End Year Newsletter 2023 Dec

Commercial Marketing

Dec 2023

Newsletter

Content Message from the CCO Message From Acting Route Development Director Route Development Updates Cargo & Logistics Route Development on the Road Message from VP Non-Aeronautical Commercial Development Updates Commercial Marketing The Future activities for 2024 and beyond.

Chief Commercial Officer Message

welcome to Commercial Department Marketing newsletter Welcome to the Route Development and Integrated Marketing Team’s newsletter covering the second half of 2023. As always, we aim to update you on the various activities that have been undertaken by the team, and to highlight all the recent route development and marketing news and announcements.

This year has proved to be an extremely positive year. The continued increase in airlines and new destinations served from our airports, and the ever-expanding range of commercial services and products that we are making available to our customers.

Overall passenger numbers across our airports during the summer season are almost 50% higher than last year, with both Muscat and Salalah Airports welcoming new routes from both existing and new airline partners.

For Salalah Airport, the passenger numbers for 2023 are already exceeding the levels last seen in 2019. The Airport has had its busiest ever Khareef season, driven by the new services added to destinations across the Gulf, and new charter services bringing European visitors – an area that the Team are looking to grow further in the coming years.

The Cargo Team have also been working to raise the awareness of Oman as an efficient cargo hub. The efforts to develop partnerships with stakeholders across Oman, that we highlighted in the last newsletter, has started to pay dividends with new services linked to the air-sea corridor initiative recently commenced.

In addition, the opening of a new courier and parcel facility for Aramex next to Muscat Airport will also provide further opportunities to demonstrate the operational efficiency and expertise of the airport’s wider cargo community.

The Marketing Team have continued their hard work to support our commercial colleagues, promoting new products and services, and raising awareness of the commercial offer to our passengers. It is important to not only develop initiatives that promote the airport through traditional and digital marketing channels, but also to engage with passengers whilst they travel through the airport.

As we continue to work with our partners – both internally and externally – we are always exploring new and innovative ways to develop our commercial offer; ensuring that we remain at the forefront of our industry and deliver a memorable experience to our passengers.

Finally, Oman Airports was proud to be the host of the Airports Innovate conference in November, which was organised by ACI World, ACI Asia Pacific & Middle East, and ACI Europe. The event brought together global airport and airline leaders, alongside technology experts, aviation suppliers and industry start-ups. The event was a fantastic opportunity to showcase Oman, and the facilities at Muscat Airport, and thank you to all the Oman Airports team who made the event so successful and demonstrated our Omani hospitality to all delegates.

“We are always exploring new and innovative ways to develop our commercial offer, ensuring that we remain at the forefront of our industry and deliver a memorable experience to our passengers”

Samer Al Nabhani Chief Commercail Officer

Message from Acting Senior Manager Route Development

The active start that we experienced at the beginning of the year has continued into the second half of 2023, both in terms of the passenger numbers, and the cargo being handled, at our airports.

Route Development Team

It has also been a busy period for the Route Development Team as we have welcomed new services over the past few months that have further enhanced our connectivity to the wider region, and importantly supporting the economic and tourism growth objectives of Oman.

One key action that forms the basis for our ongoing discussions with airlines and partners, is the provision of relevant and in-depth market intelligence. Data underpins what we do and to support this we have continued this year our detailed survey of passengers at Muscat Airport.

The Team continues to work on supporting the launch of these new services, however what is also important is engaging with our existing airlines to ensure their route network from our airports thrives and expands with new frequencies or additional capacity. This work is sometimes not as high profile as the new route launches, but it is fundamental to supporting our growing numbers.

This provides us with an understanding of our passengers, their demographics, travel habits and expectations, and is an important tool in our airline engagement.

As always, we’ll keep you all updated as we see further developments over the coming months.

The busy start to the year that we experienced has continued into the second half of 2023, both in terms of the passenger numbers passing through, and the cargo being handled, at our airports.

Salim Al Shukili Route Development Acting Director

Route Development Updates

The second half of 2023 has continued the strong traffic performance that we saw at the beginning of the year. Our overall passenger numbers have shown a significant increase on the same period in 2022 with total passenger handled across our airports of 11.4 million for the period January to November – almost 33% higher than the same period in 2022. The traffic through our airports in the summer season was close to that experienced in 2019; in fact, Salalah Airport’s passenger numbers of 1.26million for the year to November are already ahead of the full year in 2022, and are 10% ahead of 2019 throughput.

In 2022 we witnessed the addition of several new routes to our network, coupled with the resumption of existing services post-pandemic. We are now seeing the benefits of this, as the growth in 2023 is being driven by the full-year impact of these new and returning routes.

Alongside this, we have continued to witness the expansion in our route network with the introduction of new services in recent months. The latest addition is the new service operated by Salam Air, demonstrating their commitment to expanding the route network from Muscat.

