Royal Jordanian, Uncertain Future

Royal Jordanian (RJA) is facing liquidation since its losses have exceeded 75% of its capital. For this reason, the airline has not issued its 2013 financial results or had its share holders general meeting yet. In reality, the government who is the major share holder will not allow its liquidation. It is a matter of national pride and to a certain extent national security. There are talks of restructuring and a government bail out, but this is a hot topic because of the economy and the deficit. It appears like a lot of political jockeying is going on.

The airline was listed in the Amman Stock Exchange in December 2007 and since then it had very mixed results. It sustained losses in 2008 (34.7 M USD), 2011 (81.6 M USD) and 2013 but had moderate profits in 2009 (40.3 M USD), 2010 (13.6 M USD) and 2012 (1.6 M USD).  

In all fairness to Royal Jordanian the geopolitical situation in MENA has not been very favorable and still is not; between fluctuating fuel prices, the Arab Spring, Libya and now ISIL, the airline had to indefinitely suspend lucrative routes like Damascus, Aleppo, Tripoli, Benghazi, Misrata and now Mosul; Cairo, Baghdad and Erbil were suspended on and off for security considerations. RJA also suspended flights over Syria which added almost an hour to an hour forty five minutes to the Beirut flight without an appreciable increase to fares. However, RJA has just announced a code share agreement with Middle East Airlines to start in mid October 2014, allowing RJA to cancel two of its four daily flights. But the most interesting reason cited is the aggressive competition from the Gulf three (Emirates, Etihad and Qatar Airways).

In an attempt to reduce its costs RJA inked code share agreements with Gulf Air, Oman Air and SriLankan to operate Amman to Bahrain, Muscat and Colombo  and has suspended or plan to suspend flights to what it terms as losing routes, like Delhi, Mumbai, Alexandria, Accra, Lagos, Brussels and Milan.

Not withstanding geopolitics, the airline did not react quickly enough. While canceling unprofitable routes is a good thing, overcapacity is not. It leaves part of the fleet idling while still incurring lease and loan payments. Rationalizing staff levels is not be the greatest option in a politically charged country with a very high unemployment rate. 

RJA has already returned 2 A321s and with the B787 deliveries it is planning to rationalize the fleet composition by the end of 2014 to include the following:

B787, 5 operating aircraft;

A340, completely phased out (4 aircraft) ;

A330, 2 operating aircraft down from 3;

A321, 2 operating aircraft down from 4;

A320, 6 operating aircraft down from 7;

A319, 4 operating aircraft, no change;

E195, 4 operating aircraft down from 5;

E175, 3 operating aircraft, and

A310F, 2 operating aircraft, no change.

A net change of 5 passenger aircraft all of them single aisle aircraft, but with a more fuel efficient and modern fleet.

In a nutshell, the airline board and management acted, just like in the old days, like a government entity. This has caused the share price to go down from a high of 4.09 JOD {5.76 US$} on 16 March 2008 to 0.38 JOD {0.53 US$} on 15 September 2014. RJA would have certainly benefited of the equivalent of a Chapter 11.

RJA needs to act in a more agile and proactive manner, after all that was the reason the airline was privatized. The plans for the fleet and route reductions were too late and too little. There is a need to come up with innovative solutions that increase revenue and not only reduce cost. After all, cost reduction is subject to the law of diminishing returns but with revenues, the sky is the limit. 

While RJA may have not lacked leadership, it requires a different kind of leadership. One that not only looks at fleet and routes but one that looks at the management structure and how management approaches risk assessment and especially mitigation. A management that looks at new opportunities for expansion amid the chaos. If this means replacing senior managers, then so be it.

Royal Jordanian has survived for 50 years among the geopolitical chaos; the dilemma today is how to survive and thrive in the same chaos as a publicly listed company. This is a totally different set of rules that RJ may not be yet equipped to handle.

RJ at Fifty, Still Going Strong

This post appeared in RJ's in house employees magazine 

Amidst all the geopolitical turmoil of the last few years, Royal Jordanian has been able to maintain its pioneering spirit. It is not the oldest airline of the region nor the largest or richest. However, Royal Jordanian has always been at the forefront of the industry in the MENA region.

RJ has an innovative and can do spirit that meets challenges head on. I cannot recall a time when the MENA region did not have challenges from wars, invasions, blockades to uprisings. Issues that affect the stability, security, economy, tourism and the ability of people to travel.       

In spite of all this the airline managed to develop into a center of excellence.

