Royal Jordan to close subsidiary due to losses

A sign marks the check-in for Qatar Airways, Royal Jordanian Airlines and Finnair on 21 March 2017 at John F. Kennedy International Airport in New York. [DON EMMERT/AFP/Getty Images]

State-run Royal Jordanian (RJ) airlines announced yesterday that it will suspend its charter subsidiary, Royal Wings, at the end of this month due to its high operational costs and the financial losses incurred over the years.

The company said in a statement that the Royal Jordanian’s Commercial Department will not handle the marketing and sale of charter flights.

“Negotiations are underway at this stage with two parties interested in buying Royal Wings,” the statement said, pointing out that the sale may take some time.

The company has 95 staff members who will either join the parent company or be offered voluntary redundancy.

Royal Jordanian’s net loss fell by 52 per cent in the first half of 2018 to 12.7 million dinars ($17.9 million), compared to 26.3 million dinars ($37 million) in the same period of last year.

READ: Jordan prince criticises income tax law

Unless otherwise stated in the article above, this work by Middle East Monitor is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. If the image(s) bear our credit, this license also applies to them. What does that mean? For other permissions, please contact us.