RJ calls for immediate assistance to surmount losses of JD321m

AMMAN — Royal Jordanian (RJ) CEO Samer Majali on Tuesday called for immediate assistance to help the national carrier overcome accumulated losses of JD321 million. 

The company lost its main revenues after privatising some of its businesses, Majali added during a meeting with the Lower House Tourism, Antiquities, and Public Services Committee, the Jordan News Agency, Petra, reported. 

He also pointed to the fuel monopoly and the “exorbitant costs” as reasons for the company’s losses, as well as the failure to provide Royal Jordanian with any preferential or special treatment, despite the fact that it competes with government-subsidised regional airlines. 

The company's accumulated losses, according to the CEO, totalled JD321 million, or 99 per cent of its capital, of which JD161 million is a direct result of the pandemic, during which air traffic was nearly halted. 

Majali also told lawmakers that the company is currently involved in  talks with the government to raise its capital by around JD70 million. 

He said that the company is reevaluating the destinations to which it flies and plans to increase the number to 60 destinations around the world, in addition to updating its fleet, as part of its strategic plan for the next five years. 

Majed Rawashdeh MP, head of the committee, highlighted the importance of supporting RJ for its role as a national carrier to enhance the Kingdom’s status as a strategic transit destination, and support the national economy through stimulating the tourism, transport and air freight sectors.