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Oman Air, SATS to set up cargo handling JV


 

 

 



aTP-  Arab tourism portal- National carrier Oman Air has signed an agreement with SATS, a leading provider of gateway services and food solutions in Asia, to set up a cargo handling venture at Muscat International Airport.



Under the agreement, Oman Air will transfer its cargo handling business and related assets to its wholly-owned subsidiary Oman Air Cargo. Subsequently, SATS will acquire a 33 per cent equity stake in the said subsidiary.The joint venture company will then be renamed Oman SATS Cargo.


Oman SATS Cargo will have an issued and paid up share capital of RO500,000 ($1.29 million), comprising 500,000 ordinary shares of RO1 ($2.5). The new venture is expected to commence operations during the second quarter.


The Omani national carrier said it will become the single source provider of cargo handling services first at the existing cargo facility and then at the new state-of-the-art cargo terminal in Muscat International Airport.


SATS will provide the requisite management and technical know-how to the joint venture including staff training as well as reviewing of existing cargo processes and operations work flow at the new cargo terminal in Muscat, it added.


Oman Air CEO Paul Gregorowitsch said: "The joint venture with SATS is one of our initiatives intended to prepare for the growth in airline operations in the coming years as well as secure a quality improvement in the services provided to our cargo customers."


"With SATS as our partner, we also believe that the subsequent growth of the new company will result in increased employment and career development opportunities for Omani citizens," he noted.


Alex Hungate, SATS’ president and CEO said the strategic partnership with Oman Air will enhance connectivity for its cargo customers across Asia and strengthen the sultanate’s position as a transit hub.


"We also see opportunities to develop cold-chain handling capabilities and promote carriage of premium and temperature-controlled airfreight for Oman Air and other airlines,".




 

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