Proposal for Management

Oman Airports Management Company is a government-owned organization involved with the running of two airports, Salalah and Muscat. It manages facilities, customer services, capacity, marketing, and communications and also provides aid in the control of finances and revenue collection. Through the years, Oman continues to face the issue of the rapid increase of passengers, which seems to overwhelm the existing capabilities and capacity of the two airports. Salalah is set to get a ranking among the world’s top ten airports on the level of more than two and a half million. Muscat, on the other hand, continues to experience an annual average growth of 13% which is slowly becoming unsustainable unless the company takes adequate measures to address the issue sufficiently. It is, therefore, becoming problematic for the management company to keep up with the rising numbers that may result in reduced customer satisfaction through the change of routes, reduced frequency of service among other side effects.

There are two possible strategies applicable as a solution to OAMC’s persistent problem of demand. Firstly, the company can decide to build capacity by increasing the number of runways or developing entirely new airports. This strategy allows the company to initiate plans for growth while at the same time handling current customers. Secondly, the company can decide to manage flight demand by employing instruments such as the change in pricing, caps and other regulations that reduce the frequency of congestion in an airport, which, might be unhealthily costly for the organization in the long run. In employing this plan to manage demand, OAMC might also consider streamlining customer service in the quest to keep all customers in the know concerning updated services on routes and their frequencies. Using these tools will be crucial in allowing the administration to serve as many customers as possible without creating unnecessary jams throughout the work areas.

The problem of demand exceeding capacity and current capabilities is one that affects customers directly. It becomes challenging to balance the number of trained employees with existing clients. The pressure automatically impacts the type of services rendered as check-in areas and lounges will continuously be in congestion mode allowing minimal movement, thereby inconveniencing many persons. Also, there is a high risk of change in the routes served and their frequencies, as any of the strategy employed by OAMC will center on reducing the chances of delays and air congestion, whether expected or unexpected. This rising demand may also require OAMC to be more vigilant and implement additional policies regarding near-aircraft driving rules, runway regulations, and other warning signs to ensure that the high population within the airports is well under control to avoid unnecessary accidents.