Oman Air is considering raising its share capital from RO12 million ($31.17 million) to RO50 million, a top executive said.
“The idea is to generate funds for proposed expansion projects in the near future,” said Oman Aviation Services Co (OASC) chief executive Abdulrahman Al Busaidy in remarks published in the Gulf News.
“The capital base at present is not enough to meet expansion projects. The private sector has evinced interest in investing in the company.”
Shareholders of the airline, especially the government, have already approved the proposal. Other details are yet to be worked out.
The Omani government has a 34-per-cent stake, while institutions and the investor public hold the rest.
OASC incurred a loss of RO1.58 million for the first half ending June this year against a RO78 million loss for the same period last year.
The company’s revenues, however, were higher at RO29.38 million from RO27.13 million.
Meanwhile, Oman Air is planning to launch commercial flights to New Delhi and Hyderabad, said Al Busaidy.
Currently, Oman Air flies to Bombay, Trivandrum, Madras and Kochi.
“Negotiations with the Indian aviation authorities have made good progress and the final approval from them is expected before the end of the year,” Al Busaidy said in remarks published in the Times of Oman.
He said Oman Air planned to operate three flights a week to Delhi and Hyderabad.
“We focus on the Indian destinations considering the large number of Indian community members here and as part of the government’s efforts to promote Oman as a tourism destination,” Al Busaidy said in the report.