Amman, (Business News Report) – The loses of Royal Jordanian, airline company, have decreased by half in 2021, compared to its losses in 2020.
The CEO of Royal Jordanian, Samer Majali, said that the company reduced its losses last year, expecting to reach the equilibrium point next year by implementing a package of measures for growth and expansion.
Majali also confirmed that the company is still waiting for government support to enable it to overcome the losses it incurred due to the repercussions of the Coronavirus.
Majali warned that Royal Jordanian will not have the ability to compete and grow in the future if the government’s support is not available, whose contribution to the company reaches 85%.
He explained that the repercussions of the Coronavirus pandemic cost Royal Jordanian 160 million dinars in losses in 2020, in addition to accumulated losses in 2019 of about 80 million, bringing the total losses to 240 million.
Majali warned that losses are approaching the capital, “which requires urgent government intervention to save the Jordanian national carrier, which suffered losses outside its control and whose planes were grounded during the Coronavirus pandemic.”
He said, “We requested government financial support worth 200 million dinars to raise the capital,” stressing that the government has the responsibility to support Royal Jordanian as a strategic tool for the Jordanian state and to connect Jordan with the world.
He added that Royal Jordanian did not receive any support for its losses during the Coronavirus pandemic, like its counterparts from international airlines that were supported by their governments.
He also pointed out that the responsibility of supporting the company also lies with the Jordanians, as traveling through the national carrier means that 90% of the ticket value will be pumped into the Jordanian economy.
Majali also revealed that Royal Jordanian has approved a five-year operating plan that includes reaching 60 global destinations over the next five years, and building a strong regional aviation network through the capital, Amman.
In a related context, the company said that it had made extensive contacts with the relevant authorities within the United States of America and the International Air Transport Association to track the possible effects on standard procedures for flights to and from American airports during the past six months.