RJA321
Topic Author
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Royal Jordanian's Outlook More Positive?

Sat May 12, 2012 11:08 am

According to RJ's official website, passenger numbers have increased by 26% in the first quarter of the current year. As per the release,

"Amman, April 14, 2012, Royal Jordanian transported over 774,000 passengers in the first quarter of 2012, compared to 615,000 passengers carried in the same period of 2011, marking an increase of 26%"

Could this signal a positive outlook for the year 2012 for RJ? Any ideas of what the new management needs to do to maintain and improve numbers, besides the fact that RJ seems more open for a merger possibility...?
Hurry up, before we all come to our senses!
 
klwright69
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RE: Royal Jordanian's Outlook More Positive?

Sat May 12, 2012 11:41 am

For starters, they need to keep improving their long haul product.

Second, they need prod Amman Airport Management to update and maintain airport facilities (especially bathrooms)
 
9w748capt
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RE: Royal Jordanian's Outlook More Positive?

Sat May 12, 2012 2:01 pm

Just flew RJ on DEL-AMM-ORD and I was quite impressed. Overall friendly/responsive flight attendants and tasty food (good portions!). Only big complaint was lack of moving map on DEL-AMM sector and cramped seating on the A319 (although we did have PTVs with highly censored AVOD).

Quoting klwright69 (Reply 1):
Second, they need prod Amman Airport Management to update and maintain airport facilities (especially bathrooms)

Isn't there a brand new terminal under construction that will significantly upgrade the current bare-bones facilities at QAIA?
 
AF022
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RE: Royal Jordanian's Outlook More Positive?

Sat May 12, 2012 3:26 pm

Quoting RJA321 (Thread starter):
"Amman, April 14, 2012, Royal Jordanian transported over 774,000 passengers in the first quarter of 2012, compared to 615,000 passengers carried in the same period of 2011, marking an increase of 26%"

I don't think passenger numbers mean much of anything without comparison to capacity.

I thought RJ was having problems. Didn't they cancel or delay NBO recently?
 
RJA321
Topic Author
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RE: Royal Jordanian's Outlook More Positive?

Sat May 12, 2012 4:02 pm

Yes there is a new airport being built, but there's still some time to go before it opens, even though phase one should have already been in operation by now.

As for Nairobi, and according to Wiki, it's only being served as a seasonal destination.
Hurry up, before we all come to our senses!
 
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RJAF
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RE: Royal Jordanian's Outlook More Positive?

Sat May 12, 2012 4:45 pm

There is no doubt that RJ is a quality product but unfortunately they are inconsistent. The main problem is FA's attitudes. Not sure how seriously does RJ management take complaints. In this brutally competitive type of industry (especially with the new-bees such as QR, EY and EK) you cannot afford not to have a flawless operation.
Chance favors the prepared mind
 
liftsifter
Posts: 495
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RE: Royal Jordanian's Outlook More Positive?

Sat May 12, 2012 5:17 pm

With Dabbas stepping down soon, hopefully we'll have some brighter days ahead.

RJ was heavily relying on the 787's to upgrade their entire operations, but unfortunetly, that hasn't worked out as they originally wanted to. (originally late 2010 EIS, now mid-2014) They also need to make some major changes with their cabin crew. Countless times, crew that are obviously Jordanian say "sorry, don't speak Arabic" when asked a question in Arabic. However, EK even trains their crew with simple Arabic phrases that a passenger would request.

Looking forward to see how they do this coming summer.
A300 A310 A319 A320 A321 A332 A333 A342 A343 A346 A380 B736 B737 B738 B744 B763 B77L B77E B77W B788 E190
 
LAXintl
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RE: Royal Jordanian's Outlook More Positive?

Sat May 12, 2012 5:18 pm

Carrying more people is meaningless if its being done at an even greater loss.

Even in 2011, RJ saw an increase in boardings compared to 2010, but its operating expenses rose 20% including a 44% rise in fuel cost and wiped out two years worth of previous profits.
For 2012, fuel expenses is up another almost 30%, and over 150,000 European bookings have been lost due political fears and route cuts. What is flying RJ today is more lower yield ethnic and regional traffic, not the ideal mix to profit from.

