RJ's 46th Annual Conference
20-Feb-2010 Royal Jordanian Board of Directors Engineer Nasser Lozi expressed satisfaction with the results achieved by RJ in 2009; the airline registered a net profit of over JD28 million and total revenues exceeded JD570 million.
These achievements, he indicated, were attained despite the effects of the international crises, including the rise in oil prices, the collapse of the global financial system, a widespread economic recession, and sharp competition.
In his opening speech to RJ's 46th annual conference, held on Feb. 20 at the Four Seasons Hotel, Amman, Lozi said that Royal Jordanian achieved positive results in a difficult year. The International Air Transport Association (IATA) predicted over $11 billion losses in 2009 for world airlines. Cumulative airline industry losses over the past decade are estimated to have reached $50 billion.
"This year will be challenging despite initial signs of improvement. Increasing revenues, controlling costs and carefully matching capacity to demand are the keys to survival," mentioned Lozi.
He also pointed out that last week the RJ Board of Directors agreed on a number of decisions that aim at boosting the competitive position of the airline.
"The oneworld alliance, which we are a proud member of, is continuing to grow in airline numbers and passenger volume, and our membership in this prestigious alliance has started to pay off on many fronts. Passengers around the world are now more aware of RJ and its services. Our cooperation with the other members has opened up new avenues for us to increase revenues and reduce costs of joint services.
"We continue to seek new ways to work more closely with the other members to ensure that this multilateral relationship is beneficial to all parties involved," he added.
At the end of his speech, the chairman called upon the participants to invest in the success that the airline is continuing to obtain year after year, by increasing productivity, working hard, having strategic planning and enhancing the competitive edge.
"In order to remain competitive and profitable, we need to constantly adapt and evolve our approach, systems and processes," Lozi concluded.
In his presentation to the conference, RJ President/CEO Hussein Dabbas said that using the motto "Embracing Change and Excellence", RJ has embarked in the last five years on a program of continuous change and development that has witnessed upgrading the fleet, facilities, IT systems, service and staff training.
He also reviewed the operational indicators RJ registered last year.
He said that the airline was capable of achieving good results because it believes that investing in human resources is rewarding and offers passengers competitive services in the air and on the ground.
Dabbas said that RJ is considered an example of positive change, leading to excellence in work procedures and services. Proof of RJ's leading, competitive position was inviting it to become a member of the oneworld airline alliance, the first Arab air carrier invited to join any of the three global alliances.
RJ has a leading position in Jordan, covering 60% of the operations in the local market where 31 foreign airlines operate as well. This was achieved by introducing modern aircraft with high specifications of comfort and entertainment, the privilege of its membership in oneworld and the good reputation it enjoys locally and globally, said Dabbas.
Regarding future plans, the president indicated that this year RJ will operate a new direct route to Madinah Munawwarah, Saudi Arabia, and will resume operations to Kuala Lumpur via Bangkok. Moreover, in 2010, two new Airbus A330s will join the airline to operate on the Far East and London routes and a new Embraer 175 will be introduced to support the regional network. The airline will also refit the entire Airbus A340 fleet with new seats and in-seat in-flight entertainment.
He added that among the airline's plans, RJ will replace four Airbus A320 and two A321 with new aircraft between 2011 and 2012, and will prepare to receive Boeing 787s starting with 2013.
In the course of two days, the conference tackles the 2010 marketing and operational plans of the company. It also assesses RJ outstations' performance last year, with a view to creating sales and marketing tools and boosting the company's market share worldwide. International challenges, foremost among them the global economic crisis and competition, are also issues figuring high on the agenda of the conference.
RJ area and airport services managers, and the heads of departments will discuss the efficiency of the productivity system, and solutions and suggestions in support of the strategic plans meant to increase sales and open promising markets that fit the RJ route network and its young fleet of aircraft.