(MENAFN- Muscat Daily) Oman Air plans to reduce its expenditure by more than RO100mn over the next three years. The move aims to make the airline self-reliant and profit-driven.
In a statement released on Monday Oman Air said it has launched an efficiency programme titled 'Shape and Size' to achieve substantial reductions in the airline's expenditure. 'The move is timed to coincide with the start of 2015 and the onset of new budgets for the year' it stated.
'The Shape and Size efficiency programme is targeting cost reductions across all activities undertaken by the national carrier of the Sultanate of Oman. None of those reductions will affect the airline's safety or the high standards of service offered to valued customers' the release added.
The airline said that a total reduction in expenditure of more than RO100mn should be achieved over the next three years bringing the company to an operational break-even point by the end of 2017. The airline however did not say how it is going to achieve the target.
Paul Gregorowitsch CEO of Oman Air said 'We are determined and committed to reshape Oman Air to become a more modern business-driven enterprise - one that does not solely rely on financial injections from the government of Oman.
'Oman Air contributed almost RO420mn to the Gross National Product of the sultanate during 2014. We are also aware that we have to contribute to the infrastructure of the country by serving domestic airports like Sohar.
'Furthermore and in line with the nation's Omanisation policy we are committed to developing for the future the educational and career potential of young Omanis. These important duties do not however constitute an excuse to run the airline as though it is a hobby.
'We all have to work hard and make sacrifices to become even better service-oriented but a self-supporting airline. We are in business to be customer and profit-driven.'
The airline will give more details about its plans at a special staff event on January 15.
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