AMMAN –
Royal Jordanian Airlines held an extraordinary meeting on
Tuesday where they announced major financial restructuring following the
announcement that accumulated losses of JD385,157 million had exceeded capital
in 2022 putting the airline at risk of liquidation.
اضافة اعلان
Led by Chairman of the Board of Directors, Saeed Drouza, the
General Assembly decided to reduce the company's capital from 324,610,470
shares/dinars to 123,627,470 shares/dinars, amortizing JD200,983 million from
of the losses balance and a further JD14.808 million from the mandatory
reserve, leaving a loss balance of 184,174 million dinars, as reported by Al
Mamlaka TV.
At the same time the company approved an increase in the company's
capital by 240,000,000 shares/dinars, bringing the authorized and subscribed
capital to 363,627,470 shares/dinars. This increase will be covered by the
government of Jordan through the Government Investment Management
Company.
The remaining amount of the increase in the capital, will be
covered by Royal Jordanian through the issue of 170,000,000 shares/dinars in
the
Jordan Airports Company which the airline has a 90 percent stake in.
Chairman Saeed Drouza stated that the new strategy would enable
Royal Jordanian to continue its role as the national carrier of the Kingdom and
thanked the government for its support.
CEO Samer Al Majali added that the capital restructuring process
would allow the company to proceed with its fleet
modernization plan, which
includes expanding its network and increasing the fleet size to approximately
41 aircraft.
Contracts have been signed to introduce new aircraft of the Airbus
A320neo series for medium-haul routes in the Middle East, the Arab Gulf,
Africa, Europe, and short-haul Embraer E2 aircraft for the airline's short-haul
routes.
The first two Embraer aircraft are set to join the fleet in
mid-December, and Royal Jordanian will complete the full fleet modernization
process by early 2026.
The company recorded net losses of approximately 235 million
dinars in 2020 and 2021, in addition to the losses incurred during the first
quarter of 2022 due to the spread of the Omicron variant and the Russia-Ukraine
crisis, which led to increased fuel prices in global markets.
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