Aviation: Struggling Royal Jordanian raises capital

By $290 million, carrier recorded losses of $50 mln in 2014

04 May, 11:36

    (ANSAmed) - AMMAN, MAY 4 - Financially struggling Royal Jordanian's (RJ) agreed to raise its capital by JD200 million (USD 290 million) in an attempt to save the national carrier from bankruptcy, company officials have announced today.

    RJ last year reported losses of nearly USD 55 million and was under risk of being liquidated. "The capital will be increased by 200 million shares/dinars, making the authorised share capital 246.4 million shares/dinars through public offering and/or private offering to the shareholders, as may be decided by the board of directors," the statement said following a board meeting on Saturday.

    The raise will extend until 2019, and to be implemented on three phases. "The first of which will start in 2015 and the increase will be by JD100 million; the capital will be increased by another JD100 million in the coming years throughout the period required to implement the restructuring plan (2015-19)," said a company statement.

    As the company struggled, officials have decided to cancel several routs to limit losses including destinations like Accra, Alexandria, Colombo, Milan, Al Ain, Mumbai, Lagos and Delhi.

    RJ also suspended during the year flights to Tripoli, Benghazi, Misrata and Mosul, in addition to stopping services to Damascus and Aleppo since July 2012, all due to security concerns.

    Flights to Sanaa and Aden have been suspended since mid-February 2015.(ANSAmed).

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