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Sultanate of Oman

Ministry of higher education

Gulf College

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Oman Airlines

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This assignment paper submitted in partial fulfillment of the requirement for academic purposes in Gulf College 2017. I declare that all of this work is my own. It has not submitted before for any other degree, part of degree or examination at this college or others.


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Aviation has always been the dream of man since ancient times, where he has made many experiments in this regard; he worked on the design and manufacture of some types of kites, and tried to enlarge the size of these aircraft in order to carry things with them and fly. Man also tried to fly himself and perhaps the attempt of Abbas ibn Firnas one of the most famous attempts in this area. Man was able to fly in the late 19th century, but in the twentieth century aviation has developed unmatched, as it has become a milestone for this century, and aviation is still evolving through the development of aircraft and various aviation services. Aviation was able to enter all areas of life and the widest doors, because of the great ease, and the high efficiency is unparalleled in providing connectivity between the different cities of the world.

Oman Air, the national carrier of the Sultanate of Oman, is a joint ventures company with the primary objective of providing safe and distinctive commercial air transport services for both passengers and goods transported by air cargo, as well as other air navigation services. Oman Air is recognized as a strong commercial entity and is highly respected for its professional policy. Oman Air is highly recommended for its high-quality, punctuality and quality of service.

Oman Air is a member of the Arab Organization for Air Transport. As of March 1, 2010, Oman Air has become the world\'s first airline to offer mobile phone service, internet services and Wi-Fi on specified routes.

Since the launch of the company\'s services at the regional level, Oman Air, as the national carrier of the Sultanate of Oman, has seen an increasing growth rate. The company is owned by the Government of Oman. Oman Air is headquartered in the Omani capital Muscat, Muscat International Airport. The company has a highly efficient staff of highly trained staff, who has contributed to their work and hard work in building the company\'s distinctive identity and expanding the customer base that we excel in.

The beginnings

In 2011, Oman Air won the Golden Award for the \"General Airline\" in France Laurie du Golden Tour business.

Oman International Services (OIC) was founded in 1970. And became a civil aircraft and ground handling services at the airport of Beit Falaj. In 1972, OIS moved its operations to the new building at Seeb International Airport. The company was established during the light aircraft division of Gulf Air in 1977, prior to the establishment of the aeronautical engineering department in the same year. The rapid expansion of Oman\'s civil aviation industry, led by the Organization of the Islamic Conference (OIC), has been building many facilities.

In 1981, Oman Aviation Services Company became a joint stock company. The OAS also purchased 13 aircraft from Gulf Air, allowing the company to replace the turbochargers in Focker 27-600 with a 500-series. The following year, Oman Aviation Services Joint Services Company, together with Gulf Air, started to Salalah. From 1983 to 1993, the company purchased new equipment, including the Cessna citation model, and new facilities to help it improve its services.

The new airline 1993, Oman Air has been targeting the Boeing 737-800 with primary colors of blue. In 1993, Oman Air was established. The airline\'s first flight was made in March, when the Boeing 737-300 leased from Ansett flew all over the world to AWAS from Muscat to Salalah. In July of the same year, the company\'s first international flight to Dubai was launched, and also using a Boeing 737-300.

He soon followed trips to other destinations, starting with the services of Thiruvananthapuram in November, Kuwait and Karachi in January 1994 and Colombo in October. In 1995, there were two Airbus (A320). From 1995 to 1997, it began its services to Mumbai, Dhaka, Abu Dhabi, Doha and Chennai. In October 1998, Oman Air has been recognized in the trade group of the international aviation industry with the International Air Transport Association (IATA). By the end of the following year, Jawadar and Peshawar in Jeddah and Al Ain were included in the breadth of its network of lines to the company.

In March 2007, Oman\'s government was re-capitalized, which saw the governmentgrowth its stake in the airline from about 33 to 80 percent. He also announced that Oman Air would reassess its strategic plans with long-term market access.

This culminated in the announcement by the government in May 2007 that it would withdraw from Gulf Air, and instead focus on the development of Oman Air. Oman Air began long distance services on 26 November 2007 by launching flights to Bangkok and London. With the arrival of its new aircraft Airbus A330- 200/300 and other long lines scheduled. As of November 2010, the Omani government holds a 99.8% stake in the airline.

Board of Directors

1. HE Dr. Darwish bin Ismail Al Balushi / Chairman of Board of Directors

-  Minister in Charge of Finance    

2. His Excellency Sheikh Saeed bin Ali Al-Mashali / Deputy Chairman of the Board

-  Undersecretary of the Ministry of Transport and Communications for Civil    Aviation Affairs    

3. Major General Salem bin Musallam Qatoon Al-Muhtarem / Member of the Board of Directors

 -   Assistant Inspector General of Police and Customs        

4. HE Mohsen Bin Khamis Al Balushi / Member of the Board of Directors

  -   Advisor to the Ministry of Commerce and Industry

5. HE Maitha Bint Saif Al Mahroqiah Respectful / Member of the Board of Directors

   -  Deputy Minister of Tourism

6. Dr. Mohamed Ali Al - Barwani / Member of the Board of Directors

    -  Chairman of Mohammed Al Barwani Holding Company

7. Sheikh Nasser bin Suleiman Al Harthy / Member of the Board of Directors

     -  Director of Financial Investment Department, Ministry of Finance            

Characteristics of Oman Air

Oman Air operates through the symbol agreements with many airlines from around the world. Oman Air also enjoys cooperation and partnership with a select group of airlines. The company has implemented the Sindbad Traveler Program with its partners in the joint code agreements. Today, Oman Air has been able to create a special position thanks to its high standard of hospitality and frequent flights to many destinations, locally and internationally. Today, Oman Air is the first choice for both business and leisure travelers. Air Oman is a meeting place for people of different nationalities and cultures. Oman Air is also keen to welcome every guest of your choice to Oman\'s traditional hospitality.

