Muscat-based Oman Air has agreed to transfer its cargo operations into a new joint venture with SATS Investments Ptd Ltd, the wholly-owned subsidiary of Singapore-based SATS Ltd., and let SATS assume its cargo handling duties at Muscat International Airport under the heading of the newly formed company, Oman SATS Cargo LLC.
\nAs part of the agreement, Oman Air will first spin-off its cargo handling business into a wholly-owned subsidiary, Oman Air Cargo LLC. SATS then plans to acquire 165,000 shares in the subsidiary, equal to a 33 percent stake, at a price of U.S. $16.5 million. Following the investment from SATS, the joint venture will be renamed Oman SATS Cargo LLC.
\nOman SATS Cargo will commence operations at Muscat\u2019s existing cargo terminal, during the second quarter of 2016, and in the future at the airport\u2019s new 200,000-tonne-capacity cargo terminal.
\nOman Air expects the new joint venture with SATS to ready the airline for future growth through sweeping process improvements. Paul Gregorowitsch, Oman Air\u2019s Chief Executive Officer said \u201cThe 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.\u201d
\nSAT also expects the joint venture to contribute to Muscat\u2019s growing influence as a transit hub for cargo as the company increases global connectivity. Alex Hungate, SAT\u2019s President and Chief Executive Officer added that the \u201cwe also see opportunities to develop cold-chain handling capabilities and promote carriage of premium and temperature-controlled airfreight for Oman Air and other airlines\u201d
\nSource: aircargoworld<\/p>\n","protected":false},"excerpt":{"rendered":"