The collaboration, set to launch in the second quarter of the year, is to operate under the new handle of Oman SATS Cargo. The company will handle freight at the existing cargo facility, as well as at the new cargo terminal in Muscat International airport.
Oman Air will hand over its cargo handling business to subsidiary company, Oman Air Cargo; SATS will then acquire shares in latter from Oman Air, worth 33% of the company’s share capital, for the sum of S$22.4m.
Paul Gregorowitsch, Chief Executive of Oman Air, 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.” He went on to explain that Oman Air is hopeful that the venture will ultimately provide greater employment opportunities and career development opportunities for the residents of Oman.
On behalf of SATS, Alex Hungate, President and Chief Executive, commented: “This strategic partnership with Oman Air will enhance connectivity for our cargo customers across Asia and strengthen Oman’s position as a transit hub.” Additionally he remarked that SATS hopes to maximise on opportunities to enhance its cold-chain handling services, as well as promote premium and temperature-controlled airfreight offerings for Oman Air and other airlines.
The two companies released a joint statement detailing the conditions of the deal, which asserted that the acquisition is, “subject to the fulfilment of certain conditions precedent.”
