BAA pulls out of Oman

Dermot Davitt

Print Article E-Mail Article E-Mail Author

BAA said it was disappointed and cited problems reaching financial agreement over the privatisation of a new terminal at Seeb airport

BAA and its partners in the Oman Airports Management Company (OAMC) are to withdraw from their long-term agreement to manage Seeb and Salalah airports from November 17. The airports will return to government control.

BAA said the main reason for its withdrawal was that it had "proved impossible to achieve financial closure on the terms of the privatisation and the development of a new terminal at Seeb airport".

The company said: "BAA and its partners are disappointed that despite their considerable success and commitment to delivering new airport infrastructure, it was not possible to reach agreement. The OAMC partners will ensure a smooth handover process, prioritising safe, secure and efficient operations during the transition period."

OAMC took over the management of Seeb and Salalah airports in January 2002.

Aer Rianta International and its partner Oman Aviation Services operate duty-free at the airport, under the Muscat Duty Free name. General manager Stephen O'Connor said he did not expect any impact on the company's retail contract.

"OAMC as a legal entity still exists; it looks as though the shareholding will simply change. Our contracts are with OAMC so there should be no impact."

Full details and comment will appear in the November 1 issue of DFNI.