Jordan’s national airline has serious financial problems. He needs money from the state. Nevertheless, Royal wants to renew the Jordanian fleet.
State aid for airlines has become somewhat common in the pandemic. Countries gave billions of rupees to airlines so that they don’t go down because of the crisis. Even the previously financially successful Lufthansa Group received a total of nine billion euros.
On the other hand, $71 million doesn’t sound like that much. This is the only aid Royal Jordanian Airlines has received from the state in recent years. The cash injection had nothing to do with the pandemic and was already approved. But this is not enough for the airline.
Decision on new fliers in January
In several interviews these days, Managing Director Samir Majli said that his airline was anything but good. “All the airlines have got support from their governments, not just us,” he told Reuters news agency. “Half-baked and temporary patchwork solutions will not work. Either there is a serious investment in Royal Jordanian or the airline has no chance of survival.”
They are back on almost all routes and expect losses to be reduced by 55 percent in 2022 and even out of danger again in 2023. But investment is also necessary, without which his airline would have no chance, Majali said.
money should flow soon
They want to at least partially compensate for the damage caused by the pandemic and allow themselves to order new aircraft. According to Bloomberg news agency, Majli has not refurbished the fleet for ten years.
Specifically, the Royal Jordanian wants $282 million from the state. The first half of the funds will be needed very soon to survive the first half of 2022. The rest should follow later.
Decision on new planes in January
According to its boss, the airline is about to make a decision on the renewal of its short-haul and regional aircraft fleet, which is expected to be announced in January. Both Airbus and Boeing models are eligible. But he also finds Embraer’s regional jets interesting, Majali says.
New aircraft are likely to be leased. But shopping is also an option.
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