Oman Air to buy 15 Dreamliners or A350s

National carrier aims to expand fleet and network with major order for widebody jets next year but says it will not end losses until the end of 2018.

An Oman Air plane takes off at Abu Dhabi International Airport. The carrier plans to expand its fleet. Delores Johnson / The National

Oman Air plans to move ahead with a multibillion-dollar order for wide-body jets early next year even though it will not now break even in 2017 as the low oil price curbs growth in the Arabian Gulf.

The carrier is now aiming to end losses by the end of next year, contingent on demand not deteriorating further, said the chief executive Paul Gregorowitsch. While the carrier will also delay plans to expand to a fleet of 70 aircraft and 75 destinations to 2023 from 2020, it still plans to order 15 new wide-body jets needed to replace older planes and add capacity, he said.

Even with expansion more tentative, Oman Air has still added Nairobi and Manchester to its network this year, according to Mr Gregorowitsch. The inaugural Manchester flight arrived in the northern English city on May 1.

Further discussions will be held with manufacturers and leasing firms next week as Oman Air seeks to agree terms to take either Airbus’ A350 or the Boeing 787-9. The US model has a slight advantage because the carrier already operates six Dreamliners, with the tally set to increase to 10 in 2018.

Oman Air will also go ahead with deliveries of the 20 Boeing 737 Max planes it has on order as it leases out some of its current narrow-body fleet to better match seats to demand. While the carrier is continuing to operate 10 Airbus A330s, which form the core of its wide-body operations, those planes will be retired to make way for the new aircraft. Mr Gregorowitsch said the upgraded A330neo is not of interest.

While Oman Air remains unprofitable, the state-owned carrier is no longer getting government funding, having received US$50 million last year and $300m in 2014 when Mr Gregorowitsch took over. The loss per passenger was cut by $10 last year and should decrease again in 2017, he said.

Peshawar in Afghanistan could follow before the end of 2017, and addition next year include Hong Kong, Seoul and a city in South Africa, he said.

More routes to mainland China are on hold after the company began flying to Guangzhou in 2016. It has shelved plans for its own services to Turkey, relying instead on an agreement with Turkish Airlines.

Oman Air’s German flights are now operated as code-shares with Lufthansa and the European major is among candidates for a joint-venture partnership, Mr Gregorowitsch said.

* Reuters

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