VZCZCXYZ0001
RR RUEHWEB

DE RUEHMS #0825 2411058
ZNR UUUUU ZZH
R 291058Z AUG 07
FM AMEMBASSY MUSCAT
TO RUEHC/SECSTATE WASHDC 8684
INFO RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS MUSCAT 000825 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARP, EEB/TRA/AN, EEB/CBA 
COMMERCE FOR ITA COBERG 
STATE PASS DOT/OST FOR SHATLEY 
 
E.O. 12958: N/A 
TAGS: EAIR BEXP MU
SUBJECT: OMAN AIR TO BEGIN LONG-HAUL OPERATIONS 
 
This message contains sensitive business information.  Please 
protect accordingly. 
 
¶1. (SBU) On August 20, Econoff discussed Oman Air's long-haul 
service plans with Alan Arch, the airline's commercial 
director.  Arch confirmed that Oman Air would begin nonstop 
service from Muscat to London beginning on November 15, 
though airport selection would depend on obtaining 
commercially-viable slots at Heathrow.  In addition, Oman Air 
will begin nonstop service to Bangkok on the same day.  The 
national carrier will contract on a wet-lease basis with 
Portuguese-based Hifly Airlines (previously operating as Air 
Luxor).  The London and Bangkok services will be offered six 
times per week on A330 and A310 aircraft, respectively. 
 
¶2. (SBU) For 2008, Arch expects Oman Air to expand its 
long-haul services to Frankfurt and Kuala Lumpur, with Jeddah 
and Riyadh completing with regional network.  He anticipates 
the delivery of two more Boeing 737-800 series aircraft by 
November 2007, and is working on arrangements to obtain 
additional widebody aircraft on a wet-lease basis.  These 
services will replace those formerly provided by Gulf Air, 
which Oman had divested itself from earlier this year.  In 
response, Gulf Air has quickly halved its Muscat flight 
schedule from over 150 departures per week earlier in the 
year to only 77, with many of those going to Gulf Air's sole 
hub in Manama.  Gulf Air is reluctant to shed its profitable 
routes out of Muscat, however, as it still operates a 
considerable number of flights to India. 
 
¶3. (SBU) Comment.  The Omani government is quickly looking to 
fill the gap in service from Muscat as a result of its 
withdraw from Gulf Air.  In this effort, coordination efforts 
between the two carriers have been uneven.  For example, Gulf 
Air has ended its Asian and Saudi services from Muscat, but 
is continuing its London service until Oman Air is ready to 
commence operations.  Gulf Air may not give up its India 
service, which would prevent Oman Air from adding flights on 
these lucrative routes on account that weekly seat numbers 
are capped between the two countries. 
 
¶4. (SBU) Comment continued. In addition to beefing up Oman 
Air, the government is actively wooing foreign carriers to 
begin service to Muscat.  Oman's Director of Air Transport 
noted to Econoff that civil aviation authorities are 
welcoming new services, and hoped that U.S. carriers would 
consider serving Muscat in conjunction with services to Dubai 
or Abu Dhabi.  When Econoff noted that the current draft of 
the U.S.-Oman Open Skies air transport agreement, currently 
applied on the basis of comity and reciprocity, restricted 
fifth freedom services from Muscat to Dubai and to points in 
India, the Director responded that they would "accommodate" 
such requests from U.S. carriers.  The Director also noted 
that the government would like to sign the Open Skies 
agreement by the end of the year, but that his office would 
need to review Language Services comments regarding the 
Arabic text of the agreement.  Recently, KLM announced that 
it was resuming service to Oman with five-times per week 
service to Amsterdam via Kuwait, providing Northwest Airlines 
the opportunity to offer Muscat on a codeshare basis.  End 
Comment. 
 
 
 
 
 
 
GRAPPO