carrier, this time as a Public-Private Partnership (PPP). Speaking after Oman Air's inaugural flight to the newly opened Sohar airport located 220km northwest of Muscat, Oman's Minister of Transport and Communications, Dr Ahmed bin Mohammed bin Salim Al Futaisi, said a study was already under way though it was still to early to give any exact time frames.
"We are conducting a study to introduce a new airline, like budget airline," the Minister was quoted by the Times of Oman. "We will announce it through a tender."
Muscat has also commenced a study on the impact of Open Skies treaties on the country's aviation industry. Despite extensive investment into its aviation infrastructure, Oman has yet to tap the success its neighbours the United Arab Emirates and Qatar have enjoyed through Emirates, Etihad Airways (EY, Abu Dhabi International), and Qatar Airways (QR, Doha Hamad International).
In October, Oman Air's new Chief Executive Officer Paul Gregorowitsch scrubbed the carrier's plans to establish its own budget subsidiary claiming any such operation would inevitably cannibalize Oman Air's existing traffic.
Industry analysts, however, have pointed to the success of Emirates (EK, Dubai International) and flydubai (FZ, Dubai International) - two completely different entities that have managed to coexist in areas where their markets overlap such as India, Pakistan, the Middle East, the CIS, and now Africa.
