newswatcher
19th Jul 2002, 07:13
From the Dubai Gulf News(19/7):
"Jordan flag carrier Royal Jordan-ian has embarked on a major fleet modernisation to raise its competitive edge with global carriers and add value for a future strategic partner, the company's chief executive officer said yesterday. RJ's president and CEO Samer Majali was speaking before the arrival from Toulouse of the first of four Airbus A340 planes to be put in service soon on the carrier's long-haul U.S. and Asia destinations, replacing its ageing A310 planes.
Majali said RJ would soon decide between European plane maker Airbus and its main competitor Boeing Co of the United States to supply narrow-bodied planes for the medium and short-range routes. Officials say both makers are in tough lobbying at the highest political levels to sell RJ under long-term operating and financial lease terms secured under favour-able finance.
"We are currently in an evaluation between Boeing and Airbus regarding increasing our narrow-bodied fleet up to 9 or 10 from the five A320 that we have," he added.
"Either it will be totally A320-A321 Airbus or Boeing 737," Majali added, saying they would be in service on the higher frequency destinations in Europe, the Middle East and the Gulf.
RJ's fleet now consists of eight A310s, five A320s and two ageing Boeing 707 cargo planes, the latter to be replaced under the modernisation scheme by two of the existing A310s. RJ officials say the plan would not alter the size of the fleet that serves a far flung network of 50 destinations across Asia, the Middle East, Africa and the United States.
RJ's plan to go ahead with fleet modernisation now rather than wait until the government finds a suitable strategic partner to buy up to 49 per cent of the carrier was dictated by commercial reasons.
"Initially we are optimising the fleet to provide the best possible fleet to improve the competitiveness of RJ and that in itself is better value for a potential partner," Majali.
The new fleet configuration did not jeopardise the flexibility of a strategic partner to adjust the carrier's route structure to its future plans, Majali added.
"That allows you to build up your assets in the airline while at the same time retaining the flexibility to reduce or increase the fleet depending on market requi-rements," he said.
British Airways and U.S. Continental Airlines were among carriers that showed interest in the last two years to acquire a key holding in RJ but withdrew as a result of a depressed industry that has discouraged acquisitions.
Majali said the fleet modernisation followed on the heels of a successful debt restructuring and sell-off of its non-core activities that has cleared RJ's decade-old $650 million debt and transformed it into a streamlined and well-run firm.
The leased A340s will allow RJ to introduce a one-stop destination to its U.S. and Asian market, where it now needs a two-stop operation to some final destinations."
"Jordan flag carrier Royal Jordan-ian has embarked on a major fleet modernisation to raise its competitive edge with global carriers and add value for a future strategic partner, the company's chief executive officer said yesterday. RJ's president and CEO Samer Majali was speaking before the arrival from Toulouse of the first of four Airbus A340 planes to be put in service soon on the carrier's long-haul U.S. and Asia destinations, replacing its ageing A310 planes.
Majali said RJ would soon decide between European plane maker Airbus and its main competitor Boeing Co of the United States to supply narrow-bodied planes for the medium and short-range routes. Officials say both makers are in tough lobbying at the highest political levels to sell RJ under long-term operating and financial lease terms secured under favour-able finance.
"We are currently in an evaluation between Boeing and Airbus regarding increasing our narrow-bodied fleet up to 9 or 10 from the five A320 that we have," he added.
"Either it will be totally A320-A321 Airbus or Boeing 737," Majali added, saying they would be in service on the higher frequency destinations in Europe, the Middle East and the Gulf.
RJ's fleet now consists of eight A310s, five A320s and two ageing Boeing 707 cargo planes, the latter to be replaced under the modernisation scheme by two of the existing A310s. RJ officials say the plan would not alter the size of the fleet that serves a far flung network of 50 destinations across Asia, the Middle East, Africa and the United States.
RJ's plan to go ahead with fleet modernisation now rather than wait until the government finds a suitable strategic partner to buy up to 49 per cent of the carrier was dictated by commercial reasons.
"Initially we are optimising the fleet to provide the best possible fleet to improve the competitiveness of RJ and that in itself is better value for a potential partner," Majali.
The new fleet configuration did not jeopardise the flexibility of a strategic partner to adjust the carrier's route structure to its future plans, Majali added.
"That allows you to build up your assets in the airline while at the same time retaining the flexibility to reduce or increase the fleet depending on market requi-rements," he said.
British Airways and U.S. Continental Airlines were among carriers that showed interest in the last two years to acquire a key holding in RJ but withdrew as a result of a depressed industry that has discouraged acquisitions.
Majali said the fleet modernisation followed on the heels of a successful debt restructuring and sell-off of its non-core activities that has cleared RJ's decade-old $650 million debt and transformed it into a streamlined and well-run firm.
The leased A340s will allow RJ to introduce a one-stop destination to its U.S. and Asian market, where it now needs a two-stop operation to some final destinations."