Oman Air chairman Darwish bin Ismail Al Balushi said the airline plans to launch a LCC and cargo airline and expand its network to improve profitability. As quoted by Times Of Oman, Gulf News and Oman Observer, Mr Al Balushi said, “We will be initiating a low-cost airline. We have received approval in principle from the government, and we are working hard to conduct feasibility studies, which we will submit to obtain final approval. We think these are very promising activities.” Mr Al Balushi also said the airline intends to increase its local market share and the proposed LCC is likely to provide domestic and regional services. Mr Al Balushi said Oman Air expects to take delivery of six Boeing 787s, 11 737s and three A330s in next five years.
Oman Air to launch LCC, cargo airline and expand network
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The CAPA airline fleet quiz: 15 challenging questions. CAPA Summit Singapore 2/3 March
Test your knowledge of the global aircraft fleet with this CAPA Quiz. If you have access to the comprehensive CAPA Fleet Database, it should be a breeeeze.
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Iberia: capacity stabilises. IAG focuses growth on Level, its new long haul LCC
Iberia's 'Plan de Futuro' restructuring restored its profitability in 2014 and it achieved its third straight positive operating result in 2016. Its owner, IAG, rewarded it with a return to capacity growth after years of cuts and new aircraft orders. Iberia's improved returns, and a drop in performance by sister airline Vueling, lifted it from the bottom of the IAG pack in 2016.
Nevertheless, Iberia is still not earning its cost of capital and is some way short of IAG's even higher target return. Iberia's capacity growth is slowing, as it concentrates more on load factor gains in a market characterised by overcapacity. Seat numbers are levelling off in its key long haul market of Latin America, although there is some growth in North America and the 2016 launches of Shanghai and Tokyo routes will feed through to growth in NE Asia this year. In Europe, Iberia is also maintaining flat capacity in the face of rapid LCC expansion.
The second phase of 'Plan de Futuro' targets further margin expansion, but Iberia may have a bigger challenge taking the next step upwards than it did to restore profits. Meanwhile, IAG's growth focus has shifted to its new long haul low cost operator Level.