Oman plans to establish its first budget airline to boost tourism as the plunge in global oil prices encourages the country to diversify its economy. Muscat National Development and Investment Co (MNDIC) - a venture involving the Muscat municipal government and several state funds including the State General Reserve Fund, Oman’s top sovereign wealth fund - said it had been awarded an air services operator license by the Public Authority for Civil Aviation, Reuters reported. The airline will help meet the Persian Gulf Arab state’s strong air traffic demand and complement its real estate and entertainment projects, MNDIC’s chief executive Khalid bin Hilal al-Yahmadi said in a statement on Thursday. He did not reveal a time frame for establishing the airline or describe its plans to obtain planes. Last year, the government approved a restructuring of the country’s flag carrier, loss-making Oman Air, including the creation of subsidiaries and ventures to handle some businesses. That carrier, which has a fleet of about 37 planes, announced on Wednesday that it will launch a new route to Mashhad in Iran, home to the shrine of the eight imam of Shia Muslims, Imam Reza (PBUH).
