Oman Aviation Group has released a statement refuting media reports that a new airline company is being established in the Sultanate.

In a statement through its official Twitter account, the Group said, “Oman Aviation Group denies reports regarding the establishment of a new airline company. The group is working on developing a promotional and investment programme called ‘Oman Link’, which aims to promote and connect regional airports in the Sultanate.”

The statement follows a detailed media report that quoted sources as saying that the Sultanate was considering setting up a new regional airline to take over domestic operations from Oman Air.  The report also added that the Group was looking at proposals on a feasibility study report for the same and these were to be submitted by next month.

Credit: Oman Aviation Group/Twitter

Oman Aviation Group, was set up in 2018 and includes Oman Air, Oman Airports and Oman Aviation Services. Currently, Oman Air is the nation’s major airline along with budget airline Salam Air, which was launched in 2017.

With the nation looking to diversify from an oil-based economy, Oman has been focusing on tourism and has, in the process, been restructuring its aviation sector in recent years to meet growing demands domestically as well as internationally and with the objective to become a major hub for international airlines.

In a statement made in September, Amien Al Hosni, CEO – Oman Airports Management Company (OAMC) – said that Sultanate’s aviation sector is expected to contribute over OMR1.4bn to the nation’s Gross Domestic Product (GDP) by 2040.

He added that the aviation sector is an enabler and an indirect contributor to the country’s economy, compared to oil and gas. As of now, 35 global carriers fly through Oman’s airports, with the number growing at the rate of 2-3 airlines per year.