Oman Aviation Group tightens its purse strings to reach break even

Muscat: A total of one million gallons of fuel was saved by the Oman Aviation Group (OAG) through 13 initiatives during the first quarter of this year.
The move is part of the effort to reach the 2024 break-even point for Oman’s national carrier .
Amid the rise in crude prices, Oman Air has considerably adjusted its non-oil expenditures to boost savings.
Fuel cost
While OMR54 million was budgeted for the fuel, the real fuel cost reached OMR69 million in the first quarter of this year, according to the OAG.
The service contracts of the airline network amounting to OMR7.2 million were saved during the same period. The group expects this figure to reach OMR10 million by the end of this year.
It also aims to control the general expenditures of Oman Airports and raise its revenues.
The internal tender committee in the three companies namely, Oman Airport, Oman Air and Oman Aviation Service, committees were unified under the group. The iniatives aim to reduce the spending through unifiying technical licencing, insurance, mentainance, purchase and legal services. A joint service centre is likely to be established to unify the supportive services for the group’s companies.