AMMAN — The Royal Jordanian (RJ) halved its losses in 2021 compared with the figures of 2020, where the national carrier is expected to reach a balance point in 2023 through implementing a pack of growth and expansion procedures, RJ President/CEO Samer Majali said on Saturday.

 

In an interview with the Jordan News Agency, Petra, Majali noted that the RJ is "still waiting for government support to enable the airline to overcome losses due to the COVID-19 repercussions".

 

Majali said that RJ will not have the capability to compete and grow in the future if the government, whose contribution in the company now stands at 85 per cent, does not support the airline.

 

On the airline's current financial situation, he said that the pandemic-related repercussions cost RJ JD160 million in losses in 2020.

 

Losses will soon affect the RJ's capital, which calls for "urgent" government intervention to save the airline that "suffered losses beyond its control" during the pandemic, Majali said.

 

The CEO said that RJ requested government financial support worth JD200 million to increase its capital, stressing that the government has the responsibility to support RJ as a strategic tool for the Jordanian state to maintain operations worldwide.

 

RJ did not receive any support for its losses during the pandemic, unlike international airlines that received assistance from their successive governments.

 

The RJ president said that all Jordanians have responsibility towards the airline, especially since travelling through the national carrier means that 90 per cent of the ticket value is pumped into the national economy.

 

He added that RJ recently endorsed a five-year plan that aims to reach 60 international destinations, up from 35 now, and build a regional aviation network through Amman, noting that the company will also increase its fleet from 24 to 45 airplanes.

 

Majali said that RJ resumed its flights to Moscow, Copenhagen, Geneva, and Zurich by two flights per week, after these flights were suspended due to the pandemic, adding that the company has introduced a new trip to Najaf in Iraq. 

 

As for competition with low-cost airlines, Majali stressed that RJ would be able to compete with these companies through supporting group tourism to and from the Kingdom if RJ was granted the government support and incentives granted to these international low-cost carriers. 

 

He also praised the roles of the government and Social Security Corporation in providing social protection for RJ employees and ensuring the sustainability of its activities and operational processes, noting that RJ is going on with implementing the Estidama programme that the government launched in cooperation with the corporation.