Cabinet stresses support to the royal Jordanian

The Cabinet was briefed on Wednesday about the challenges facing the Royal Jordanian Company, which accrued losses running into JD90.2 millions in the first six months of this year.
During a cabinet meeting held under the chairmanship of Prime Minister Abdullah Ensour, Royal Jordanian (RJ) chairman, president and CEO, Nasser Lozi, attributed the challenges facing the company's business to the political and security conditions in the region, which led to a decline in air traffic in and out of the Middle East in general.
Lozi outlined the strategic plans, which are to be implemented by the Royal Jordanian, to deal with these challenges, as well as the decisions to be executed and reforms to be ushered, in the light of the company's ordinary annual general meeting (AGM) three days ago.
The AGM was held in the presence of the Board of Directors, the companies' general comptroller, auditors and shareholders who own nearly 64 percent of the JD84.3 million shares capital.
He added that the main challenge facing the RJ is the weak capital base, which contributes to an increase in operating and leasing costs and so an LBO (Capital Increase) is vital.
In this regard, the RJ's boss praised the government's decision to approve the capital increase by JD50 million and its approval of a plan to increase the capital of the company by an extra JD100 million over the next three years to raise the capital up to JD234 million.
He also praised the government's decision to allow the company to import fuel from any source and maintain the company's current investments and support within the air transport sector.
Lozi said that the company has reduced the number of aircrafts' fleet from 32 to 29 aircraft as the company will phase out certain old aircraft in conjunction with the introduction of energy-saving modern aircraft by the end of this year.
He pointed out that the RJ's contribution to the GDP in 2013 amounted to about JD5.378 million, or two to three percent, exceeding other economic sectors' contribution.
The government stressed its support for the National Carrier to overcome the difficult financial circumstances and will closely monitor the developments related to the performance of the company so that it can take appropriate decisions to support the RJ.
The prime minister said that the government will make every effort to assist the Royal Jordanian within the laws and regulations and through carefully considered steps, taking into account the economic situation of the treasury.
Ensour asserted the government's keenness to support major economic institutions, including RJ, and enable them to continue their important national role and support Jordan's economy, stressing the importance of maintaining the company's achievements over the past decades.