The 1970s and 1980s, where times of rapid fleet expansion, with an increase in the B727/B747 fleets and the introduction of the L1011-500 and A310s followed by the A320s in 1990. The move to QAIA allowed the airline to rise to the challenge and was capable to efficiently operate and maintain the advanced new aircraft. The larger facilities allowed the airline to develop its heavy maintenance, engine overhaul, training and catering capabilities. The airline was always at the leading edge of technology, in 1983 it started operation of the L1011-500, the most advanced digital aircraft of its time. It was among the first to operate the A320, the first fly by wire aircraft and to introduce the large regional jets the Embraer ERJ175/195 to the MENA region.

In 2007 the airline was privatized, the first government airline of the region, a long and arduous process. The airline had to sell off almost all of its ancillary services, this drew criticism but in the final analysis it helped to broaden the aviation base in Jordan. New capabilities were introduced that otherwise would not have been. In the same year RJ joined One World The first MENA carrier to join a global alliance. The airline had to meet the alliance service delivery standards.

In the last few years the airline rolled over its fleet. The A310 passenger aircraft were retired and the A320 fleet was replaced by new A321/A320/A319 aircraft. The A340s were refurbished and the A330s were introduced to fill the gap until the delivery of the B787s, in the last quarter of 2014. The e-enabled B787 encompasses challenging leading edge technologies.

Royal Jordanian is a trend setter and has a can do spirit that rises to meet all challenges. This is achieved through a dedicated and well trained workforce. A workforce that is ready to go the extra mile to achieve its goals. The airline developed and thrived in spite of internal and regional challenges and in the process helped other airlines especially those in the Gulf region to develop. As the airline celebrates its 50^th anniversary, the same pioneering, innovative and can do spirit still prevails. Aviation is an industry that is about people; those who travel and those who make their travel possible in a safe, secure and comfortable manner.                          

No Airline exemplifies this as Royal Jordanian does.

Anniversaries

It appears that everything I was involved with in my professional life has an anniversary and a milestone this year.

• Royal Jordanian (RJA) is celebrating its 50th Anniversary
• Air Arabia (ABY) is celebrating its 10th Anniversary
• Etihad (EY) is celebrating its 10th Anniversary
• Al Jaber Aviation (AJA) celebrated its 5th Anniversary

My involvement with each organization varied but I always managed to learn  and contribute.

I joined RJA at a time when the airline was expanding its fleet with new B727s, B747 and L1011s. A new cycle of  B707 heavy maintenance (D) checks was starting and the decision was made to bring the capability inhouse. The planning was done and the new hangar at QAIA was used before the airport was completed. It was an exciting time, then capabilities for B727 and L1011 was developed, it felt like routine. The next milestone was the introduction of the A310s and A320s into the fleet.

Of course there were other challenges some good others not so good. The development of third party contract maintenance that went a long way to cover the Maintenance and Engineering Department costs. Then the first Gulf War that shut down the airlines for four (4) months; but every challenge is an opportunity we performed a B727 D check and B707 D check for a customer. RJ has a pioneering spirit, it was always a tad bureaucratic, but when the chips were down everyone came together and made things happen, a real can do attitude.

At the age of 50 the airline still has this attitude, it has the ability to rebound from challenges; most of them global geopolitical (wars, uprisings, financial crisis, etc.).

RJ brought home the value of "if there is a will there is a way" and doing great things on a budget. I spent eighteen (18) years there and made life long friends.

Start ups are messy affairs. They are hard work and require focus, perseverance and resilience, and all that before first flight. Once operations start it is even messier.

I was at GAMCO now ADAT at the time Air Arabia and Etihad started. I was tasked to ensure an MCC and a scheduling unit are operational at the time the airline begin operations. Both airlines started within a week of each other, ABY on 28 October and EY on 5 November 2003. Small beginnings leading to greater things.

Working for an LCC is a life changing experience. I joined Air Arabia on November 1, 2004, a year after commencing operations. An LCC is a way of life that looks at value for money, efficiency and productivity in a way no legacy airline ever does. I worked for RJA and we were frugal, ABY took that to a higher standard.

Legacy airlines ignored ABY at first as a flash in the pan and an experiment that is bound to fail. Until they felt the heat and then we felt the pressure. Ten profitable years later, ABY is there to stay, true to its business model when others came and failed or changed.

I joned Al Jaber Aviation in October 2008 going from an LCC to a VVIP Corporate Jet Operator. Getting an AOC must be one of the most challenging things a person can do. I heard stories in ABY of working out of a few offices in Sharjah Cargo Building. Well at AJA it was a few offices out of Al Bateen Airport when it was still an air base. Having GCAA inspections while still building offices and  getting manuals approved and licenses accepted before starting operation requires staying power. The first aircraft, an Embraer Legacy 600 was delivered three weeks before the AOC was issued. The proving flights and final GCAA inspections were performed and the AOC was delivered on June 1, 2009 at the time of the second Legacy 600 delivery. The AMO Certificate was issued on 28 May 2009. Operating business jets is totally different than scheduled carriers. There is no schedule and flights are launched at relatively short notice, because even planned flights change at short notice as clients' change plans.

