Oman Air, the national carrier of the sultanate, is not planning to set up a low-cost or budget airline, the airline's chief executive officer Paul Gregorowitsch said.

If Oman Air wants to start a low-cost carrier, it has to secure licences and permission to fly to several destinations in other countries, Gregorowitsch was quoted as saying by the Arab News.

"This can be taken from the existing carrier (Oman Air), which at the end of the day may not make any business sense," the Oman Air CEO said.

Gregorowitsch also said that Oman is contributing to the sultanate’s economy like other transport projects, which include railways and expressways.

He said Oman is investing heavily in infrastructure catering for the future with a clear vision on how transport and communication should develop.