Airport taxi fares to be cut in Oman

 Airport taxi fares could be cut by 50 per cent after Mwasalat takes over, the firm’s CEO has said.

Taxis from Muscat airport are currently among the most expensive in all the GCC countries, with rates starting from OMR6, more than twice as high as Dubai and Abu Dhabi, where the fares begin from OMR 2.5. 

“We plan to start the new airport taxi fares from OMR3. That’s our target,” said Ahmed bin Ali Al Bulushi, CEO of Mwasalat, which will take over the running of services from the airport from the third quarter of 2017.

Speaking to Times of Oman, he said achieving that rate is still a work in progress. “The fares haven’t been agreed by taxi drivers and negotiations are going on,” he said.

The reduction of the rates comes at a time when competition for fares is increasing following the launch of the city’s new bus service which passengers have hailed as a success.

The CEO said Mwasalat has already issued a formal notice inviting Omani taxi owners to join its fleet for operations from the airport. “Once the technology is ready, we will announce our fares,” he said. Mwasalat said citizens wishing to join the airport fleet will need to have a valid driving licence and should be between 25 and 60 years of age.

“They should pass the mandatory medical tests and the vehicle’s life must not exceed five years and the engine capacity should not be less than 1.8 liters,” said Mwasalat, in a notice issued by the transportation company.

Ahmed bin Ali Al Bulushi expects 500 taxi drivers to join them.

“So far 130 taxis from the airport and about 250 in malls and on-call have agreed to be part of Mwasalat. Initially there should be 350 to 500 taxis by the end of this year, or early next year,” he said. Mwasalat is recruiting teams as it works to launch the new service and liaising with different authorities, such as the Ministry of Transport and Communication, ROP and the Oman Airports Management Company.

However, airport taxi drivers are not very happy. “We don’t mind the taxi fares to start from OMR3 but Mwasalat is asking us to give 12 per cent of our daily collection. This is unfair as they will not be doing anything. They will be just managing us. So 12 per cent of our share is very high,” Mohammed, an airport taxi driver said.

Mwasalat’s CEO also confirmed that the taxi drivers will get 88 per cent of the total earnings. “In 12 per cent, Mwasalat will just recover the cost of employees, technology and training,” Al Bulushi said.

However, the drivers are willing to pay some money to Mwasalat, “but it has to be yearly or monthly and not a percentage from our daily earnings,” another airport taxi driver said.

Justifying the high fares, one cab driver said that Oman’s airport taxis provided a luxurious service with the latest cars.

“That is one of the reasons we charge more than the other GCC countries,” he said.

Citizens and residents are, however, very happy. “Currently, the airport taxi fares are too much and people think twice before taking it, so it is a great idea to bring it down to OMR3,” Sushma, an Indian expat living in Oman said.

According to the UBS Prices and Earnings 2015 report, the Norwegian capital of Oslo has the most expensive taxi fares in the world, where a five-kilometer ride will cost $32 (OMR13.2).

Oslo is closely followed by Zurich $27.59 (OMR10.5), Luxembourg $22.34 (OMR8.5), Geneva $20.58 (OMR 7.8), Auckland $19.72 (OMR7.5), Stockholm $18.56 (OMR7.1), Montreal $17.57 (OMR6.7), Milan $17.3 (OMR6.6) and Amsterdam $16.22 (OMR6.2). Among the Gulf countries, Dubai and Doha are included in the UBS Prices and Earnings 2015 report.

In Dubai, the airport taxi rates start from $6.26 (OMR2.4), while in Doha the rates start from $3.66 (OMR1.4).

The report also indicated that taxi fares charged at New Delhi’s Indira Gandhi International airport in India are the cheapest in the world, with fares starting at $1.54 (OMR0.500), followed by Kiev $1.59 (OMR 0.600), Bogota $1.71 (OMR 0.650), Mumbai $1.81 (OMR 0.700) and Bangkok $1.81 (OMR 0.700).

The report included prices for a five-km ride during the day within city limits, including a service tip.

Source: Timesofoman