Friday, April 1, 2016

SATS and Oman Air form cargo-handling JV

SATS announced on Thursday night it has entered into a joint venture agreement with Oman Air SAOC (Oman Air) for cargo handling at Muscat International Airport.

Under to the agreement, Oman Air will transfer its cargo handling business and related assets to its wholly-owned subsidiary Oman Air Cargo LLC.

SATS will then acquire from Oman Air 165,000 Oman Air Cargo shares at OMR 1 ($3.50) each or a 33% stake, for OMR 6,369,000 ($22.5 million).

The joint venture company will then be renamed Oman SATS Cargo LLC.

Oman SATS Cargo is expected to start operations during the second quarter of 2016. It will become the single source provider of cargo handling services first at the existing cargo facility and then at the new state-of-the-art cargo terminal in Muscat International Airport.

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