In my opinion RJ's future is tied to a few things: 1) Massive focus on cost control and increase productivity. 2) reduced capital expenditures (there is a heavy financial burden from new aircraft at such a small company) 3) Consolidation, including equity tie-in with a foreign partner. Not only would this provide new capital, but would hopefully make RJ part of a broader and much stronger network.

While RJ joined OW, I'm not quite sold on its benefits. Being squeezed by both European and Gulk carriers, RJ neither has the network, frequency, or capital to fight them off.
From the desert to the sea, to all of Southern California
 
YLWbased
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RE: Royal Jordanian's Outlook More Positive?

Sat May 12, 2012 5:24 pm

Quoting RJAF (Reply 5):

There is no doubt that RJ is a quality product but unfortunately they are inconsistent. The main problem is FA's attitudes.

Spot on. I had the pleasure travel HKG-BKK-HKG on RJ a few months back, the hardware is overall impressive. However the attitudes of some of the FA's are amazingly bad.

But with RJ price on this route consistently lower than their LCC rival Air Asia, I'd gladly fly RJ again should I need to travel to BKK again.

P.S. I also have my doubt at their profitability despite their pax number went up, as I mention above, their tickets are cheaper than LCCs.

YLWbased
Hong Kong is not China. Not better or worse, just different.
 
FlyingAY
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RE: Royal Jordanian's Outlook More Positive?

Sat May 12, 2012 5:33 pm

Quoting YLWbased (Reply 8):

Spot on. I had the pleasure travel HKG-BKK-HKG on RJ a few months back, the hardware is overall impressive. However the attitudes of some of the FA's are amazingly bad.

I've flown RJ now 6 times and every time the flight has been good - plane's are in nice condition and maybe I got lucky, but the service was good too. However, AMM airport is really not on the same level as RJ is - the place was quite unpleasant when I had to spend 4 hours there while waiting for my connecting flight... Facilities, cleanliness, choice - all require updating.
 
Viscount724
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RE: Royal Jordanian's Outlook More Positive?

Sat May 12, 2012 7:19 pm

The problem with the smaller national carriers in the Middle East is that they have no hope of ever becoming a significant competitive factor compared to the major Gulf-based carriers (EK/EY/QR).

If countries in that region could ever sort out their multiple political issues, it might make sense for carriers like Egyptair, Royal Jordanian, MEA and Syrian Air to merge into a single joint carrier, similar to the defunct Air Afrique (or of course SAS). It could even include carriers like Gulf Air and one or two others with similar problems.

There was a brief effort to do something like that in the late 1950s and early '60s when Egypt and Syria merged into a single country (United Arab Republic) and the Egyptian national carrier (then named Misrair) changed it's name to United Arab Airlines and operated as the joint carrier of the former Egypt and Syria from 1958 to 1961. However Syria decided to break away from the union in 1961 and the airline again became a purely Egyptian carrier, although it retained the name United Arab Airlines until the early 1970s when it changed its name to Egyptair.

There was another effort, sponsored by Libya's Muammar Gaddafi, to merge Libya, Egypt, Sudan and Syria into a single Arab state in 1972, which, had it happened, would no doubt have resulted in a single airline replacing the four national carriers. Referendums in the four countries approved the general proposal but they couldn't agree on the terms and it never happened. There were 2 or 3 other similar failed efforts involving various groups of countries in that region.

[Edited 2012-05-12 12:48:59]
 
klwright69
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Joined: Mon Jan 17, 2000 4:22 am

RE: Royal Jordanian's Outlook More Positive?

Sun May 13, 2012 7:21 am

Quoting 9w748capt (Reply 2):
Just flew RJ on DEL-AMM-ORD and I was quite impressed. Overall friendly/responsive flight attendants and tasty food (good portions!). Only big complaint was lack of moving map on DEL-AMM sector and cramped seating on the A319 (although we did have PTVs with highly censored AVOD).

I flew ORD-AMM-RUH. I agree the service is inconsistent.

The long haul flight to AMM was just so-so. Mediocre dinner, good breakfast. But flight attendants absent most of the flight outside of meal service.

