Royal Jordanian What Next

On 17 April 2012 it was announced that the CEO of Royal Jordanian will be stepping down on 1 June 2012. The reason cited, that "the move came out of his conviction that the time had come to implement “new ideas” to develop the Jordanian carrier." RJ like the rest of the industry in the region and to a certain extent globally has suffered from the effects of the Arab Spring and spiraling fuel cost. The carrier has reported a loss for 2011 of around 80 million USD, not necessarily through the fault of management, in all probability the loss could have been higher if the problems were handled differently.

RJ implemented several improvements to its product and systems to meet the requirements of joining Oneworld. The on board product offered is good, of course there is scope for improvement. The idea of a merger similar to AF/KLM or BA/IB was floated again.

The reason for the CEO's departure is not the most significant issue. The real issue is the new CEO, who will be
appointed by the Board after the General Assembly in June. Whether the new CEO will be tapped from within the airline, the industry or is a political appointee remains to be seen. Regardless of his background, he will influence the future development of the airline and how the "new ideas" will be implemented. It may be a reflection on how the privatisation process in the country is being viewed.

I wish Mr. Hussain Dabbas, a friend and a colleague, the best in his new endeavors.