Oman’s Ministry of Transport and Communications announced it has signed nine agreements worth a total USD2.16 billion for national infrastructure projects (Khaleej Times, 22-Mar-2011). USD1.7 billion of the total is for the construction of a new terminal at Muscat International Airport, which was awarded last year to a consortium comprised of Bechtel, Bahwan Engineering Company and INCA. The new terminal is expected to be completed in 38 months and have an annual capacity of 12 million passengers. A USD141 million project was awarded to Alawi for the construction of an air traffic control tower at Muscat. Other major contracts include the construction of a greenfield airport at Duqm, which was awarded to South Korea’s Hanjin Heavy Industries & Construction Company.
Oman signs USD2.16bn in infrastructure contracts
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Global airport construction review 1Q2017 – focus on Latin America and Africa
The annual airport construction overview report for 2017 focuses on Latin America and Africa, two regions that are often overlooked but which make their contribution to the global total of activity. One of them, Africa, is surprisingly strong in new airport construction, as long as the funding can be found, which is no easy task.
The total known global investment on airport projects continues to grow, and hovers close to the USD1 trillion mark; and with Asia Pacific the overall leader.
There are, however, anomalies, with some regions witnessing many projects but small investment figures, and vice versa. This report attempts to explain those anomalies while offering a breakdown of the biggest projects in each region.
Korean Air's dangerously high debt requires it to shore up confidence. Delta investment would help
Korean Air's strategic positioning is precarious as its main Asia-North America segment faces competition from competitors on both sides of the Pacific. The situation is worsened by financials hammered by the bankruptcy of the Korean Air subsidiary Hanjin Shipping.
Yet even before, Korean Air's debt neared 1,000% and available cash covers only a month of revenues. The market does not have confidence in Korean Air's attempt to fix its liquidity position, and the Cho family that established, and still manages, Korean Air faces sticky scandals. As Korea is in political and business upheaval, chaebol conglomerates are no longer sacred.
Delta Air Lines to the rescue? With strategy and financials battered, Korean Air views Delta's long sought partnership more favourably than it did a few years ago when Korean Air was on a high and seemingly did not need its pushy SkyTeam cousin. Delta may be offering to inject equity into Korean Air, and perhaps will not partner without equity involved.