Royal Jordanian reverses Munich cost-cutting decision

Airline says it has had rethink on plan to halt services to German city from April 19
Royal Jordanian reverses Munich cost-cutting decision
Hussein Dabbas, president and CEO of Royal Jordanian
By Andy Sambidge
Mon 19 Mar 2012 06:29 PM

Royal Jordanian said on Monday it has decided to reverse its decision to suspend operations to Munich as part of cost cutting measures.

The route, which was supposed to be closed for sales as of April 19, was one of five destinations identified by the airline in February as loss making.

Alongside Brussels, Al-Ain and to two other destinations in the Gulf area, not yet announced, Munich was to be halted as part of plans to reduce the operating costs which have soared on rising fuel prices.

Hussein Dabbas, the RJ president, said that the decision to keep Munich on the route network was due to restudying the pattern of its operation to Frankfurt and Munich as well as taking into consideration the assistance provided by Munich Airport.

He added that the operation would consist of two Munich frequencies. The service includes running one weekly direct flight from Amman to Munich on Saturdays and another combined with the service from Amman to Frankfurt on Wednesdays.

RJ operates another five weekly direct flights to Frankfurt.

Dabbas stressed there was always a chance to resume operations to any of the cities earmarked for suspension "when conditions improve and demand on travel grows in the future".

Royal Jordanian's fuel bill reached JD293m in 2011, compared to JD203m in 2010, a 44 percent increase, leading to about 20 percent growth in the overall operational cost of the company.

Its operational loss from the European continent amounted to 124,000 passengers. The drop in passenger numbers forced the airline to cancel around 1,300 flights in 2011 and over 550 flights in the first three months of this year.

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