At the end of August, the airline inaugurated three times weekly flights from the Omani capital to Baghdad, with the route operated with the latest Airbus A320neo aircraft.

Salam Air New Route to Bagdad

Furthermore, in November we welcomed the Sudanese carrier Badr Airlines, who launched twice weekly services to Muscat connecting from Port Sudan international airport.

Bader Airline New Airline to Muscat

Cargo & Logistics The Route Development team has also continued its focus on air cargo recognizing its strategic importance for both Oman Airports and for the continued economic growth in Oman.

Cargo throughput has continued to grow with overall cargo handled for the year to November at 153,000 tones, a 6% increase on the same period last year.

In the past twelve months, the team have been working on implementing an air-sea corridor initiative alongside the Port of Salalah. The initiative was launched with the aim to enhance the efficiency of the air cargo system across Oman and position the Country as a pivotal link in the logistics sector.

One early success of the initiative was the announcement in September of a ‘logistics solution’ for moving cargo from Sri Lanka to Egypt via Oman. The collaboration is expected to reduce transit times by up to 40% through facilitating prioritized bookings, loading, clearances and airlifting. It is hoped this will be the first of many such partnerships utilizing the strategic location of Oman, and the flexibility and efficiency of the port and airport cargo ecosystem.

The cargo shipment arrived to Salalah port “air-sea”

The logistics sector at Muscat has also been boosted by the inauguration of a new advanced courier and parcel facility for Aramex. The facility, located next to the airport, was opened in November and will further enhance and streamline the shipping process for packages arriving and departing Oman.

Aramex New Wearhouse Opining Event

Route Development Updates

Route Development on the Road The route development team remains engaged with airline meetings and industry events, and this has continued through the second half of 2023. Participation at these events is as crucial as ever for Oman Airports, providing an opportunity to showcase the potential of our airports and the broader developments and initiatives across Oman that bolster growth from airlines, cargo operators and for tourism.

The annual World Route Development Forum took place in Istanbul in October, with the world’s airline and airport route development

World Routes 15 – 17 October 2023

experts in attendance. The Oman team hosted an exhibition stand which showcased the opportunity that Oman offers to almost 2,000 industry delegates. The event also provided the opportunity to meet with a range of current and future airline partners, and the team hosted over forty meetings with passenger and cargo airlines to discuss new route opportunities.

The team also attended the second IATA slot conferences of the year, held in Dubai. As always, this event provides further opportunities to engage with airline partners to discuss ongoing operational plans and to allow conversations with the route development team’s primary passenger and cargo airline targets.

IATA I53rd Slot Conferences 14 - 17 Nov 2023

Route Development Updates

The Route Development Team also travelled to London for the annual World Travel Market event which brings together the worlds tourism industry – with a particular focus on buyers and operators in the European market. The team supported Oman Tourism who use the event to showcase their offer and highlight the current and future developments that will attract tourists and visitors.

WTM 6–8 November 2023

This is a perfect example of two key Omani stakeholders working in partnership with a joint approach that demonstrates to potential airlines and tourism business partners the cross-industry support available to grow the market to Oman.

As always, the cargo team have also been communicating all of the positive developments and the significant potential for cargo in Oman at a number of events in the second half of this year – specifically at Air Cargo South East Asia when the team traveled to Singapore in November.

Air Cargo South East Asia

Muscat Duty Free

Message from VP NonAeronautical

As the number of passengers passing through our airports increase, and as we reach the levels experienced in 2019, there continues to be a need to ensure that the passenger experience at our airports serves our growing throughput.

As such, the Commercial Team never stands still, and we continue to explore new opportunities for both shopping and dining at our airport that further enhance the commercial offer and provide more choice to our passengers. In recent months we have launched new products and services in all areas of the business, whether that is on departures airside, in the check-in area, or on arrival.

Supported by the Integrated Marketing Team, we also work to engage with our customers both to raise awareness of what is available at the airport, and to provide an experience as passengers travel through, and we have a number of campaigns running in this regard.

And in 2024 we will continue to explore innovative approaches to engage with our passengers, and to offer choice and competition in the services and products that are offered. It is important to assess the trends and programs in place across the wider travel retail sector, so that we can always ensure the offer at Oman Airports leads the sector.

Retail Commercial Team

The second half of 2023 has continued to see new products and services being made available to passengers, alongside developments that support our commercial objectives”

Faisal Al Mamari Vice President Aeronautical and Non-Aeronautical Revenue

Retail Commercial Updates

Commercial Development

The second half of 2023 has continued to see new products and services being made available to passengers, alongside developments that support our commercial objectives.

In terms of products and services, Travelex – the currency exchange provider – have opened a new unit in the immigration area of the airport which as well as offering the standard foreign currency exchange facilities, also provides the option to make payment for the visa on arrival to enter the country.

This new addition complements the introduction of Travelex’s ‘on the move’ kiosk at Muscat Airport earlier in the year, which provides services in different locations such as premium lounges and airport hotel.

