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FINANCIAL NEWS
Oman market not big enough for low-cost carrier
29 Sep 2014
(MENAFN) Oman’s small size of airline market and stringent labor laws are not favorable for starting a budget carrier.
The small size of the domestic market, the stringent labor law (which does not allow to get cheap labor on cash and carry basis), low level of air ticket reservation on Internet and bilateral agreements with countries on flying rights are not favorable for operating a viable budget carrier, said Oman Air chief executive officer Paul Gregorowitsch.
“The Ministry of Manpower does not allow Omanis to work on cash and carry basis,” he said, adding that, “If we want to start a budget airline, it will be at the cost of Oman Air.”
Addressing a press conference to announce the airline’s future plans, Gregorowitsch said for a budget airline to make revenue, it has to secure licenses and permission to fly to several destinations in other countries. “If we have these restrictions, how can we fly between New Delhi and Muscat six or seven times a day? “.
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