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boiler
12th Dec 2006, 05:14
Just posted on the ATW website. Can't imagine Oman will stay with GF once the expansion takes place.


Oman Air to pursue long-haul expansion

Tuesday December 12, 2006

Oman Air management presented a five-year business plan that includes expansion into long-haul services to its board and the country's Ministry of National Economy, according to CEO Ziad Karim Al-Haremi.

"We're looking to develop a network spanning 42 destinations, of which 11 [would be] long-haul," he told ATWOnline in Kuwait recently, adding that the carrier is aiming to commence its first long-haul flights in fall 2008.

Oman Air plans to introduce three long-haul aircraft into its fleet in 2008 and an additional two in 2009. "We're seeking aircraft with 230/240-seat capacity, which leaves us initially only with the A330 and in a later stage maybe the 787 when it comes," noted Al-Haremi, who was appointed acting CEO in September 2005 and confirmed as permanent CEO in October. According to insiders, the carrier also is considering the 767-300ER or dash 400ER. Its first long-haul aircraft will be leased.

Al-Haremi said long-haul destinations could include London, Paris, Stockholm, Zurich, Milan, Munich, Frankfurt, Kuala Lumpur, Manila and Bangkok for outbound traffic. The airline, in which the Oman government holds a 34% stake, presently operates 10 aircraft: Three 737-700s, three dash 800s and four ATRs. It will phase out two ATRs by the end of 2008. It is scheduled to receive two new 737-800s in May 2007 and March 2008 and recently decided to take in an additional dash 800 next year. "We will lease the latter," he said. "We need it to support our rapid growth."

The carrier recently launched thrice-weekly service from its Muscat hub to Amman. In May it will commence flights to Damascus and Teheran and in June it will add two new points in India and increase frequencies to its existing Indian destinations under a new bilateral between India and Oman.

Oman Air carried 931,753 passengers in the first nine months of the year, up 10% over the previous year, with a load factor of 75%.

bluepacific
12th Dec 2006, 10:25
I personally think GF would be much better off if Bahrain was the only owning state! And if that means getting rid of those MCT nightstops... I'm sold!
How right you are Olbie.
It would be nice if the Omani Government put money into Oman Air for a change, interesting to see how long GF would last without the handouts.
BP

Desert Diner
12th Dec 2006, 13:11
Not sure how Muscat could support a standalone International operation.

GF on the other hand would be able to streamline its operation and improve its bottom line.

Fox3snapshot
12th Dec 2006, 13:14
OMA have mooted this before on a few occassions....we'll see....:rolleyes:

Firbolgs
12th Dec 2006, 13:20
For BAH to be able to manage GF it would need to be seriously restructured and downsized, just imagine what effect would that have on the BAH economy...the whole place just about lives off GF.

Cant personally see Oman having the need for a big long haul airline, but hey this is the Gulf!!:rolleyes:

boiler
12th Dec 2006, 13:26
I am personally not sure how WY is going to make this work. Aircraft cost a bundle these days and it will have to compete with the likes of QR and EY who have very low yields.

I do agree that one hub could be more efficient, the problem is going to be how to divide up the aircraft and bilaterals. BAH could lose a bundle of traffic rights and this would mean the airline will have to be downsized.

Icarus
12th Dec 2006, 14:11
BluePacific:
GF would last a very long time! Operating costs down immediately, salary base-line reduced and HDQ productivity up 50% the day after all the non-flying Omani nationals are repatriated.

BahrainLad
12th Dec 2006, 14:28
And in addition, the only problem with traffic rights was when AUH pulled out - MCT's are pretty meaningless in the current context.

Speedbrake Lever
12th Dec 2006, 15:30
Well

Lets put it this way Gf WY etc we are all just Air India, Pakistan,Bangladesh Mid East LTD

Oman is richer than Bahrain and has a population

Not much but far bigger than Bahrain

Yes MCT needs an overhaul as an airport

Sorry but i reckon if/when a split happens

GF will become a considerably smaller airline than it is now

The "BROTHERHOOD" ceased quite a while ago

I've done my quarter century thinK it might be time for a fresher sandpit

S.L. :D

Desert Diner
12th Dec 2006, 15:42
Bahrain may not be as rich as Oman (alhtough that may not be a true statement but never mind) but it does have something that Oman lacks: The causway linking it to the Eastern Province.

On any given GF flight I would venture to guess that the majority of the high yield PAX are Eastern Province residents (expats and locals).

I don't see much of a hit on their revenue if they consolidate all their operations to Bahrain (which is esentialy the case already).

Fox3snapshot
12th Dec 2006, 16:50
Sorry to burst your bubble mate but Bahrain is ranked 43rd highest GDP per capita over Oman coming in at 72nd in the CIA world fact book. Its just that the countries income has possibly been put to better use in Oman.

Like I say, this was all put to press years ago when I was in Oman and word was quite strong that it was to come to fruition, at least 5 years now down the track or more and another press statement with the same grand plan....:hmm:

Still, another airline expansion in the region won't do us any harm, I mean we are coping so well with the current levels of traffic and airline operations in the region, all thanks to the amazing foresight and planning of ME management........not! :*

busaidy222
13th Dec 2006, 21:03
All the best for both airlines

Panama Jack
14th Dec 2006, 10:57
I recon that the best thing that could happen for Gulf Air is if the WTO and the EU forced the issue on subsidies. Of all the airlines in the region, Gulf Air has some way to go, but compared to other local carriers (with the exception of LCC's) is probably the most advanced as far as operating like an independent, cost-effective airline operating under real-world economics.

