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Oman Air SWOT & PESTLE Analysis

ID : 52776353| May 2021| 14 pages

COMPANY PROFILE -Oman Air

Business Sector :Aviation

Operating Geography :Oman, Middle East, Global

About Oman Air :

Oman Air is the national flagship airline carrier of the Sultanate of Oman and an Official 4 Star Airline (Skytrax 2011). The airline is based at Muscat International Airport in Seeb, Muscat and has an international workforce of approximately 5,000 employees as of 2020. Oman Air operates a range of services within the Middle East, the Indian subcontinent, Asia and Europe. The company offers commercial charter flights that engage in the provision of air transportation and cargo handling services. Founded in 1993, Oman Air traces its roots back to 1970 when Oman International services (OIS) was established. Oman Air commenced when their Boeing 737-300 from Ansett Worldwide Aviation Services (AWAS) flew from Muscat to Salalah. The turning point in the history of Oman Air was the launch of its first long-haul operations to London Gatwick in 2007. Subsequently, the carrier expanded its network with numerous long-haul destinations in the next few years. Oman Air was awarded for the third year in the row as the “Best Airline in Europe, Middle East and Africa” at the Seven Stars Luxury Lifestyle and Hospitality Awards 2018.
Oman Air’s unique selling proposition or USP lies in being the first airline in the world to offer both mobile phone and Wi-Fi Internet services on selected routes. Its mission statement reads, “We work to be the best by benchmarking our services against the best in the industry. We are committed to constant upgrading of skills, processes and technology to operate more effectively in the given operating environment without compromising on quality and profitability.”

Oman Air Revenue :


RO 523,186 million– for the year 2017 (Growth 16.37%)
RO 449,552 million– for the year 2016

Competitive Analysis of Oman Air

SWOT
PESTLE
The SWOT analysis for Oman Air is presented below in a table followed by the detailed analysis report.
StrengthsWeaknesses
1. Majorly owned by the Omani Government
2. Growing fleet of latest aircrafts
3. Major role in supporting commercial, industrial and tourism sector
4. Multiple recognitions and awards for luxurious service
1. Participation in corporate social responsibility activities is not advertised to its advantage
2. Lower brand recognition than the Middle East airline giants
3. Does not provide annual reports as a governance best-practice
OpportunitiesThreats
1. Partnership with other airlines needs to be renewed
2. Fleet expansion process can be accelerated to start new routes
1. Low prices offered by competitor airlines
2. Loss incurred due to grounding of 737 MAX
3. Impact on aviation industry and business due to non-operation in Covid-19 crisis
4. Fluctuating oil prices leading to economic uncertainty
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Oman Air

Strength

This section is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threats

1. Low prices offered by competitor airline: Aviation Industry is undergoing an aggressive competition to expand market share and customer base. Oman Air offers First Class, Business Class and Economy Class to its customers. Muscat based low-cost or budget airline, SalamAir launched in 2016 has been competing and has been a cause of concern for Oman Air. These competitors are offering travel tickets at half the price of Oman Air regardless of whether it involves domestic travel or international travel. Budget or low-cost airline doesn’t imply that service is terrible, but they are low on the luxury quotient. Low-cost or budget airlines also offer added products and services, usually tagged as luxury, but at an additional cost. It becomes appealing for customers to see a difference in price while booking and then booking the travel through budget or low-cost airline. Oman Air needs to compete with these new entrants in the aviation industry to control its operation cost and also to keep its customer base intact.

2 Loss incurred due to grounding of 737 MAX: Boeing 737 MAX has been grounded worldwide by the aviation authorities. This decision was taken after two incidents reported in October 2018 and March 2019 after Lion Air #610 and Ethiopian Airlines #302 crashed respectively demanding strict investigation and action. Later in the investigation, several manufacturing and system defects were discovered resulting into worldwide grounding of 737 MAX. Oman Air had ten of these 737 MAX aircrafts of which five were purchased in later 2018 and incurred business loss due to grounding of these aircrafts. The uncertainty over these aircraft still prevails, adding to the disruption of airline operations.

The remaining section of “Threats” is available only in the 'Complete Report' on purchase.

Major Competitors :

Major Brands :

  • Oman Air Sindbad
  • Oman Air Holidays
  • Oman Air Catering
  • Oman Air Cargo
  • Oman Air Engineering
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References used in Oman Air SWOT & PESTLE Analysis Report

1. Oman Air Looks To Transform Itself - https://simpleflying.com/oman-air-transformation/
2. Oman Air Cargo rolls out its mobile App solution using - : https://www.omanair.com/in/en/about-us/press-releases/oman-air-cargo-rolls-out-its-mobile-app-solution-using-smartkargo
3. ASSEMBLY — 40TH SESSION EXECUTIVE COMMITTEE - https://www.iata.org/contentassets/e45e5219cc8c4277a0e80562590793da/environmental-standards-policy.pdf
4. The ne wings of Oman - https://www.omanair.com/gbl/en
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Oman Air SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2021). Oman Air SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/oman-air/ [Accessed 03 Aug, 2021].

In-text: (SWOT & PESTLE.com, 2021)

Copyrights and Disclaimer

Oman Air SWOT and PESTLE analysis has been conducted by Akshay Mohan and reviewed by senior analysts from Barakaat Consulting.

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Oman Air SWOT & PESTLE Analysis
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