07-Jun-2011 4:40 PM
Royal Jordanian seeks Dreamliner compensation
Analysis
Royal Jordanian has confirmed it is seeking damages for delays in the delivery of the 11 B787s it has on order. The carrier was one of the first in the Middle East to order the aircraft and has seen the delivery date of its first B787 pushed back by almost four years, to 2014.
The carrier is filling the capacity gap by leasing A330s, and is keeping older A340 in its fleet. However, it is struggling to cope with higher than expected oil prices: the airline had based its operations on an average price of USD85 per barrel, USD15 per barrel below current prices.
Shares in Royal Jordanian were up 5.2% yesterday, leading a stronger day for Middle East-based carriers.
Selected Middle East/African airline share price movements (% change): 06-Jun-2011