Thirty Five years later, I am starting all over again. Start ups are still messy and require focus, staying power and resilience.

Well 2013 is definitely a year of challenges and milestones. These four (4) airlines regardless of their age still face challenges some are internal but most are external. They all need to look internally and determine what is needed for them to thrive in the next decade. What brought them so far may not and probably is not what will take them forward. After all, successful companies fail because they insist on doing what made them successful in the first place, ignoring the ever changing environment they operate in. Things change and so should organizations.

For now, Happy Anniversary to all four airlines and to my friends and colleagues who are still there, moved on or retired. We all shared experiences, challenges and yes good times. Looking forward to the continued success of Royal Jordanian, Air Arabia, Etihad and AJA.

Better Late Than Never

I travelled to Amman, Jordan last weekend on board Royal Jordanian, from Abu Dhabi and back. The  check in at both airports was easy and fast so was immigration except that e-gate out of Abu Dhabi does not work as efficiently compared to Dubai Intrenational Airport or even arrivals at Abu Dhabi.

Two things drew my attention upon arriving to Queen Alia International Airport (QAIA) that evening
1. The new terminal was all lit up and there was an aircraft parked at one of the gates in what appears  
    to be one of the jetway tests in anticipation of its opening at the end of February 2013.
2. I have travelled through QAIA since it opened in 1983 and for some reason whoever did the      
    handling at the airport could not get the baggage delivered to the carousel in a reasonable time.
    Well, this time the bags arrived within less that ten (10) minutes.

Airport International Group (AIG) who are building the new terminal has been criticized for delays and high fees without improving services by RJ and other operators, which until recently was probably correct. On January 17, 2013 AIG gave me the shortest baggage claim wait in QAIA since 1983. I just hope this performance can be repeated in a consistent manner.

As an after thought ADAS took more than 20 minutes to deliver bags at Abu Dhabi, even though the Amman flight was the only one  at the time.

Air Rail Alliances

Royal Jordanian signed a code share agreement with Via Rail Canada providing passengers with a rail link beyond Montreal to Toronto and Ottawa, the first code share for Via Rail. Tickets can be purchased from RJ's website, offices or travel agents. Via Rail offers wi-fi and meals onboard (within the fare if travelling business while snacks and drinks are sold in economy). I have travelled on via-rail several times and it is a nice experience that allows one to see the countryside up close. 

Exciting, but Air Rail link ups are nothing new and are common with Deutsche Bahn, SNCF, SBB and a few others. 

They go under different programs mainly (for more details click here):

"Dedicated Services" similar to Code Sharing covering certain destinations;

"Entire Network Access" which is service that includes the entire train network. Deutsche Bahn offers this from 16 German airports to almost every carrier that flies into Germany with 10 carriers having Rail & Fly on their website;

"Night & Fly" which is an agreement between Swiss International Airlines and City Night Line providing overnight trips to 10 cities in Switzerland, Netherlands and Germany; and finally

"Airline-Rail Re-protection" agreements which provide train travel in cases of flight cancellations, Via Rail and Air Canada and between Deutsche Bahn and Lufthansa and Airberlin which came in handy during the 2010 eruption of Eyjafjallajokull volcano in Iceland.

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.

Royal Jordanian .... Merger Again

In an interview with Bloomberg Royal Jordanian's CEO indicated "a merger with a larger carrier is inevitable as high fuel prices, competition from local rivals and a sluggish economy squeeze earnings" (Click here for the full story). 

Ever since the idea of privatising Royal Jordanian started in the 1986, the original intention was to sell 49% of the airline to a strategic partner (BA was mentioned) or a foreign investor. Subsequently BA sponsored Royal Jordanian to join Oneworld in 2007.

Eventually Royal Jordanian was privatised in 2007and its shares listed in the Amman Stock Exchange. 

The idea of a merger with another airline was brought up by the CEO in June 2010 "There is room for airlines like RJ to merge with another carrier," he said. "I think consolidation will happen, but not now and it will be like Air France KLM, British Airways and Iberia, Lufthansa-Swiss…Airlines will maintain their national identity." (Click here)

At one time it was thought the airline will merge with Gulf Air, currently a remote possibility given GF's financial conditions. Another possibility is Etihad Airways which already owns 29.2% of Airberlin another Oneworld airline.

