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Oman's Transport Minister announces a study to review introduction of a new private budget airline

Analysis

Oman's Minister of Transport and Communications Dr Ahmed bin Mohammed bin Salim Al Futaisi announced in early Nov-2014 that Oman may open its market to a private LCC. This follows flag carrier Oman Air's decision not to establish its own LCC subsidiary.

Speaking to the Times of Oman newspaper Dr Al Futaisi announced that the government is "conducting a study to introduce a new airline, like budget airline".

The Minister's intention is that at least one new operating licence, and possibly more, would be awarded to a private operator through a tender process. A similar approach has already been tried in Saudi Arabia, in both rounds of its liberalisation efforts, with mixed success.

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