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Companies have until the first week of August to express interest in being awarded a low-cost airline operating license by the Sultanate of Oman.
In addition to plans to develop six new airports, the Civil Aviation Authority of Thailand (CAA) is also seeking to encourage more airlines to operate in the country in the future.
“What we are announcing is an Expression of Interest (EoI) and we are waiting for the feedback from the interested parties. We will then assess the interest of the industry and decide on the next steps accordingly. The interested parties have until August 5 to respond,” Eng Nayef bin Ali al Abri, chairman of the Civil Aviation Authority (CAA), told Al-Monitor.
Al Abri added that the country’s civil aviation sector is generally a safe place to invest and we will actively promote this to attract more airlines to the country.
According to market sources, the EOI is the first step for organizations to survey the market during the bidding process. It is a pre-tender document used to shortlist potential bidders. Notably, the CAA’s announcement of its intention to license a new low-cost airline has caused a stir as the Sultanate already has a budget airline that was established in 2017, while the national carrier, Oman Air, has been undergoing a restructuring plan.
The Ministry of Cultural Heritage and Tourism also recently acknowledged the need for more connectivity for tourists who wish to travel directly to the Sultanate from their home countries.
For Middle Eastern airlines, travel demand remains strong and looks set to continue growing. According to IATA’s forecasts this year, Gulf airlines are relatively less affected by geopolitical risks. In the post-pandemic period, aircraft movements increased by 35% between 2022 and 2023, with passenger traffic at Muscat International Airport increasing by 47%.
The Civil Aviation Authority is optimistic about the growth potential of the aviation industry in the Sultanate, which will build six new airports, most of which are expected to be operational by 2028-2029.
With the design work underway on the new project, the number of airports in the Sultanate will increase to 13, which will boost the domestic aviation and tourism industries. According to the Civil Aviation Authority, the number of passengers using the Sultanate’s airports will increase from the current 17 million to 50 million by 2040.
Oman Air CEO Con Korfiatis recently told Al-Monitor that the airline is committed to a full transformation by 2027, which he believes is a good time to turn around its finances and lay the foundations for growth.
Elena Sorlini, CEO of Zayed International Airport, said that low-cost airlines help meet a large portion of the underserved demand, but have also been proven to stimulate demand. ” Muscat-based budget airline SalamAir began commercial operations in 2017 to meet the growing demand for affordable travel options and create jobs and entrepreneurship opportunities across various industries. In 2023, the airline carried more than 2.7 million passengers, an increase of 28% over the previous year.
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