One thing is certain the airline requires a cash injection to cope with the oil prices and to finance its B787s to be delivered starting 2014.

Only time will tell how things will develop in the highly volatile political and economical climate in Jordan and the MENA region in general.

RJ Clips Its Wings

This is the gist of a news item in Zawya.com; a tad harsh. MENA is a tough neighborhood but Royal Jordanian is a tough airline. This is not the first time or the last time RJ will have to retrench. The airline has survived worse crisis in its 49 years history; the Arab Israeli war in 1967, the 1982 Israeli invasion of Lebanon, the 1987 financial meltdown in Jordan which saw the currency devalued by 50%, the first Gulf War in 1990 and the list goes on and on.

RJ was transformed from a losing government owned airline to become the first Arab airline to join a global alliance, Oneworld in 2007 and the first Arab privatized airline later in the same year. It also embarked on a fleet renewal program replacing its older A310 and A320s with new A319, A320, A321 and A330s. The A340 fleet was refurbished and new seats and AVOD system installed. The airline has 12 B787s on order.

2011 was a particularly tough year; oil prices hovered around $110 a barrel, a deepening Eurozone debt crisis which is still unfolding and political upheaval in the region, the Arab Spring which affected some of the most profitable destinations in the network and caused a drop in incoming tourists.

According to Mr. Hussein Dabbas, RJ's CEO "Despite all the difficulties, the company was able to achieve positive operational results during 2011, as it increased the number of passengers by 6.5 per cent, the operational revenues by 6 per cent, the flying hours and departures by 3 per cent, the seat factor reached 70 per cent." however, fuel prices increased to JOD 293 millions in 2011 from JOD 203 millions in 2010. My estimate is a net loss of $100 millions on a turnover of $1 billion.

The airline is axing 5 destinations and reducing flights during the year as traffic develops. The airline is looking at the fleet requirements. Probably a reduction in the short and medium range fleet by terminating a couple of leases.
There is nothing new in the recovery plan it has been used several times in earlier situations and seems to work. RJ will still be looking at new destinations and opportunities and leveraging its Oneworld membership to its advantage.

MENA is not for the faint hearted but Royal Jordanian is a resilient airline and has been through worse situations before and emerged a stronger organization, I see no reason that they will not this time.

Social Media and the MENA Airlines

The Arab Spring was attributed to the use of Social Media by the Arab younger generations. Social Media has galvanized opinions and coordinated marches and sit ins that changed regimes. Yet, MENA airlines have not tapped this resource.

It appears that most of these airlines have Info pages with no interaction with passengers or potential passengers and it is sometimes hard to figure out if the page is the airlines official page. Of the twenty one (21) airlines, that I have looked at both legacy and LCC that have Facebook pages; only four (4) have flight booking and other facilities on their pages; Royal Jordanian, Gulf Air, Bahrain Air and Etihad.  

The most liked so to speak page is Qatar Airways (161200 fans) but it is not growing and that maybe attributed to their successful promotion celebrating its 100th destination. 

The fastest growing is Royal Jordanian's page (53500 fans) which adds around a 1000 fans a day and is probably the most balanced page among the region's airlines. It has a lot of traffic directed from the airline which prompts comments and likes but not much customer service content that the airline should encourage.

The most interactive page with customer service issues is Air Arabia's but only has 5500 fans.

Interestingly Emirates (43000 fans) has an info page only but is not growing, Etihad (31000 fans) is not very interactive same as Gulf Air (15500 fans) even though both airlines provide booking and other facilities on their pages. 

It appears the MENA airlines are not very serious about social media yet, a few of them have advanced Facebook Pages but are not very successful in promoting them to the public probably due to lack of resources..

Of all the airlines Royal Jordanian seems to take the effort seriously, they launched their efforts with an aircraft on ground tweet up with the 20 most popular bloggers in Jordan and have allocated resources to maintain the effort and it seems to be successful; around a 1000 fans per day for an airline the size of Royal Jordanian and a country the size of Jordan is no mean feat.

Royal Jordanian - MENA's Trend Setter

In a recent interview on Aviation Business the CEO of Royal Jordanian (one of the few publicly listed airlines in the region) stated that the way forward for the airline is a strategic alliance and joint venture similar to the BA/Iberia, Air France/KLM  or Lufthansa/Swiss, where the airlines strengthen each other while each maintains its identity, The time frame is between a year and a decade. He also emphasized that any partner can not be a government owned airline.

