Oman Air Denies Mass Layoff Rumors Amid Restructuring
Muscat, Oman
Oman Air, the flag carrier of the Sultanate of Oman, has officially denied reports claiming that 1,000 employees were laid off due to recent restructuring efforts. The rumors, which spread rapidly across social media platforms, sparked concerns among employees and the public. However, the airline has now clarified that no Omani employees have been terminated under the ongoing transformation plan.
Workforce Restructuring: Facts vs. Rumors
In a public statement, Oman Air emphasized that its transformation program does not involve mass layoffs of local staff. While acknowledging a surplus of 365 employees, the airline reassured the public that it is working closely with the Ministry of Labour and other relevant government entities to explore alternative employment options for affected individuals.
The airline added that severance packages were offered only to employees who could not be absorbed into the new structure. These packages include full entitlements, and Oman Air confirmed that no Omani employee’s rights have been compromised.
“The goal is not to cut jobs, but to create a sustainable, efficient, and financially strong airline that continues to contribute to Oman’s economy and Vision 2040,” said a spokesperson from the airline.
A Turnaround Strategy Focused on Sustainability
Oman Air began implementing its transformation plan in August 2023 as part of a national strategy to reduce the financial burden on the state while ensuring long-term viability. This transformation is rooted in several key areas: financial restructuring, route and fleet optimization, operational efficiency, and workforce realignment.
The airline faced mounting pressure in the aftermath of the COVID-19 pandemic, which drastically affected global aviation. Like many carriers in the region and beyond, Oman Air had to adapt to a new economic reality by tightening operations and reassessing its business model.
By 2024, Oman Air had already seen signs of recovery. A 40% increase in earnings before interest and taxes (EBIT) brought its financials to a stronger position, reaching OMR 76 million. Importantly, the airline managed to settle overdue payments worth OMR 45 million without taking on additional debt — a strong indicator of improved fiscal discipline.
Fleet Size Reduced, Network Streamlined
One of the most visible changes during the restructuring has been the reduction in fleet size. Oman Air downsized its fleet by 29% in 2024, now operating with 32 aircraft. This decision was made to match current market demand and optimize route profitability.
The carrier also made strategic changes to its flight network. Some underperforming routes to countries such as Pakistan, Bangladesh, and Sri Lanka have been suspended. At the same time, capacity has been added on more profitable routes, particularly in India, where demand remains robust.
The route network adjustments are not just about cost-cutting — they are aimed at aligning the airline’s operations with Oman’s Vision 2040, which calls for diversification of the economy and enhancing the role of aviation in tourism and logistics.
Omanisation and National Talent Development
Another key focus of Oman Air’s transformation is the promotion of local talent through an increased Omanisation rate. As of early 2025, the airline has raised its Omanisation level from 74% to 78%, with many departments operating at over 90% local staffing.
Despite the challenges posed by workforce optimization, Oman Air reaffirmed its commitment to hiring and training Omani nationals. The airline has continued to invest in leadership development programs and technical training in coordination with aviation academies and international partners.
“This is not just a business transformation; it’s a national mission to empower Omani citizens and strengthen their role in the future of our aviation sector,” said Oman Air CEO Con Korfiatis in a recent interview.
Preparing for Global Expansion
Looking ahead, Oman Air is not merely downsizing — it’s preparing for a smarter, leaner, and more globally integrated future. The airline has signaled plans to join the Oneworld airline alliance, a move that would significantly expand its international footprint and offer passengers better connectivity across Europe, Asia, and Africa.
This strategic partnership would give Oman Air customers access to over 900 destinations worldwide, improve code-sharing agreements, and enhance frequent flyer benefits. For Oman, it would also mean greater visibility on the global aviation stage, reinforcing the country’s ambitions to become a major hub in the region.
In parallel, the airline is exploring opportunities in cargo, tourism partnerships, and digital innovation to support its long-term revenue streams.
Public Confidence and Transparency
While the restructuring process has understandably led to concerns, especially among employees and their families, Oman Air has made efforts to be transparent. Frequent public updates, open dialogue with labor authorities, and assurance of fair treatment to employees have helped calm tensions.
Industry experts have noted that Oman Air’s approach contrasts with some other national carriers in the region, where transformation often comes with abrupt downsizing or opaque decision-making.
“Oman Air’s strategy appears carefully calculated. They’re reducing excesses, protecting local jobs, and positioning themselves for a more competitive future,” said aviation analyst Hamed Al Barwani. “If executed well, this could become a model for responsible restructuring in the Gulf aviation sector.”
Conclusion
Oman Air is undergoing a significant transformation — one driven by financial discipline, operational efficiency, and national development goals. While the process includes tough decisions, the airline has made it clear that preserving Omani jobs and contributing to the nation’s economic vision remain top priorities.
As the restructuring continues through 2027, Oman Air is expected to emerge leaner, stronger, and more competitive, both regionally and globally. In the meantime, travelers and industry watchers alike will be keeping a close eye on how this national carrier evolves in the coming years.
For official updates on Oman Air’s restructuring, route changes, or recruitment initiatives, visit the airline’s website or follow its verified social media channels.
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