Oman to increase air traffic fees in state revenue push
Muscut : Oman's Public Authority for Civil Aviation (Paca) will raise fees charged for air traffic through the sultanate, the authority's chief executive Mohammed al-Zaabi told the official Oman News Agency.
The decision is part of a series of steps by Oman to strengthen state finances. In January, Oman cut domestic gasoline price subsidies; earlier this month, it raised prices of water for state, commercial and industrial users, and it is about to cut liquefied petroleum gas subsidies for such users.
The new aviation tariff is expected to increase Paca's revenues by more than 25 per cent, improving the sector's contribution to the state budget, Zaabi said in a statement.
He told Reuters by telephone late on Saturday that the new tariff would be based not merely on the weight of aircraft, as at present, but also on other factors such as distance.
"This year we were expecting revenues of RO50 million ($130 million). With the new tariff, we expect to add around 30 per cent more. We expect another RO15 million."
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