Oman is said to be considering to launch a new regional airline called Oman Link that would take over the domestic routes form the flag carrier Oman Air.
Oman Link would serve four domestic destinations and linked with Oman Air. The new airline would later possibly take over some regional routes as well.
Here’s map of the Arabian peninsula
Here’s an excerpt from Arab News (access their piece here):
A request for proposal was issued this month by state entity Oman Aviation Group for a feasibility study into operating the new airline, ‘Oman Link,’ the sources said.
Setting up a new airline for domestic flights would allow Oman Air to focus on its international network where it competes with large Gulf carriers Emirates, Qatar Airways, and Etihad Airways.
The new airline could partner with Oman Air with both carriers connecting passengers to each other but would have its own independent management, the sources said on the condition of anonymity because the details are private.
Flydubai became part of Emirates (the same entity always owned them), Etihad is launching AirArabia based in Abu Dhabi, and now Oman is planning to have their regional one.
Not sure how much connectivity need there is for flights within Oman. I would think that the main goal would offload the thin regional routes to the Link and have Oman Air running the essential regional and long-haul destinations.