Oman Air taps Oliver Wyman for major transformation plan

In a bid to turn the company around, Oman Air has given a green light to structural reforms suggested by global strategic consulting firm Oliver Wyman.

The restructuring plan, to be implemented over the next 3 to 4 years, will seek to remedy major losses and mounting debt. The main objective of the plan will be to make the airline profitable again and will, among other things, will name a new acting chief executive officer.

The plan comes after a study by Oliver Wyman found serious issues with Oman Air’s business model. The consulting firm was appointed to the task by Royal Order by Sultan Haitham bin Tarik, also the Prime Minister of Oman.

Oman’s Minister of Transport Said bin Hamood al Maawali, who also chairs the Board of Directors of Oman Air, confirmed the board’s decision last week.

“Many changes will be made in the current executive team of Oman Air in the coming months, reforming the company’s Board of Directors and attracting experts and competencies specialized in the aviation sector, whether local or international,” said Maawali.

Though the airline has not released figures, the losses they have experienced have been “significant,” according to Maawali. This negative trend preceded Covid-19, but the pandemic halt in travel made matters markedly worse and a recovery has been slow in the making.

The plan will reportedly have four main pillars: attaining financial sustainability, reforming corporate governance, commercial considerations, and human capital. Each of those categories will be seen over by a special committee that will then report to the board. It was reported that international experts will be contracted to help Oman Air review their current destinations and make decisions on continuing or discontinuing services.

Middle Eastern airlines are rated among the best in the world, with several making it to a recent list of the top ten compiled by the Airline Passenger Experience Association in collaboration with consultancy firm Yates & Partners.