World Trade Organization focuses on subsidies (http://www.wto.org/English/news_e/pres06_e/pr447_e.htm)

REACH-69
14th Dec 2006, 14:55
The sooner the spilt occurs between the two owners the better.At least the moaning will stop and the real thief will be disguised.The only thing i'll be sorry for ,is the cut down of jobs and the release of all the hard working employees.........This is only if the news is valid :ok:

fractional
14th Dec 2006, 16:34
... but compared to other local carriers (with the exception of LCC's) is probably the most advanced as far as operating like an independent, cost-effective airline operating under real-world economics.
, and The sooner the spilt occurs between the two owners the better...
You are both right. EK are not far away from the real world despite all is said about the government support and all the costless DNATA support, etc., etc..
Bahrain and Oman relevant air transport officials could still put their heads together if they were grown ups. BAH would become the hub and spoke for the West and MCT for the East. They could easily fly BAH-DOH-MCT-DOH-BAH or BAH-DXB-MCT-DXB-BAH and BAH-AUH-MCT-AUH-BAH with full traffic rights (with those multiple coupons removed at the gates) with the shorter range aircraft to feed the international flights in either direction and still ensuring the royals and vvips get their non-stop flights to London :confused:. But, I don't think this is going to happen unless GF and all the other players went fully private in an open skies policy across the region :ugh:. Not in my days here...
But then why wait? Split now :eek: since the mood is there. GF (and Bahrain) will lose initially. They'll have to downsize with the immediate consequences for staff, but they'll be able to gain the reigns of their own and keep a better cost-control and commercial vision. WY (and Oman) will gain much more. If unprepared for it, they will have teething problems endemic to the region.
It is unthinkable to have an airline like GF without a CEO for such a long time. GF may say they are not a rudderless aeroplane since they have an acting... CEO, but this has gone too long with this "acting".

Trader
14th Dec 2006, 18:16
Why would GF have to downsize - other than a lack if will/money from the Bahrain gov't!!!!????????

Redeploy the fleet to prfitable routes. (In fact they could still serve MCT, as a stop, enroute to the destinations they currently fly). If GF wants to be a niche player that's fine but they have to have a route network that will attract and keep pax - especially the high paying biz and first class traffic. That means adding at least 2 Chinese destinations and additional European routes (lots of choice - Amsterdam, Munich, Manchester, Milan, Copenhagen etc etc etc). IntraGulf is busy and they dropped good routes like Columbo and Casablanca (so that the competition could take them :bored: ) Some African routes are also busy.

I think GF could do with a fleet of 50 aircraft and do well. Hell, I think upwards of 60-70 could be done - deploying into enough markets to be a key niche player. Let the others expand to 200 a/c.

PS. How about code sharing with Air Lingus out of Dublin - some connect to New York with AL and GF could continue to Toronto. With the cross atlantic demand at a peak and a lack of seats.....................

midseal
14th Dec 2006, 21:13
A lack of seats on the Trans-atlantic, not the case, with thousands of flights making the cross every 24 hrs. What they need is a codeshare and not deployment of their own fleet. In my opnion that's how an Airline's network is built.
Codeshares don't come easy these days though. Northwest made it conditional that all airlines on codeshare with them have a sizeable e-ticketing set up by Jan'07 otherwise they won't renew. Watch the other carriers like AA follow suite. In the mideast this is an all new concept and emirates (56%, my guess is coz of transits) is the leader at the moment, Gulf Air falls far behind at less than 5% on their international routes and only 13% (majority staff related) on their intergulf structure. There is something to be said about e ticketing. People are not used to it out in the mideast. Its like asking someone to pay by credit card when all they have is cash. To some, they need the evidence that they purchased something and a printout just won't cut it.
Furthermore, Apparently GF was loosing about $1 million a month on their New york route when they had one, Flights were full but the price wasn't meeting their cost. Money in the cofines will determine what backbone strategy they might cough up when time comes. Something tells me there is not much of a backbone let alone a head at the pink palace. Some direction is much needed. With the engines at idle or out of fuel, there is not much altitude to gain before u get into a stall..............

Panama Jack
14th Dec 2006, 23:27
Well, whether Middle Easterners like it or not, they will enjoy not more than 12 more months of papertickets. IATA has mandated to all of it's members a target date of December 31, 2007, to go fully paperless airline tickets.

Icarus
15th Dec 2006, 05:22
Not quite. The end-2007 deadline is when IATA will no longer supply paper tickets (neutral stock) to agencies.

Panama Jack
15th Dec 2006, 07:10
OK, I didn't know that. . . in any case . . .

http://www.dmiblog.net/archives/the_end_is_near.jpg


I've personally always favored when airlines offer the option and pass along the cost to the consumer (possibly making even a small profit from it). For many, money talks and provides an incentive to change. Not unlike what banks have done, driving out consumers from their teller-staff and into the warm arms of ATM's and Internet Banking. :hmm:

Trader
15th Dec 2006, 08:07
Mid seal - agree - except tht from May to Oct you can't get a seat from Canada to Europe and if you can it is expensive. With some low cost moving into that market it may not be viable now.

I have no idea if the market is there (thats what they pay the strategy guys for) but withno need for transit pax to clear customs in Toronto and a large growth of American not wanting to travel on US airlines Toronto is a great market. But I agree - if you can put together a good alliance then have a strong network in Europe, ME, Asia and Africa - with 50 or so aircraft - and with a well run company (sic) you could survive.