Revenue: Revenues increased by RO 57.123 million or 1% over the previous year.
Regular flights: Revenue from regular flights from 2005 to 2010 increased to 258.9 million RO in 2011, an increase of 58.4 million RO or 29%. During the year, Oman Air operated the Munich and Zanzibar flights.
The ASK capacity increased by 21% and the usage rate increased by 22%, which is higher than the capacity increase, which improved the average seat factor from 72.7% in 2010 to 72%. The average net passenger income increased by 6% in 2011. Despite the growing competition from the major airlines, Oman Air has enhanced its presence on most of its routes by focusing on providing sufficient number of flights, accuracy in take-off and landing times, reduced waiting times, convenient flight schedules and excellent services for customers within the company.
Aircraft leasing services: Revenue from the leasing of jet aircraft to PDO and helicopters to Occidental amounted to 9.125 million RO during the year.
Handling Charges: The handling income of other airlines this year amounted to SR 13.512 million compared to the previous year, which amounted to 371,000 million RO, a decrease of 13.883 million RO. This is mainly due to the following reasons: Firstly, air travel of non-Omani airlines declined from 18,558 to 16,727 flights. Secondly, the volume of large-scale aircraft decreased from 7.379 to 5,985, while small aircraft increased from 26,396 to 28,570 flights.
The Company’s policy in managing capital is to protect the Company’s ability to continue in accordance with the principle of continuity and the preservation of shareholders’ equity. Management policy is to maintain a solid capital base in order to maintain creditors and market confidence and to support the future development of business. The company’s capital requirements are determined by the Commercial Companies Law of 1974 and its amendments.
Following are the names of the shareholders of the company who own the percentage and number of shares they own: The Government of the Sultanate of Oman, where the shareholder owns 99.8% of the company.
Liquidity risk is the inability of the Company to meet its financial liabilities when due. The Company’s approach to liquidity management is to ensure that it has sufficient liquidity, to the extent possible, to meet its obligations when due, either on normal or strict terms, without incurring an unacceptable loss or risk of misrepresenting the Company.
Similarly, the Company ensures that it receives sufficient cash on demand to meet potential operating expenses including the service of financial liabilities. This excludes the potential impact of circumstances that cannot reasonably be expected, such as: natural disasters. In addition, the Company maintains sufficient credit facilities.
Event of unexpected appearance
The Company faces the following risks arising from the use of financial instruments: credit risk, liquidity risk and market risk.
The Company’s activities are exposed to a variety of financial risks: market risk, credit risk and liquidity risk. The company’s overall risk management program focuses on the unpredictability of financial market volatility and attempts to minimize the adverse impact on the company’s financial performance.
Risk management is managed by the Company’s management in accordance with policies approved by the Board of Directors.
Credit risk: Credit risk is the risk that the Company will incur a financial loss if the customer or counterparty to a financial instrument fails to meet its contractual obligations and arises mainly from receivables.
The Company’s exposure to credit risk is mainly affected by the individual characteristics of each customer. Due to the nature of its operational activities, the company deals with a large number of customers in many countries of the world.
The Company has established credit policies and procedures that are appropriate and appropriate to the nature and size of the receivables.
The Company has established credit policies and procedures that are appropriate and appropriate to the nature and size of receivables. For customer credit risk control purposes, customers are classified into the following categories based on their credit characteristics: Airlines and chartered flights, travel agents, government sector clients and other clients.
Potential risks relating to receivables are carried at their carrying amounts where the management regularly reviews those unquoted balances. The Company makes an allowance for impairment that represents its estimate of losses incurred in respect of receivables and other receivables. The main components of these losses are specific loss components related to individual risks.
Oman Air’s commitment to contributing towards the homeland and its citizens is a continuous process that will bear fruit and we look forward to Oman Air making further appointments in the near future, which will contribute to advancing the process of omanization. This is as close as possible to returning to the country that hosts the operations and sponsors our successes and supports the investment plans.
In conclusion, we conclude from this paper that Oman Air, the national carrier of the Sultanate of Oman, has the primary objective of providing safe and distinctive commercial air transport services to passengers and goods transported by air cargo, as well as other air navigation services and to the status of Oman Air as an entity Strong Commercial.
It is true that the air fleet flies to 41 destinations around the world, but it is also true that we are linked to only one country. Another fact is that business is an integral part of the welfare and development of our beloved country, Oman. The company seeks to be the best airline can be, working on the development of the enterprise, and grow in the right direction thanks to generous government support. As a service provider for an important and supportive portal as an international organization, we are citizens playing a very important role in promoting Oman and achieving national interest in many areas such as tourism promotion, international business promotion, attracting foreign direct investment to Oman. The strong relationship between the good government and Oman Air is a great example of solidarity, cooperation and coordination in the best sense.
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