Oman Air Cuts Nearly 25% of Workforce Amid Aggressive Restructuring Push
Rahul Dsilva | Dreamstime.com
Oman Air, the flag carrier of the Sultanate of Oman, has undertaken a sweeping restructuring initiative aimed at improving financial performance and operational efficiency. As part of this transformation, the airline has reduced its workforce by approximately 1,000 employees, lowering its headcount from 4,300 to 3,300—a reduction of nearly 25%.
Job Cuts Target Workforce Inefficiencies
According to Gulf News, the layoffs included 400 Omani nationals, with the remaining positions held by expatriates. Approximately 310 employees participated in a voluntary retirement program, while others were reportedly offered alternative roles with unchanged base pay but reduced benefits.
The decision follows findings from the Omani Minister of Transport, who stated that 45% of Oman Air’s staff were classified as “non-core” employees—a figure significantly higher than the regional industry average. Based on fleet size and benchmark productivity, Oman Air should employ roughly 2,700 people, further highlighting the scale of the prior operational inefficiency.
Strategic Overhaul: From Premium Boutique to Leaner Model
Oman Air has long positioned itself as a boutique premium carrier, serving a niche market out of Muscat International Airport (MCT) without seeking to rival regional giants like Emirates or Qatar Airways in scale. However, under the leadership of a new CEO, the airline has shifted course to reduce financial losses and streamline operations.
Key restructuring steps taken in the past year include:
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Retiring the Airbus A330 fleet
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Eliminating first class service
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Introducing an all-economy subfleet
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Cutting workforce by 25%
These measures reflect a broader shift in strategy—cost control over revenue expansion—in an effort to stabilize the carrier’s financial outlook.
Looking Ahead: oneworld Membership and Potential Growth
Oman Air is expected to join the oneworld alliance in June 2025, marking a pivotal moment in its global positioning. Alliance membership will open the door to broader connectivity and international partnerships, potentially driving higher yield traffic through codeshares and reciprocal loyalty benefits.
There is also speculation about long-term fleet growth, though details remain limited. The airline has not yet signaled whether its focus will remain on cost containment or if it will pivot to selective network and fleet expansion after achieving operational stability.
Bottom Line
Oman Air has reduced its workforce by 1,000 employees, representing a significant shift in its restructuring strategy. With a sharper focus on efficiency, asset optimization, and lean operations, the airline is preparing to join the oneworld alliance in mid-2025. As Oman Air attempts to reshape its future, the coming years will determine whether the carrier can maintain its premium identity while achieving long-term financial sustainability.