Royal Jordanian is a trend setter in the region. The airline was;
1. The first government owned airline to privatize and publicly list, and
2. The first airline to join an airline alliance One World

Since then Gulf Air, Saudia and Kuwait Airways are slated for privatization and Egypt Air joined the Star Alliance with Saudia and MEA slated to join Star Alliance and Sky Team respectively in 2012.

Going back to airline consolidation, Gulf Air responded positively to the idea that BA/Iberia is looking for a middle east partner and so did Royal Jordanian. But then both CEOs come from the same background (Royal Jordanian).

Now, to indulge in some educated speculation;
1. Gulf Air is working towards privatization in the near future.
2. Royal Jordanian and Gulf Air fleets are very similar
3. Both carriers can strengthen each other with Royal Jordanian having a strong presence in Europe and
    North America and Gulf Air in India, Africa and the Far East.
4. Both carriers have a strong presence in MENA and the GCC.

Almost meeting the criteria mentioned earlier by Royal Jordanian's CEO

The region is catching up with the industry in terms of alliances and airline failures so why not consolidation.

MEA - Comfortable and Complacent

Middle East Airlines (MEA) on 28 February signed an agreement with SKYTEAM to join the alliance in 2012. During that ceremony Minister of Public Works and Transport Mr. Ghazi Aridi announced and vowed that MEA will retain its monopoly and all exclusive rights will be renewed in 2012 (click for full story).

MEA must be thrilled. The airline has become maybe too comfortable and definitely complacent. It has forgotten  that with government support and exclusive rights come responsibilities towards the travelling public in Lebanon.

In the recent events in Egypt regional airlines like Etihad and Royal Jordanian operated extra flights to evacuate their nationals and in the case of Etihad expatriates residing in the UAE. More recently when Libya erupted Lebanese nationals were stranded in Tripoli while Royal Jordanian evacuated 2000 people over a period of a week. This is not risk aversion, airlines that operated to Tripoli did their risk assessment and obtained their insurers consent to operate, MEA seems not to be bothered.

On 25 October 2010, the MEA Chairman complained about the unregulated open skies policy of the country  (click here for details). He actually joined the criticism leveled at the Emirates, Etihad and Qatar Airways by European and North American legacy airlines.

And now the preservation of its monopoly, sorry exclusivity on routes which makes it unattractive to local competitors. The removal of Royal Jordanian's exclusivity did not affect the airlines that started in the last 36 months in a big way. This will provide a lopsided competitive scene whereas foreign airlines have easier access to the Lebanese market than local companies in the making.

The elimination of competition and the disregard of the Lebanese public interest in case of crisis does not bode well for MEA. There are alternatives provided by 55 other airlines. And political uncertainty and fuel prices may not be the only reasons for the loss of revenue and profits.

Airline Challenges in MENA and GCC

Air Arabia announced its 2010 results which showed a 31.5% decline in net profit compared to 2009 (309.559 million vs 452 million AED) similarly Royal Jordanian announced its 2010 results which showed a 66% decline in net profit compared to 2009 (9.8 million vs 28.6 million JOD). Both carriers had higher revenues, load factors and passenger numbers carried. While passenger numbers and revenues have increased yields are coming under pressure.

The field is getting crowded in the GCC and MENA and not only because of regional airlines but also due to the increase in number of airlines operating into the region.

When everybody advocates  "cost savings" as the immediate reaction to lower financial results, the region in addition to lowering costs has always embarked on expanding their networks. Cost savings are subject to the law of diminishing returns and has a finite contribution whereas expansion, the sky is the limit, through the efficient use of assets and resources. This is why almost every airline in the region is expanding its network in 2011. Of course expansion has its difficulties where European and North American legacy airlines fight it every step of the way.

One thing to remember these profits were made on core business, imagine if ancillary fees are added. North American and European airlines showed increased profits in 2010 as a result of Ancillary Fees revenues.

2011 has started with several challenges, upheaval and regime changes in MENA and GCC and the resultant rise of oil prices which were already on an upward spiral did not deter the increase of January 2011 passenger traffic in several countries. These are resilient economies that have gone through major conflicts in the last few decades. Oil prices while affecting airlines is a good thing for the gulf countries where affluence is dependent on oil revenues.

While 2011 looks more challenging than previously thought, these challenges are potentially great opportunities.

Airline Privatization in GCC/MENA

The region so far has seen two successful IPOs, Air Arabia and Royal Jordanian.

Air Arabia's privatization was quick and easy and it came after 3 profitable years, in March 2007.

