AMMAN (JT) -- Privatisation of Royal Jordanian is the most important issue the airline's board of directors has been working on, RJ Chairman Nasser Lozi said on Monday.
In his opening address at the airline's 42nd Marketing and Sales Annual Conference yesterday, Lozi said the privatisation project, to be completed before the end of this year, will be conducted in two phases.
The first, to be completed within three months, includes an evaluation of RJ and advising the government on the best options for selling up to 74 per cent of RJ shares to financial/strategic partners and to the Jordanian public, through an initial public offering (IPO).
The second phase is the implementation of the government-sanctioned option.
He added that eight international investment banks, experienced in aviation and airline related transactions, were invited to submit their technical and financial proposals for the project and after a study and evaluation a specialised technical team recommended that Citigroup lead the consortium of local and international partners.
Speaking to area managers of 52 stations and general sales agents from another 40 countries who attended the conference, Lozi said another major step in the privatisation process was the government's decision to modernise and expand Queen Alia International Airport.
RJ President/CEO Samer Majali reviewed the airline's overall performance last year and the fleet renewal to cater for the network that will see new destinations in 2007 and 2008, such as Montreal, Budapest, Ankara, Brussels, Casablanca and Algiers.
Last year, RJ received six new Airbus A320s and A321s, and the first of seven EMBRAER regional jets, as part of the medium-haul fleet modernisation programme.
Majali said that after years of losses, Royal Jordanian managed to return to profitability starting in 2004, despite the huge complexities faced by the air transport industry, such as political instability in the region, the entry of new low-cost carriers and skyrocketing fuel prices. He pointed out that the fuel bill the airline paid last year amounted to $197 million compared $142 million the previous year.
He also referred to internal developments, among them the gradual implementation of the e-ticketing system and the introduction of a new revenue management system.
Meanwhile, RJ Vice President/Marketing, Sales and Services Hussein Dabbas reviewed the airline's marketing and operational plan for this year, with a view to boost the company's market share worldwide.
He said the plan focuses on opening new markets, reducing operational cost, upgrading passenger services, creating sales and marketing tools, improving flight schedules and connectivity, and reducing sales costs through promoting the Internet booking engine platform, e-ticketing and interline e-ticketing.
The one-day conference also tackled the company's 2007 marketing and sales plan and the outstations' performance in 2006.
In addition, participants discussed the changes that will touch work methods as a result of introducing the e-business and automated travel procedures, and above all entering the oneworld alliance.
Area managers attended a workshop on Sunday, where they were familiarised with the changes and developments RJ is witnessing coinciding with its membership in oneworld as of April 1.
© Jordan Times 2007
