MAX KINGSLEY-JONES / MUSCAT
Gulf carrier plots regional or long-haul expansion following fleet-restructuring effort
Oman Air will decide later this year the next stage of its expansion, with a plan to add widebody aircraft for long-haul services or small jets for regional operations under evaluation.
The majority privately owned airline completed the first stage of its reorganisation last year with the replacement of its mixed Airbus A310/Boeing 737-400 fleet with five 737-700/800s. It also operates four ATR 42s on short-haul services and flights to oil field strips. The Oman government, which owns a third of Gulf Air, also holds a 34% stake in Oman Air.
Oman Air chief executive Abdul Rahman Al Busaidy says the next phase could be approved this year for implementation in 2004. "We will present three alternatives to the board by 1 June: regional or long-haul expansion, or stay as we are," he says. "We have looked at 70-seat jets for high-frequency shuttle services in the region, but there are issues with access to certain countries which makes it difficult," says Abdul Rahman.
He adds that the regional jet fleet would need to reach a "critical mass", and with Gulf Air also evaluating regional jet operations, a tie-up such as a joint venture regional subsidiary or a joint purchase has been discussed. Gulf Air chief executive James Hogan confirms that it has held talks with Oman Air, but declines to elaborate on what is being discussed.
A lower-cost alternative to regional jets would be to acquire two 100-seat 737-600s, which would complement the 737 fleet, says Abdul Rahman. "Although the -600 would be less ideal than a dedicated 70-seater, the commonality would reduce the investment," he says.
The airline's alternative expansion could be into long-haul operations from its Muscat base. This has been under discussion for some time says Abdul Rahman, but has been modified now that Gulf Air's future direction is clearer following the unveiling of its recovery plan in December. "We would initially take three widebodies - either A330-200s or 767-300ERs - for services to Europe and Asia," he says.
The airline would concentrate European services on a single destination - probably London Heathrow - where it has slots and landing rights. Initial Asian destinations would be Bangkok, Jakarta and Kuala Lumpur, which would complement the Gulf Air network.
Source: Flight International