Royal Jordanian's privatization was a longer and harder process, the IPO was launched in November 2007, after 3 years of profitability. However, the idea started in the late 1980s and was delayed by political events and armed conflicts. Non core activities were sold or partially sold off by the Government to pay off the airline debts and included the Duty Free, Catering, Training Center and Simulators, Maintenance and Engine Overhaul Facilities and its Corporate Aviation operation. The process was systematic and seriously started in 2000 with the sale of the Duty Free to Aldeasa and ended in 2006 when the government was ready to sell off 74% of the total shares.

At this time there are two airlines that are slated for privatization Saudi Arabian Airlines and Kuwait Airways. Both are unprofitable and highly subsidized by the their owners (governments).

Saudi Arabian Airline's privatization effort included a fleet renewal, a new network management system and sale of assets. 49% of Catering was sold off in July 2008 followed by the Cargo Operations (30%) in October 2008. The airline expects to be privatized in 2012 having signed up Al Ahli Capital and Morgan Stanley as financial advisers. The plan is to sell off Maintenance, Ground Handling and Flying Operations.

As for Kuwait Airways, the government has signed up Citigroup Inc, Ernest & Young and Seabury in August 2010 to handle the privatization of the Airline. The Kuwait Investment Authority is supposed to establish a new legal airline entity which will then be sold to investors, the employees and Kuwaiti nationals. No reports of structuring or fleet renewals have been published and to date all three carriers in Kuwait (Kuwait Airways, Jazeera Airways and Al Wataniyah) are not profitable.

Saudi Arabian Airlines seems to be on track in its efforts to privatize. However, the whole Kuwait Airways privatization process seems to be an enigma. Only time will tell

Impressions of a Frequent Flier

This year I have traveled extensively and had the opportunity to experience on board service of several airlines on different flights (Ultra long, long, medium and short range) and different classes.

Here are some of my impressions

Ultra long range (12 to 16 hours) on Emirates, and any other airline for that matter, economy is not a joy if it was not for the inflight entertainment system (ICE). ICE makes all the difference, I am not a movie goer but with ICE I have seen 5 movies during one flight, a personal record, and still had 7 hours to sleep.

For some reason Emirates always serves the last meal on the flight too close to the arrival time, and results in the cabin crew really hustling to secure the cabin sometimes up to a few minutes from landing. And if you are sitting in the back you will never get your first choice when it comes to meals.

However, long and medium range flights on Emirates Business is a gourmet experience that stands true to their radio advertisements. I had my best steak ever on an Emirates flight.

Business class service on long and medium range flights of American Airlines, is an enjoyable although sometimes a very slow service depending on the flight attendant serving your side of the cabin. I understand there are laws and rules to prevent discrimination based on age and/or BMI, but please let us be reasonable here, having one's meal when the other side of the cabin is halfway through their siesta is not nice. The inflight entertainment system is adequate.

On the other hand a BA flight to Dubai during a UNITE strike day is a bloody awful experience. Minimum crew on the B777 (8 out of which 6 are of minimal experience). The service in Business left a lot to be desired, lucky it was a night flight and most of the passengers were asleep.

Willy Walsh should be grateful passengers are still flying with BA. Of course, I had better experiences on BA flights but this one was memorable.

Royal Jordanian's Business class on short flights (2 to 3 hours) is a relatively good experience. The flight attendants sometimes lack the sophistication and finesse of their counterparts in other One World carriers. The food is good and the crew are friendly and actually smile at you most of the time and I like it, but then I am biased (ex RJ).

As for Regional travel in the USA whether with American or Continental, the best you can do is nap. The seamless service and experience that we were promised in the 70s and 80s did not happen and it will never happen you can not compare a B777 to an EMB145. Service is not the issue. It is the feel and look of the aircraft that throws you off, the Majors need to look again at their regional feeders.

However, the one thing that EMIRATES surpasses all the others is the ability to deliver your bags in a reasonable time no matter where the aircraft is parked at Dubai airport. On Business class I found my bag on the belt and I use e-gate. Kudos Emirates

Royal Jordanian ... Exciting Times

In the last couple of weeks Royal Jordanian announced the lease of seven (7) new Airbus aircraft from AWAS to replace 6 Airbus aircraft currently operating in the fleet. The replacement consists of 4 A320s and 2 A321s and an additional A320.. The first delivery is scheduled for April of next year when 3 A320s will join the fleet, while 2 A321s and 2 A320s will follow in 2012. The aim is to renew the fleet, upgrade the IFE across the fleet and reduce maintenance cost.

Further, Royal Jordanian added flights to several destinations to meet demand during the Summer season raising the daily departures to about 110.

In addition two (2) Airbus A330-200 joined the fleet on 24 May 2010 to be used on the London and Kuala Lumpur routes starting June 1, 2010.

