Oman Air and OAMC Ink Joint Venture Agreement with SATS
Date: 25 Sep 2013
The Government of Oman is making significant investment in new Cargo facilities at various airports in Oman to enhance and develop Cargo movement through the Sultanate.
In view of this initiative, Oman Air, the concessionaire for Cargo handling operations at the airports in Oman and Oman Airport Management Company (OAMC), the company responsible for airport management and operations are entering into a strategic joint venture with a world renowned Cargo operator M/s Singapore Airport Terminal Services Limited (SATS) to develop and operate state-of-the-art cargo facilities in present locations as well as new airports.
Oman Air, OAMC and SATS signed Memorandum Of Understanding (MOU) on 12th September 2013 at Oman Air Head Office in Muscat. Senior Management and Board Members of Oman Air, OAMC and SATS were present at the signing ceremony. H.E. Darwish Ismail Al Balushi, The Chairman of Oman Air, Dr. Juma Ali Juma, The Chairman of OAMC and Mr. Tan Chuan Lye, President and Chief Executive Officer of SATS signed the MOU.
As a next step, all parties will carry out due diligence and develop a business plan for the joint venture. On approval of the business plan by respective Board of Directors, the joint venture company will be formed. Omani companies will hold majority stake in the joint venture.
SATS is the leading provider of airport handling services in Asia. They have experience of more than 60 years in these services. Besides strong presence in Singapore, they also have partnered in 20 Joint Ventures at 36 airports. Of these, 6 Joint Ventures are in Cargo Operations. In most of these ventures, SATS have developed facilities from zero base.
Oman Air and OAMC are confident that, with long experience and proven expertise, SATS will bring in the required management and technical know-how to the Joint Venture, which in turn will lead to development and operation of advanced Cargo facilities around the Sultanate. The joint venture company, with the state-of-the-art facilities and systems, will give boost to cargo movement into, out of and through the Sultanate. This will include air as well as high potential road-to-air and sea-to-air cargo movement. Oman's international trade and commerce will immensely benefit from this new venture and the company will make vital contribution to the national economy.