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‘RJ mulls restructuring plan for JD128m debt’

By Mohammad Zyoud - Jun 24,2015 - Last updated at Jun 24,2015

AMMAN – Royal Jordanian (RJ) will seek a restructuring plan for its debt, estimated at JD128 million, according to RJ Chairman Suleiman Hafez.    

Hafez told members of the Lower House’s Integrity and Fact Finding Committee on Tuesday that the airline owes JD80 million to the Jordan Petroleum Refinery Company, JD15 million to Airport International Group and JD33 million to the catering company. 

He said the national carrier’s current capital is JD84 million, noting that it is lower than the price of an airplane. 

The former finance minister added that RJ planes are supplied with fuel from 40 stations outside Jordan at prices cheaper than in the domestic market, which saves the company around JD28 million. 

Hafez also indicated that the suspension of flights to several destinations in unstable regional countries such as Libya, Mosul in Iraq, Syria, Aden and Sanaa in Yemen have badly hit RJ’s revenues.

Members of the committee stressed the need to prepare an action plan to help RJ recover and return to profitability, and called on the airline’s management to explain the reason behind leasing airplanes instead of buying them. 

 

They also called on the management to suspend flights to 36 destinations that cause financial losses.

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