Amman, June 14-2021 -- Royal Jordanian is implementing a restructuring plan aiming at decreasing the negative impact of the pandemic, as part of the efforts exerted to mitigate the effect of closures and lockdowns imposed by governments around the world since the outbreak of the COVID-19 crisis.
The goal is for the airline to reduce losses anticipated for the forthcoming years and provide the necessary liquidity to fulfill its commitments and finance its operations.
RJ Vice Chairman & CEO Samer Majali said: the plan’s main focus is to review the size and capacity of our fleet and to mitigate its high costs in view of the reduced utilization of the aircraft during the COVID pandemic and post pandemic period. This will reduce the financial impact of aircraft ownership, particularly since aircraft leases make up 47% of the airline’s fixed monthly costs.
Majali said that RJ has reached agreement with one of its larger lessors and is in the final stages in negotiations with three other lessors, which it is hoping to conclude shortly. This move will help the company secure some $40 million cash relief in the coming three years.