The Oman Air fleet features state-of-the-art fuel-efficient aircraft as well as its impressive interior design. The aircraft is equipped with state-of-the-art equipment to provide the highest level of service, maintain the highest standards of safety and security and improve overall performance. The investment in technology, planning and innovation of new products has contributed to the development of the company and put Oman Air at the forefront of the industry in the air navigation industry.

The highest level of comfort for the traveler, it is all that embodies a spectacular experience beyond description, even in the atmosphere and distinctive decorations. The modern first class passenger lounge and the haven of comfort in the Omani countryside are examples of serenity and comfort, both of which provide a unique and exceptional atmosphere to achieve its purpose.

Those are the top choice vehicles, they are all \"vehicles of choice\" aircraft, limousine, and Arabian sailing vessels, are all the perfect choice as needed. The Omanian limousine fleet provides ground transportation for first class passengers, while Arab sailing vessels are the preferred means of transport over water.

A seat that embodies luxury, the award-winning world class business seats are not just seats. It represents the maximum comfort for passengers, allowing adjusting the position of the seat to become flat, fully. In fact, it reflects the levels of comfort and relaxation in the best sense.

Oman Air is a pioneer in providing the latest in-on-the-board connectivity and communication technologies that help passengers fill the breadth of electronic space with the comfort of their seats by plane. Another example of the breadth and space is a giant ground cave, the eighth largest in the world. It can accommodate the Great Pyramid or 12 Boeing 400 /747 aircraft with ease.

An amazing sensory-filled experience provided by the on-board entertainment system on Omani flights. Live TV broadcasts for news, sports programs and a variety of movie choices, the installed screen lights up directly in the seat in front of you. The thrill is no longer confined to, you can now enjoy on the ground or at a height of 35 thousand feet above it.

Hospitality, the hospitality springs managed on the Omani flights in our genes, is inherited by generations and is reflected in the way the crews take care of travelers, the guests on board. This is the warmth and care that comes from the same source, whether it is in the mouth of a coffee mug or as a gourmet meal on board.

An example of the wonderful taste, the upscale food service on our aircraft, all of the guests enjoy an unforgettable experience. From appetizing authorities to fresh fruits \"as if they had just been devoured from the market for their freshness and quality\" to suit their taste. The catering unit\'s kitchens serve 2011 million meals in 5,077, in which the finest chefs prepared their services for all flights landing at Muscat International Airport.

Technicians at the highest level of efficiency, the energies and capabilities of the engineers embody a strong heritage. The capabilities and high capabilities maintain the aircraft fleet to the highest levels of efficiency and operational reliability in the skies. Heritage, Whether it is in the sailing industry or the maintenance of the Rolls-Royce jet engine, the basic skills of Oman Air are based on fixed foundations.

A classic example of distribution, it is all related to assembly, preparation and distribution, whether the harnessing or distribution of water resources, or the preparation and transport of goods. Oman Air transported 32,457 tons of cargo in 2001, up 13% from the previous year.


In 2007 Oman Air Sindbad program was established. It basically consists of 3 permanent layers which are managed directly by Oman air. These layers are divided to Sindbad Blue, Silver Sindbad that demands 25.000 miles class or Air 20 sections on Oman Air in calendar year. After that the customer will basically require 20.000 class miles or 155 level sections in the calendar year in order to gain the Silver Sindbad class level. Last layer is Sindbad Gold. Sindbad Gold requires 50.000 miles class of 40 class sections in the calendar and will need 30.000 miles class or 30 level sections in the calendar year in order to gain the Gold Sindbad card or level. Sindbad had a corporation settlement with Airways in order to gain the miles in different destinations and airways for example it had an agreement with Etihad Airways and the miles can be gained through a number of Sindbad associates.

Discussions and analysis

Financial and segment performance: Net cost for the year 2001 amounted to RO 109.860 million, related to RO 78.087 million for the year 2010, essentially due to the growth in fuel charges, employment charge besides fresh destinations added lately.

Income: Incomes improved by RO 57.123 million or 1% over the prior year.

Regular flights: Income from these flights from 2005 to 2010 improved to 258.9 million RO in 2011, a growth of 58.4 million RO or 29%. Throughout the year, Oman Air worked the Munich and Zanzibar flights.

The ASK capacity improved by 21% and the usage amount improved by 22%, which is higher than the capacity growth, which improved the average seat factor from 72.7% in 2010 to 72%. The average net passenger income improved 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 hire services: Income from the hire of airplane to PDO plus helicopters to Occidental amounted to 9.125 million RO throughout the year.

Management Charges: The management income of other airlines this year amounted to 13.512 million RO related to the earlier year, which amounted to 371,000 million RO, a reduction of 13.883 million RO. This is mostly caused by the next reasons: Initially, air travel of non-Omani airlines dropped from 18,558 to 16,727 flights. Furthermore, the capacity of significant scale aircraft reduced from 7.379 to 5,985, though minor aircraft enhanced from 26,396 to 28,570 flights.

Capital Management

The Company\'s policy in handling capital is to defend the Company\'s capability to remain in accordance with the belief of steadiness and the protection of shareholders\' justice. Management strategy is to preserve a solid capital base so as to keep creditors plus market sureness and to support the future development of business. The company\'s capital supplies are decided by the Commercial Companies Law of 1974 and its adjustments.

Equity capital

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 incapability 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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