Earlier, Royal Jordanian announced their intention to refurbish at least two (2) of their four (4) A340s by changing the interior and the IFE system starting at the end of 201 early 2011.

Royal Jordanian will be facing more competition both domestically and internationally, QAIA has attracted more than twenty plus (20+) new and/or upgraded air services over that past year through both introduction of new airlines, as well as increased frequency and/or routes by established carriers

To add to the buzz Mr. Hussein Dabbas President and CEO of Royal Jordanian, brought up again the issue of mergers and consolidation. "There is room for airlines like RJ to merge with another carrier," he said. "I think consolidation will happen, but not now and it will be like Air France KLM, British Airways and Iberia, Lufthansa-Swiss…Airlines will maintain their national identity."

The fleet renewal and expansion of the fleet coupled with the refurbishment of the A310s earlier and the A340s later this year is an indication of Royal Jordanian’s efforts to improve its services to ward off the competition and position itself for a merger.

Royal Jordanian, the Brand

To start with I am biased, I have worked for Royal Jordanian eighteen (18) years but I left fourteen (14) years ago. Further, I have not flown with RJ for almost three (3) years. Having said all this, I will try to be as impartial as possible.

I traveled from Dubai to Amman and back on a Y/J ticket (staff ticket with a confirmed economy seat upgradeable to Crown Class subject to load).

At Dubai I checked in and requested an upgrade, the RJ supervisor was very courteous and I got my upgrade on the spot. The Crown Class was full I must have taken the last seat.

This was a morning flight on an A321 which had leather seat and IFE. The aircraft could have looked better, but it was clean and bright. The breakfast service was a little bit disorganized, but the Cabin Crew smiled and were very courteous. One thing I missed on that flight was the Ya Hala Service (the cabin crew wearing a modern traditional dress) which branded the Crown Class for years.

At Queen Alia International Airline I checked in at the Crown Class Check in which took a few minutes. I was invited to the Lounge pending the change of my boarding pass. The Crown Check in has its dedicated security check point and takes straight to desk 1 at immigration. the whole process took a few minutes and everyone was friendly.

The new Crown Lounge is awesome, spacious and overlooks the apron. It has a game room with a pool table and kids playing room. Hot food and snacks are served. It is a great improvement over the previous lounges and provides free wi-fi and dedicated TV viewing stations. It is a pleasure to spend time there.

The flight back was a night flight, the service was similar to the breakfast service and the Cabin Crew were as courteous, efficient and friendly as their colleagues.

The service and equipment are great and it is a far cry from what they offered a few years back.

However, Royal Jordanian needs a more definitive Brand, something that will make it stand out in the crowded MENA region and among its partners in One World.

Kudos Royal Jordanian, keep it up

The Right To Screw Up

I was browsing my LinkedIn account (click here to visit) and I came across a discussion topic in one of the groups asking how did I get to where I am today. Well, in 1977 in Jordan, mentoring was not a common thing nor was career path development. I was hard working and lucky, what else did you guys expect.

I was lucky in the sense, I joined at the time Royal Jordanian was expanding and new organisational functions and structures were being put in place. Another aspect, I had a boss who gave me space to grow and most importantly to make mistakes, and I took advantage of that.

I made mistakes nothing catastrophic but I made mistakes in an era when celebrating failures and mistakes was not the norm. I never covered up a mistake but always learnt from one.

In a way, the boss acted as a mentor, not in the traditional sense but rather by taking the time to talk to me and guide me, beyond what was normally required. He used to say, expand the envelope until you step on someone's toes and they holler; stop and back off; then start again until you get to where you want. Advice that I always used.

Later in my career, in all my subsequent jobs, I had, and in some cases created, the space for me and others to make mistake. I enjoyed mentoring younger people. It was never through a formal program but something I felt I needed to do, as a pay back to the opportunities that life gave me.

The ability to make mistakes is what drives creativity, innovation and the ability to experiment without fearing for your job. Some would think it is a privilege that a workplace bestows, I beg to differ. It is a right of an employee to be allowed to make mistakes without fear or retribution and it is the job of a good boss to create that space so mistakes do not get out of hand.

Mistakes are committed by those who extend themselves on the job and are willing to seek positive change and strive for the next step and excellence.

Finally Liberalized ... Aviation In Jordan

On 5th of February 2010 the exclusive right accorded to Royal Jordanian (RJ) in 2002 as the sole scheduled carrier in the country came to an end. A new era of market liberalization came into being.

In 2002 and as part of the government assistance in the privatization effort of RJ, it was agreed:

1. For 4 years RJ will be designated as the only scheduled carrier operating under any of the

bilateral agreements signed by Jordan.

