Gulf carrier acquisition of Royal Jordanian would ‘make sense’: chief executive

Royal Jordanian CE Samer Majali believes the airline is an ideal candidate for acquisition by a larger Gulf-based operator, given its location and capabilities. Speaking to FlightGlobal at the Arab Air Carriers Organization conference in Riyadh, Majali said a strategic investor would obtain an alternative hub – away from closely-spaced ones in the Gulf region – with access to the Levant and a trained workforce. “We’re surprised none of the Gulf carriers ever thought to buy Royal Jordanian,” he says. “Because they could buy it for a song. They can buy it for the price of an aeroplane.” He says the carrier is well-run but small and, as a result, its financial performance is “always on the margins”, typically hovering around plus-or-minus $15m on revenues of around $1b. “That’s what we’re looking for, to partner with a well-funded carrier that will allow RJ to be profitable,” he states. “It’s not a huge liability. In fact it could become profitable with the economies of scale they have, the purchasing power, and so on.” Majali suggests Qatar Airways would “make sense” as such a partner. While both airlines are Oneworld partners, Majali argues there are other reasons to explore a tie-up. “They don’t have population. We have population,” he says. “They’re sitting in the middle of a very difficult region.” Saudi Arabia’s ambitious airline plans will pose a substantial challenge to other Gulf carriers, he believes: “They’re going to be battering them to pieces. Down the line the main target of this new Saudi carrier [Riyadh Air] is [Emirates and Qatar Airways].”<br/>