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Oman News

Oman Air cuts 1,000 jobs, including 500 expats, as part of major restructuring drive

Oman Air has reduced its workforce by 1,000 employees, including 500 expatriates, as part of a broad restructuring plan aimed at boosting efficiency and achieving financial sustainability.

TAS News Service

info@thearabianstories.com

Wednesday, April 23, 2025

Muscat – This was announced by His Excellency Eng. Saeed bin Hamoud Al Maawali, Chairman of Oman Air and Oman Airports and Minister of Transport, Communications and Information Technology.

Speaking at the annual media forum held jointly by Oman Air and Oman Airports, the Minister detailed measures taken in 2024 to streamline operations and bring the airline’s staffing levels in line with industry standards.

His Excellency revealed that prior to the restructuring, approximately 45 percent of Oman Air’s workforce consisted of “assignment employees” who were not directly involved in core operational procedures. He explained that in benchmarking Oman Air against other airlines in the region, it was found that non-core roles such as personnel and finance typically make up around 15 percent of staff in similar carriers. “This was the first dilemma we faced,” he noted.

Oman Air’s workforce previously stood at around 4,300 employees, a figure which, according to the Minister, was considerably higher than the average for airlines operating a similar fleet size. “A normal size should be around 2,700 employees,” he stated.

To address this, a decision was made to reduce the workforce by 1,000 employees. Of those, 500 were expatriates, while 400 were Omani nationals whose positions were either redundant or unrelated to direct operational needs. The airline initially launched a voluntary retirement program, which saw 310 employees accept the offer. For the remaining staff, Oman Air provided alternative employment opportunities with the same salary but adjusted job titles and fewer benefits, one of which was a reduction in travel perks. A total of 85 employees accepted the transfer, while the rest were offered both voluntary retirement and job transfers, though some declined both options.

In response to media queries, His Excellency clarified speculation surrounding the sale of Oman Air aircraft to Qatar Airways. He firmly denied any direct sale, stating that the aircraft were offered for sale through a public auction, and the older aircraft that were sold were no longer fit for active aviation use.
Also speaking at the forum, the Acting CEO of Oman Airports addressed the future of the old Muscat airport, stating that several tenders had been issued to develop the surrounding land and infrastructure. The area, which had been largely underutilised in the past, is now being eyed for a variety of investment opportunities. One proposal under consideration is the establishment of a specialised company to support fish exports, making use of the old airport’s strategic location.

The Acting CEO confirmed that four tenders have been issued recently to evaluate the condition of the infrastructure and prepare comprehensive development plans for the site. He explained that the old airport and its surrounding facilities are a matter of strategic importance, and steps are being taken to unlock its investment potential.

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