March 16, 2007: Oman Air, the national carrier of Sultanate of Oman, has received shareholder's approval to infuse its share capital from RO13.282 million to RO50 million ($129.9 million) by way of a private placement. The placement would be in favour of the country's government, a majority shareholder in the company.

The government would pump in an additional RO56.7 million by way of private placement of 36.7 million shares. This will increase the government's stake to 81 per cent from the present 34 per cent.

"Oman Air's strategy was to attract business travellers using comfortable, medium-range airplanes and high frequencies. We have effectively grown since our humble beginnings in 1993. The airline was created as a subsidiary of OAS, a ground services and cargo handling. The company's objective and plan were to become the carrier of choice for business travellers," Oman Air corporate communications manager Usama Karim Al Haremi said.

The carrier would use the proceeds from the private placement to acquire new aircraft and routes. At present, Oman Air operates a fleet of six Boeing 737s and four ATR 42-500s, most of which are

Single aisle planes compared with the twin aisle aircraft used by competitors on the same routes.

The company would acquire three new Boeing 737-700s and 737-800s to replace the 737s. The aircraft would be on lease and would be added to the company's fleet, starting this month.

One aircraft would join the fleet on March 9 on a lease agreement, while another would arrive in November. The third aircraft will be available in April 2008 on lease.

"Oman Air will focus on those destinations that produce tourists to Oman. The growth will naturally, go hand-in-hand with the development of tourism in Oman. One of our major strategies is to fuel the growth potential of tourism.

The carrier will focus on destinations and intends to lure tourists as part of the tourism development initiatives of Oman. The airline is also considering commencing high-frequency non-stop service.

It has earlier launched a `Fly 'n Float' package that offers a mix of cruise and shore-based holidays in India . The package enables tourists to fly from Muscat to Mumbai in the morning with two-night cruise along the Arabian Sea coast to Goa on the Star Cruises vessel Superstar Libra.

When the ship arrives in Goa, an optional half-day tour includes a visit to churches, Portuguese-style villas and old fortresses.

The package costs 268 Omani riyals per adult and includes a return economy class fare. The package is valid until April 30.