International law firm Bird & Bird served as international counsel to Oman Air on its acquisition of Oman’s primary low-cost carrier, SalamAir.

The transaction (which involved the acquisition of 90% of SalamAir’s issued share capital) marks a significant step in the Sultanate’s efforts to strengthen its aviation sector and align it with its long term economic and tourism objectives. It forms part of the broader Oman Vision 2040 strategy to develop a comprehensive, competitive and sustainable national aviation ecosystem, with aviation identified as a key enabler of economic diversification and global connectivity.

The acquisition underpins the Government of Oman’s evolving dual airline strategy, under which Oman Air and SalamAir will continue to operate as independent brands with distinct identities, service propositions and target markets.

SalamAir will maintain its focus on the low cost segment, while Oman Air will continue in its role as the Sultanate’s full service national carrier, together strengthening Oman’s overall aviation offering. Through closer alignment between the two carriers, the Government aims to improve sector wide efficiency and provide passengers with greater choice across both full service and low cost travel segments.

The transaction is also expected to support the long term financial sustainability of Oman’s aviation sector. Enhanced coordination between the airlines is intended to streamline cost structures, improve financial resilience and strengthen revenue quality, including across aviation related services such as ground handling. With full government backing, SalamAir is expected to accelerate further its role in expanding low cost connectivity, supporting inbound tourism and facilitating regional travel.

SalamAir is Oman’s first low cost airline, launched in 2016 and headquartered in Muscat. It operates a growing network of domestic and regional routes across the Middle East, South Asia and East Africa, playing an increasingly important role in improving accessibility and supporting tourism growth.

Oman Air is the national flag carrier of the Sultanate of Oman. Founded in 1993 and headquartered in Muscat, it operates as a full service airline with a network spanning the Middle East, Europe, Asia and Africa, helping to position Oman as a premium long haul and regional travel hub.

The Bird & Bird corporate team was led by partner Simon Allport in London, supported by senior associate Will Holder and a wider Bird & Bird team in Singapore. Bird & Bird also worked on the transaction alongside local counsel in Oman, Al Busaidy, Mansoor Jamal & Co., led by partner Mansoor Malik. 

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