Oman Air cuts losses by 54pc to $2.16m
Oman Air has brought down its net losses by 54 per cent to RO835,000 ($2.16 million) during the first half of this year from RO1.80 million for the corresponding period of 2000, it was reported.The airline attributed the improvement to its cost-cutting measures and a rescheduling plan, said a report. Increase in the number of passengers, a reduction in commission paid to travel agents and higher income in the domestic sector were some of the factors that helped, a top Oman Air official said. The official added that the net yield of the airline increased due to a decline in commission and other incentives paid to travel agents. Revenue from domestic operation was better due to a slight hike in air fares on the Muscat-Salalah route, the report said. Oman Air's total revenue receded marginally by two per cent to RO 25.7 million during the first six-month period this year from RO 26.1 million for the corresponding period of 2000. The carrier's aircraft operating expense declined by 11 per cent to RO 8.2 million from RO 9.2 million during the period under review. Operating lease rentals were down by 11 per cent to RO 3.3 million during the first half of this year from RO 3.6 million for the same period last year. As part of the restructuring plan, the airline has pulled out of two non-viable sectorsÑthe Pakistan and the Muscat-Colombo sector. Oman Air now has a code-sharing agreement with SriLankan Airlines. The voluntary retirement scheme (VRS) was another move to cut down operational cost by bringing down the workforce. Some 34 employees have opted for VRS, which was open for the first three months this year, the report said.