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15-Apr-2016 1:35 PM

Royal Jordanian commenced 'real transformation' in 2015

Royal Jordanian chairman Suleiman Al-Hafez said (14-Apr-2016) 2015 marked the beginning of a "real transformation" process for the airline. The carrier aims to maximise revenue and reduce expenses under its 2015 to 2019 business plan, which includes the following initiatives:

  • Network and fleet: Eight routes suspended due to lack of feasibility and another eight suspended for security reasons. Ankara, Jakarta, Guangzhou, Najaf and Tabuk services launched in exchange. Older aircraft phased out and five Boeing 787s introduced;
  • Traffic and market share: The airline aims to increase origin and destination and transit traffic and improve its local and international market share;
  • Revenue management: The carrier implemented a number of measures to increase revenue, with a focus on ancillary revenue;
  • Fuel: The airline is implementing several initiatives to reduce fuel consumption, including fleet renewal and ongoing price negotiations with suppliers;
  • Aircraft ownership: The carrier will study operating and financial lease options to determine the best way to meet its needs and achieve its interests.
  • Debt restructuring: The company closed a five-year USD275 million loan facility at the end of 2015 to be used to pay existing bank debts and support short and medium-term growth and turnaround plans, particularly fleet modernisation. [more - original PR]

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