Royal Jordianian Drops Five Routes

Royal Jordanian Airbus A320

Royal Jordanian Airbus A320

Royal Jordanian Suspends Service to 5 Destinations

The Arab spring and political unrest has resulted in reduced bookings at Royal Jordanian Airlines.  To manage losses, five under-performing routes have been suspended from their route network.  Between the political unrest, increase of fuel prices and a drop-off in tourism to the region, mainly from Europe, it was announced these measures were necessary to keep costs under control.

At this time Royal Jordanian has suspended flights to Brussels, Munich, and Alain, effective as of March and April respectively.  Two additional destinations in the Gulf area are scheduled to be dropped, but the announcement will be made at a later time.

Royal Jordanian CEO, Hussein Dabbas, stated in order to reduce costs, it was also necessary for the company to reduce frequencies between Amman and Rome, Vienna, Zurich, Geneva, Amsterdam, Colombo, and Khartoum.

In a written statement, the airline indicated it will cancel more flights during the year based on bookings, and will tightly control capital expenditures.  Dabbas also stated the carrier will also reconsider their fleet size, pointing out financial results were adversely affected in 2011 because of rapid increases in jet fuel prices.  The airline, like others in the region, was also forced to temporarily close some of its stations such as Tripoli and Benghazi; at the same time, traffic took a nosedive to destinations including Tunis, Damascus, Aleppo, Sana’a, Aden, Bahrain, Cairo, Alexandria and Sharm El Sheikh.

Taking everything into account, Royal Jordanian faced an increase of operational costs by 20% with only a 6% increase in 2011 revenues.   The decision to cut routes was also largely based on tourism forecasts to Jordan and the Middle East declining, which has already been noticed in the first quarter of 2012.

Royal Jordanian will make additional announcements as decisions are made.

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