Royal Jordanian prepares new 10-year plan as 787s enter; narrowbody renewal & expansion to follow

Royal Jordanian is preparing a new 10-year business plan aimed at restoring profitability through network adjustments and fleet renewal. The carrier has been significantly impacted by the political instability in the region as Egypt, Lebanon, Libya and Syria are among its biggest markets. But Royal Jordanian's strategy of focusing on connections within the Levant and Gulf regions remains intact as it views its current reliance on Europe-Asia transit traffic, which comes with unsustainably low yields, as temporary.

The new business plan will again focus primarily on regional growth, with replacement and expansion of its single-aisle fleet from 20 to about 30 aircraft. Royal Jordanian is now looking at acquiring A320neos as well as Embraer E-Jet E2s or Bombardier CSeries.

Previous plans to expand the widebody fleet from seven A330-200/A340-200s to 11 787-8s will likely be dropped, resulting in the sale or cancellation of its last four 787 orders. Royal Jordanian is phasing out its A340s in late 2014 as it takes its first five 787s, leading to much needed efficiency improvements, and plans to phase out its A330s in 2016 as a second batch of 787s are delivered.