Both of these additions are part of a broader global expansion by Travelex of their airport services – and is an indication of the strong travel demand globally, and the importance of Muscat within their airport portfolio.

Seal & Go Baggage New Location

3D screen at the arrival

Travelex E-visa counter at Arrival Pre-immigration

An important element of our commercial services is to understand and respond to passenger comments and demand. The Seal&Go baggage wrapping service is one example of a response to passenger feedback. The unit has now moved to a new location (Gate A) which as well as offering an improved location for passengers, also provides better exposure to potential business and economy class customers. The unit continues to provide wrapping services for baggage, but also larger boxes and pallets for cargo shipping.

Advertising at the airport is an important element of our commercial services, and a major step has been taken by our advertising partner JCDecaux Oman. They have unveiled a ‘state-of-the-art’ digital advertising screen in the arrivals area of Muscat Airport. The screen is 3D enabled to enhance the engagement with passengers, and adds to the diversity of advertising solutions at the airport, and increase the options for potential advertisers looking to promote their brands. The screen also has a lower energy consumption which supports our sustainability objectives.

Retail Commercial Updates

Looking forward, there are a number of projects and new service offerings on the horizon for the end of 2023 and early into next year.

A new luxury watch outlet is planned to be opened airside in the departures area which will complement the existing options. Also in departures, but landside, new ticketing counters are to be opened under the House of Travel brand with these expected to be operational by the end of 2023.

Vodafone Outlet

On arrivals, the new Vodafone outlet is due to be completed and opened early in the new year, and will bring the number of telecom providers to four, increasing the choice and options for arriving passengers.

Finally in terms of new products, for the staff working across the airport community, a new laundry service is set for opening in 2024.

The team have attended a number of events which bring together airports, brands, concessionaires and business partners from across the travel retail industry. This is a great opportunity to showcase the growth of Oman Airports and the opportunities presented to the world’s leading travel retailers and brands. This ensures that the right products, services, brands and outlets – both food and beverage and retail – are attracted to Oman Airports, and we can provide the best offer to our passengers.

The team travelled to Dublin to attend the FTE event which focuses on the future travel experience for passengers at airports. The TFWA event in France specifically targets the tax free and duty-free sector whilst on the other side of the commercial offer, the FAB conference in Bangkok focusses specifically on the food and beverage offer and the hospitality sector.

Finally, the trinity forum in Hong Kong is an annual event that is unique in that it focuses on bringing airports, retailers and brands together to discuss and explore how to enhance the offer and experience for passengers.

The Trinity Forum 25-26 October

Commercial Marketing Activities

An important element that ensures the success of our commercial activities is the continued promotion of our existing facilities to raise awareness to passengers of the products and services that are available.

A range of activities are undertaken throughout the year which includes in terminal actions, advertising and promotion, and online digital campaigns. In the past few months three key awareness campaigns have taken place.

Over the busy summer period between May and August, the team developed a campaign to focus on promotion of the Majan lounge and the range of services available in the lounge that have been enhanced in recent months. The campaign focuses particularly on digital content through Twitter and Instagram, with striking images of the lounge and services available, plus discounts and offers targeting the passenger.

Marketing Campaigns YMA G AU

Majan Lounge Campaign

VNO C DE

AUG P SE

Car Park Campaign

TAV Service Campaign

A similar campaign is also currently running to promote use of the airport car park – specifically the P2, P3 and P5 parking areas offering both short and long term stays. The promotion is across all media channels – both online and offline – and will be running into 2024.

Finally, aligned with both the carparking and Majan lounge is the recently launched campaign promoting the Primeclass meet and greet services. The aim is to raise the awareness of this premium service, highlighting the range of the offer for both arriving and departing passengers.

Alongside the awareness campaigns the Integrated Marketing Team also supported the Commercial Team to raise the profile of Oman Airports within the travel retail sector at the range of events and exhibitions, ensuring the appropriate messaging and highlighting the commercial potential at our airports.

The Future Activities for 2024 and Beyond

As passenger and cargo numbers both in Oman and globally are back at pre-pandemic levels, it’s now time to look forward and as we move towards 2024, it is more important than ever that the route development team continues to work closely with all our partners and stakeholders.

Our aim is always to maximise the success of both new and existing passenger services at our airports, and exploring new strategic opportunities in the both the passenger and air cargo sectors that will help drive our airports forward and support the continued growth of our countries economy.

Given the resurgence of the tourism sector both globally and in across the region in 2023, it will be important to work with our partners to maximise the opportunities for tourists to visit Oman, not only in the traditional travel periods, but to look at providing options that extend the holiday season.

As always, the aim is to continue to explore growth opportunities for the business through 2024 and we look forward to sharing more news about new routes and commercial ventures.

The Team

Integrated Marketing

VP Business Development

Director Integrated Marketing

Retail Marketing Specialist

Airline Marketing Specialist

Marketing Specialist marketing@omanairports.com