Muscat: In an exclusive interview with the Observer, Con Korfiatis, the newly appointed CEO of Oman Air, emphasized the airline's commitment to a complete transformation by 2027. He believes that this timeframe is reasonable to turn around the financial situation and establish a solid foundation for growth.
During the interview, Korfiatis discussed various issues and highlighted that the airline's immediate priority is to successfully implement its strategy. This will ensure that Oman Air becomes an efficient and financially sustainable organization, capable of supporting itself and contributing to the national objectives, particularly in the fields of aviation and tourism.
Korfiatis mentioned that there have already been some positive results, as acknowledged by the Chairman. Moving forward, the airline aims to gain more momentum in the second half of the year. The ultimate goal is to achieve a business breakeven level within the next three to four years. Although this is an ambitious program, Korfiatis expressed confidence in the airline's ability to deliver it.
Furthermore, the CEO acknowledged that the airline's previous investments were not justified. The transformation journey aims to improve the airline's financial position and equip it for the future. To achieve this, there is still much work to be done, including enhancing processes and procedures, optimizing asset utilization, increasing productivity, reviewing contracts and cost bases, embracing digitalization, and implementing other necessary measures.
We will exhaust all possibilities in our quest to become a top-notch commercial organization. By maximizing our resources, we can attract more investment in the airline, benefiting both the country and our passengers.
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Proud tradition
Oman Air has a rich heritage. It is an exceptional airline that can rival any other airline globally. This opinion is based on the perspective of customer experience.
“I am confident in the quality of our product, the positive attitude of our cabin crew, and our service-oriented approach. Our catering is outstanding, and our network connects Europe to the Indian Subcontinent and the Far East. We have been consistently recognized with global awards, particularly for our On-Time Performance.
In essence, we have successfully built an exceptional brand that proudly represents our country. Therefore, we have a significant responsibility to maintain that legacy. However, as a 30-year-old airline that has not undergone significant transformation, there are numerous improvements needed on the business front.”
Looking ahead to the future, he remarked, “Once we stabilize our financial position, we can focus on expanding our fleet, increasing our presence, and exploring new opportunities. The future holds a wealth of exciting possibilities for us.”
The CEO addressed the perception of excessive downsizing by stating that the company's evaluation of costs and expenses naturally led to a review of the scale of their operations. However, the CEO emphasized that the objective was not solely to make cuts, but rather to enhance efficiencies by setting aside unprofitable activities and assets, and restructuring to align with future goals. The CEO emphasized the importance of addressing foundational issues before pursuing growth opportunities.
Fleet and Network
We are currently exploring options to streamline our fleet. It is not economically viable for a medium-sized airline like ours to have four or five different types of aircraft. This leads to numerous inefficiencies in terms of training, maintenance, crew qualifications, and licenses. While we have not made a final decision yet, we will do so very soon.
He mentioned that while their operations are continuous throughout the year, the demand for travel varies with the seasons, impacting certain destinations more than others. In response to high demand, they have increased their summer flight offerings for multiple destinations. Airlines are always assessing and adjusting their schedules based on market conditions.
Back to China?
We were inquired about the possibility of resuming routes to China, and our response was that we are not ruling it out completely. The Chinese market is significant and will likely be important for us in the future. With a population of 1.4 billion people, it would be unwise to disregard the potential opportunities there. Therefore, stating definitively that we will never operate flights to China would be shortsighted. It's not a question of if, but rather when we will consider expanding our services to China, although the exact timing remains uncertain.