2. For the remaining 2 years the government allowed other Jordanian carriers to operate

scheduled flights on any route not served by RJ and a Charter authority for routes operated by RJ.

As of today, 6th of February 2010, and if a bilateral allows for the designation of a second carrier, they any operator can request scheduled flights authority.

What does that mean to RJ and to the industr? In the short term not much.

However, in the medium and longer term it changes the economic dynamics of aviation in Jordan.

1. Potentially increases competition on existing lucrative routes (Dubai, Beirut, Cairo to name a few

2. It changes the economics of the business plan for existing and start ups alike. How so, it adds

a revenue stream and an option that did not exist before "Scheduled Flights" on routes with

a known economic potential, in a nutshell it makes it easier to start an airline, at least on

paper.

How soon are the existing operators, Jordan Aviation, Royal Falcon Air Services and Transworld Airfreighter Co., ready to take on RJ on its well established routes. The levels of service will have to improve and commercial structures have to be put in place in order to compete with RJ that offers a "One World Alliance" passenger services and extensive connectivity on a fairly new and modern fleet.

Realistically, the effects of this decision will not be felt for a few more years, but it opens real opportunities and competition on a market that has been the exclusive turf of Royal Jordanian since 1963.

In The Image of RJ

I have been closely involved with Gulf Air (GF) since 1996. I went through the years of decline of the airline dealing with maintenance issues.. For years the leadership of the airline was a political issue. We used to joke, every problem with Gulf Air was a diplomatic incident. I saw the airline go from an example of Arab cooperation to the flag carrier of Bahrain. I watched GF maintain a 5 million passengers annual uplft as Emirates, Qatar Airways and others eroded its market share.

Then enters James Hogan who transformed GF into little Ansett. I am not a great fan of the man but he did manage to increase the passenger uplift to 7 millions annually, rebranded the airline new paint scheme, Chef in the Air, Nanny in the Air and Bahrain F1. Then James Hogan bailed out to Etihad, but that is another story. Several CEOs came and went amidst political interference from Parliament, internal turmoil and accusations of corruption.

August 2009 enters Samer Majali, ex CEO of Royal Jordanian. He left RJ with a mid year net profit of 15 Million USD in the worst global recession. He privatised the airline and took it into One World. No small feat.

So, enters the new CEO, and the following events unfold

1. Government declares it can not subsidise GF forever.

2. Iraq operation started a month later (a very lucrative and profitable route)

3. Cut down on several losing routes and reopened new ones

4. A review of the airline structure is done looking at manpower and fleet.

5. A decision made to become more of a Middle East Airline.

6. A decision to sell the 5 A340 owned by the airline.

7. A decision to take delivery of new A320s (20) at the rate of one per month.

8. And lately a decision to lease ERJ170s and look at acquiring up to 10 Regional Jets.

The parallels with Royal Jordanian are so similar. (substitute A340s with A310s and L1011s, EMBRAER ERJ170/190, Iraq operation, route structures)

Gulf Air's legacy should be preserved. Gulf Air has been the dominant carrier in the region for decades and every airline aspired to emulate their 5 Stars service. Further, every airline in the GCC has senior managers who have worked for Gulf Air and contributed to the success of their respective airlines. Similarly every airline in the GCC has several ex Royal Jordanian employees contributing to their success.

Two carriers, different regions may end up with the same model, robust enough to compete with the heavily branded carriers of the Gulf and survive in an ever changing global market.

In Memory

This is dedicated in memory of the courageous crew of SD2241 that steered the aircraft away from residential areas. May the rest in peace and God's mercy be upon them.

I first came in contact with her in 1990 when she was 21 years old. ST-AKW operated for the Sudan Air Force flying relief supplies into Juba (the capital of Southern Sudan and the province of Central Equatoria).

It arrived into Royal Jordanian Engineering and Maintenance Base for Heavy Maintenance (D Check) a few months before the first Gulf War. This B707-300C was worked hard transporting humanitarian supplies and it was in need of serious maintenance work. Work started on the check after the beginning of the war and lasted for months, after which she became a frequent visitor to Amman for routine maintenance work (C Checks) with the other B707-300C of Sudan Airways.

It was only after eight (8) years and during my work with Air Arabia at Sharjah Airport that I had glimpses of her and her sister ST-AFB as they came to the cargo terminal. It felt like meeting old friends.

An aircraft crash is a very tragic and sad event. The loss affects not only the families of those directly involved but also those who are associated in one way or another with the crew and the aircraft.

Our prayers go to the crew and their families and a farewell to ST-AKW (2/69-10/09) you have served well and long.

NB Airline Industry review has compiled A Photographic Farewell of the A/C