We took a short hop flight from Dubai to Muscat. We decided to fly instead of taking a bus because we were worried about crossing the border (the guidebook led us to believe there could be long delays). However, this might not have been necessary, as several people we met told us this is not a problem. The flight we took was a Swissair flight – originating in Switzerland, but going on to connect Dubai and Muscat. It was very cheap (<$100 US).
I think if you fly into Dubai on Emirates, you can easily tag on short-haul flights around the region for a very reasonable price. I think the Dubai-Muscat leg was also just USD 50 one way.
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