AACO meeting at Dead Sea showcases Jordan’s strategic position in aviation industry

AMMAN — Under the patronage of His Majesty King Abdullah, the 57th Annual General Meeting of the Arab Air Carriers Organisation (AACO) , hosted by Royal Jordanian (RJ), underscored Jordan's pivotal role in shaping the future of regional aviation.

Taking place at the Dead Sea from October 29-31, the high-profile event attracted over 200 industry leaders and specialists, including CEOs from AACO member airlines, key partners, and stakeholders from the Arab and international aviation sectors.

Samer Majali, vice chairman and CEO of Royal Jordanian, emphasised the symbolic significance of hosting the event at the Dead Sea, showcasing Jordan’s resilience and position as a strategic link between East and West and highlighting the steadfast support of His Majesty King Abdullah and the government, which has bolstered RJ’s role as a key player in regional aviation.

The event was attended by Minister of Transport Wesam Tahtamoni, who deputised His Majesty, alongside Minister of Tourism Lina Annab and Minister of State for Economic Affairs Mohannad Shehadeh, included working sessions followed by the Arab Aviation Summit, which featured a high-level panel discussion addressing key industry issues. 

Speaking during a press briefing on the sidelines of the event, Majali addressed the turbulence surrounding Airbus and Boeing, which has impacted the national carrier’s fleet renewal strategy and its ability to upgrade to more fuel-efficient, cost-effective aircraft.

Majali stressed that “hosting the 57th Annual General Meeting of the AACO carries significant weight, especially given the current regional circumstances, and the broad participation reflects the security and stability of Jordan.” 

Majali said that RJ is set to receive 16 new Airbus aircraft in 2025 while retiring around 13 older planes, highlighting the airline plans to introduce two Embraer aircraft and two Boeing 787-9s into its fleet.

Addressing the operational realities of delayed fleet renewal, Majali noted that RJ has a standing order with Boeing for 787-9 aircraft and currently operates a fleet of seven of these planes, adding that the airline has ordered nine more, with deliveries initially expected in May 2025 now pushed back to September and December of that year.

Majali also noted that Airbus is also experiencing delivery delays, further complicating RJ’s fleet renewal plans. 

“By the end of 2025, nearly the entire small and medium-sized fleet of Royal Jordanian will be updated, marking the beginning of the modernisation of the larger fleet as well,” he added.

Majali also said these delays are affecting both operational costs and revenue potential, adding "With the new aircraft delayed, the airline is forced to prolong the lifespan of its older fleets, resulting in higher maintenance expenses." 

Majali also highlighted that amid regional turbulence, costs are escalating, straining the national carrier’s budget, which is already grappling with fluctuating demand.

“Following Palestine and Lebanon, Jordan stands as the third-most impacted country economically by the ongoing Gaza War, and is especially vulnerable to the pressures of its aftermath,” he said.

At the onset of the Gaza conflict in October of last year, RJ experienced a loss of approximately 30 per cent of its bookings during the initial days of the conflict, he added. 

“Demand for flights to Jordan has significantly decreased, as the global perspective treats the region as a cohesive unit, failing to distinguish Jordan from its neighbouring countries,” he explained.

 Majali also said that the decline in air travel not only affects the tourism sector but also has broader economic implications, impacting revenue for airlines, local businesses, and the overall economy, which relies heavily on international visitors and trade.

RJ is facing increased costs despite a decline in fuel prices over the past year, primarily due to changes in flight routes that add approximately 20 to 30 minutes when passing through Syria or Egypt, he said, noting that operational expenses have risen by nearly 10 per cent.

The closure of airspace in response to missile threats crossing over Jordan poses serious operational challenges for RJ, further straining its financial performance and complicating its ability to maintain reliable service amidst ongoing regional tensions, Majali said.