Amman, Royal Jordanian (RJ) Chief Executive Officer and President Hussein Dabbas, 57 submitted his resignation on Tuesday the 17th of April 2012, being quoted “decided to resign because it is time for a change and it is time for new ideas to develop the company”.

Dabbas headed the airline since August 2009 and joined it in 1979. During the last year of his tenure, RJ witnessed a turbulent period for both the airline and the industry due to regional political turmoil.

Noting that RJ’s 2011 financial results were impacted resulting from a rise in fuel prices, Dabbas said in a statement earlier this year that the company’s fuel bill had reached Jordan Dinars 293 million (US$ 413 million) last year, compared to Jordan Dinars 203 million (US$ 286 million) in 2010, leading to an increase of about 20 per cent in its overall operating cost.

While the airline experienced a noticeable decline in traffic, covering Tunis, Damascus, Aleppo, Sanaa, Aden, Bahrain, Cairo, Alexandria and Sharm El Sheikh destination. Cancelling more than 1,000 flights in 2011, reducing frequencies and eliminating unprofitable routes.

Although, RJ's operating revenue grew 6.3 percent last year to JOD683 million dinars (US$963 million) compared with the previous year despite a 20 percent rise in its operating costs, mainly on the back of higher fuel prices that cut into profits.

Meanwhile, Dabbas refuted media reports, the airline is in the process of being acquired by another airline in the region. “This is baseless,” Dabbas told The Jordan Times yesterday. Although he acknowledged, that RJ might consider selling shares, but stressed this is not “definite” yet.

ALIA- The Royal Jordanian Airlines PLC. (RJAL): Stock Price Movement Past 52 Week

During the past 52 months, Royal Jordanian stock price lost over 60% of its quoted stock price and close to 40% of its book value.  Source: Amman Stock Exchange

 

Currency conversion rate: US$ 1.41 =  Jordan Dinar 1.00