Oman Air has revealed plans to restructure its business that will see the incorporation of subsidiary or associate companies to manage its ground handling, hospitality, cargo handling, duty free sales, and engineering operations, said a report.

The company aims to achieve functional efficiencies and improve the quality of services through this restructuring, the Oman Daily Observer reported.

The overall restructuring strategy is slated for discussion and approval at the Extraordinary General Meeting (EGM) of shareholders set for October 25.

Two companies will initially be formed as part of the restructuring programme:  one to carry out the airline’s Ground Handling operations, and the other to oversee its Cargo Handling business, the report said.

The Cargo Business will be further spun out into a joint venture in partnership with Singapore-based gateway solutions provider SATS Investments, who will acquire a 33 per cent stake in the proposed Cargo under joint venture, share purchase and technical services agreements with Oman Air.

Oman Air’s board of directors will apply for the requisite regulatory approvals and licenses from the relevant authorities to transfer each of the identified business divisions to separate legal entities after receiving the approval from shareholders, it said.

Oman Air is also looking to boost its paid-up capital by around 20 per cent to RO684.16 million
($1.77 billion) to fund its expansion programme.