AMM-RUH. Excellent food and flight attendants.
 
sbon
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RE: Royal Jordanian's Outlook More Positive?

Sun May 13, 2012 9:43 am

Quoting klwright69 (Reply 11):
I agree the service is inconsistent.

I also flew ORD-AMM a short while ago, and the service was not at the level I was expecting. I did adore the meal service and the tea (chay) was incredible.

I'd definitely choose to fly RJ again, but they could work on some things - most of what has been said here already.
 
abrelosojos
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RE: Royal Jordanian's Outlook More Positive?

Sun May 13, 2012 9:52 pm

Quoting LAXintl (Reply 7):
While RJ joined OW, I'm not quite sold on its benefits. Being squeezed by both European and Gulk carriers, RJ neither has the network, frequency, or capital to fight them off.

=       ... Absolutely. Additionally, RJ seems to have lost focus on leveraging the OW partnership in a meaningful way. The fact that NO other OW carrier serves AMM makes it harder for them to benefit. They need to continue owning the "Levant" region and provide feed to just OW hubs. I still don't get why they retain high load/low yielding routes to North America which have zero hub benefits. Majali did a lot to improve the network -- but it seems to be stuck after he left.

Isn't it ironic that their best performing route is TLV-AMM ...?

Quoting Viscount724 (Reply 10):
If countries in that region could ever sort out their multiple political issues, it might make sense for carriers like Egyptair, Royal Jordanian, MEA and Syrian Air to merge into a single joint carrier, similar to the defunct Air Afrique (or of course SAS). It could even include carriers like Gulf Air and one or two others with similar problems.


= OH NO! Please NO! Multi-country carriers have NEVER succeeded and sooner or later, national pride takes over ... perhaps especially so in the Middle East. Gulf Air was a functioning disaster -- it was OK during the days when there were no competition, but now it would never work. Look around - legacy multi-country multi-hub carriers are doing rather poorly, and all of the ones that were in the past have been disbanded.

Saludos,
A.
Live, and let live.
 
Viscount724
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Joined: Thu Oct 12, 2006 7:32 pm

RE: Royal Jordanian's Outlook More Positive?

Sun May 13, 2012 11:42 pm

Quoting abrelosojos (Reply 13):
Quoting Viscount724 (Reply 10):
If countries in that region could ever sort out their multiple political issues, it might make sense for carriers like Egyptair, Royal Jordanian, MEA and Syrian Air to merge into a single joint carrier, similar to the defunct Air Afrique (or of course SAS). It could even include carriers like Gulf Air and one or two others with similar problems.


= OH NO! Please NO! Multi-country carriers have NEVER succeeded and sooner or later, national pride takes over ... perhaps especially so in the Middle East. Gulf Air was a functioning disaster -- it was OK during the days when there were no competition, but now it would never work. Look around - legacy multi-country multi-hub carriers are doing rather poorly, and all of the ones that were in the past have been disbanded.

Couldn't such a carrier be established more like the various LANs (Chile, Peru, Argentina, Colombia etc.) and the similar TACA setup which seems to work quite well, with varying degrees of local ownership and management in the individual countries but operating under a single brand so they appear to the public as a single airline? Similar to Air Asia and Tiger Airways in Asia, with a single brand but operated by separate carriers in the various countries to meet local ownership requirements.
 
abrelosojos
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RE: Royal Jordanian's Outlook More Positive?

Mon May 14, 2012 3:40 am

Quoting Viscount724 (Reply 14):
Couldn't such a carrier be established more like the various LANs (Chile, Peru, Argentina, Colombia etc.) and the similar TACA setup which seems to work quite well, with varying degrees of local ownership and management in the individual countries but operating under a single brand so they appear to the public as a single airline? Similar to Air Asia and Tiger Airways in Asia, with a single brand but operated by separate carriers in the various countries to meet local ownership requirements.

= Sure. But these are not merged "national carriers". Majority ownership structure remain with the parent firm - either directly (Air Asia) or through convoluted AOC's (some say brilliant, some say dodgy) like with LAN. None of them were "national carriers", and all were set up as subsidiary operation.

Saludos,
A.
Live, and let live.