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Oman government completes acquisition of SalamAir to boost national aviation sector

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Oman Government Completes Acquisition of SalamAir to Strengthen National Aviation Sector

MUSCAT, Oman — March 26, 2026

The Government of Oman announced the completion of its acquisition of low-cost carrier SalamAir on March 26, 2026, to reinforce the national aviation system and boost tourism and economic growth. The deal enhances integration with Oman Air, reduces network overlaps, and improves operational efficiency while both airlines operate independently.

Announcement Specifics

Oman’s government finalized the full acquisition of SalamAir, the country’s first low-cost carrier headquartered in Muscat with a fleet of 15 Airbus A320/A321neo aircraft serving over 44 destinations across the Middle East, South Asia, and Europe. The transaction value was not disclosed. SalamAir operates from Muscat International Airport as its main hub and Salalah as a focus city. Both carriers will retain separate brands and fleets.

Stakeholder Perspective:

“The move will enhance integration with Oman Air, reduce overlap in destination networks and improve operational efficiency, while both carriers will continue to operate as independent brands.”

— Eng. Said bin Hamoud al Maawali, Minister of Transport, Communications and Information Technology

Why it matters: This operational synergy streamlines routes without requiring a full merger, optimizing capacity amid rising regional competition.

SalamAir CEO Adrian Hamilton-Manns called the government’s acquisition “very positive for SalamAir’s growth,” highlighting potential for expanded routes and fleet additions.

Industry Context

The acquisition aligns with Oman’s National Aviation Strategy 2040, which targets over OMR 1 billion ($2.6 billion) in private investments. SalamAir transported 3.4 million passengers in 2025 across 22,164 flights, supporting the tourism sector’s post-pandemic recovery. Unlike regional mega-carriers such as Emirates or Qatar Airways, this move bolsters Oman’s dual-model approach combining full-service operations (Oman Air) with low-cost offerings.

In the GCC, state-backed consolidations enhance competitiveness. Oman gains better connectivity to underserved markets including Indonesia and Syria, countering rival hubs in Dubai and Riyadh. SalamAir’s operations remain Muscat-centric with no current presence in Riyadh or Dubai.

Conclusion

This acquisition sets the stage for sustainable growth, with plans for fleet expansion to 25 aircraft by 2028 and alignment with Oman Vision 2040, promising enhanced tourism inflows and economic diversification.

Sources: Zawya, Oman Observer, SalamAir Press, Wikipedia

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