Analysis on the Organizational Structure of Oman Air - Essay Example

Download file to see previous pages The Sultanate of Oman’s Civil Aviation founded the Oman Air, which began its operation in 1993. Prior to that event, in the year 1970, the Oman International Services was inaugurated. It was followed by the establishment of Oman Aviation services on 1981 with an aim to expand its services offered to other airlines such as in cargo handling and ground handling. With the operation of Oman Air, this company was responsible for creating a traffic hub in Muscat, which led to the growth of the tourism industry, commercial, and industrial. The company first offered direct flights in Colombo and Dubai, then succeeded by Trivandum, Kuwait, Karachi, and Sri Lanka from 1993-1994. In 1995, it started to open direct flights in India, Bangladesh, and Dhaka. The destination offered expanded, but it started to limit its operation since 2003. In 2005, it commenced to offer other destinations until it expanded internationally. Oman Air was introduced as the new identity of Oman Aviation Services (SAOC) on April 21, 2008 (Oman Air, 2012e).
The company commits itself in providing quality services to its target markets,
which is construed by 28 awards they received from the independent sector. The company was recognized as the Best Airline Worldwide 2011 based on the survey conducted by the travel magazine (Oman Air, 2012f). SWOT Analysis Strength Oman Air has monopolized the airline industry since it is considered as the national carrier within the country. There is no competition involved because the government owns 99.825% while others have a percentage of 0.175 (Oman Air, 2012a). The government is primarily bounded in its marketing campaign, which will increase the tourist in Oman. Since it is the flag carrier of the Sultanate of Oman, it has been widely known in the country. The market presence of Oman Air is relatively high. Moreover, Oman is notable for its hospitality. The company desires to render comfort for customers while they travel across the countries. Furthermore, Oman Air leaves an impression of their services based on the international standards with emphasis on quality and safety. Oman Air was the first airline that offered satellite telephone and internet connection. The investment in green technology strengthened the brand name of Oman Air because modern facilities and aircraft reduced carbon emission. Weaknesses The internal structure of Oman Air reflects its weakness. Due to the poor performance of every department, the profitability of the company is affected. The large organizational structure of the company needs good leadership and management. The departmentalized structure divides the attention of the CEO, which weakens the interdepartmental communication. The poor management of HR resources in recruiting technical and administrative tasks leads to the poor performance of every department. It results to the staged strike by the Oman Air employees, which aim for higher wages (Pollack, et al., 2011, p.181). The conflict inside the Oman Air is influenced by politics regarding on poor management and corruption. The strike reminds the employers to provide opportunities for employees. Lastly, the culture of Oman Air has not yet altered despite the deviation in the cultural background of its staff. Opportunities Monopolization in the airline industry provides opportunities for the business operation of Oman Air. This company is the only air carrier that offers services globally. When there is no competition, the company can be secured of its profitability and sales. Oman Air has no apprehension on the prices of air fare. Thus, Oman Air caters to the large market of travellers in its country. According to Rajasekar and Moideenkutty (2007, p.128), the population of travellers in Oman is about 800, 000. Furthermore, modern facilities such as “new passenger terminal, a brand new cargo terminal, new engineering facility, and in-flight catering facility” can elevate the profitability of Oman Air. The customers’ ...Download file to see next pagesRead More