Getting ahead of the crisis early on and demonstrating good governance has been key to safeguarding Oman’s aviation sector. A Crisis Management Board, set up as early as March by Oman Aviation Group, implemented series of emergency measures achieving an impressive 42% reduction in operating costs and an astounding 87% reduction in capital expenditure.
By demonstrating good governance, Oman Aviation Group could tackle COVID-19 head on, minimising the impacts on aviation in the sultanate. ‘The lessons learnt are now being carried forward to a long term restructuring and recovery plan. For this, the group is once again moving quickly to improve network performance, reduce financing and supply chain costs and realign assets to achieve sustainable profitability,’ OAG stated.
In 2019, Oman’s aviation sector contributed over RO1.69bn to the country’s GDP, that is RO217mn in direct contribution and RO152mn in indirect contribution. In addition, RO478mn was generated in supporting industries and RO847mn in tourist spending and visitors exports.
Oman’s aviation sector is an important and economic catalyst that enables the development of allied strategic sectors such as tourism and logistics. But in early 2020, the world began to grapple with the impacts of COVID-19. Global aviation was in freefall and Oman’s aviation sector was hit hard.
‘To counter this unprecedented global crisis, Oman Aviation Group immediately set into action a rapid response task force in the form of a Crisis Management Board. Foreseeing the deeper downturn that would soon play out around the globe, its priority was to mitigate financial losses and safeguard the country’s value chain of aviation assets,’ the group stated.
As early as March, the Crisis management Board implemented a series of emergency measures to minimise the financial impact on the sector resulting from significantly reduced operations. As a parent company to Oman Air, Oman Airports, and Transom, the group revised operating metrics to optimise manpower, scale down operations, and preserve cash.
By April, the Crisis Management Board had achieved an impressive 42% reduction in operating costs and an astounding 87% reduction in capital expenditure.
‘Getting ahead of the crisis early on was key to safeguarding Oman’s aviation sector. Staying ahead will set the stage for successful recovery,’ OAG affirmed.
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