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Routes Europe heads to Estonia

Routes Europe heads to Estonia

A record number of delegates are expected to attend this year's Routes Europe which is due to take place in Estonia’s capital of Tallinn in four days time.

What is the future for Bmi Regional? We ask the experts

What is the future for Bmi Regional? We ask the experts

Bmi Regional faces a new lease of life as a stand alone airline after it was purchased from IAG by a UK-based consortium, but does it have a viable business model? Adam Coulter asks the experts.

AirAsia X cleared to serve Beijing

AirAsia X cleared to serve Beijing

AirAsia X, the long-haul affiliate of low-cost carrier AirAsia, has announced it will swap its current service to Tianjin to begin serving Beijing from its base of Kuala Lumpur from June.

Wizz Air returns to Slovenia with two routes

Wizz Air returns to Slovenia with two routes

 

Wizz Air is to mark its return to the Ljubljana market with new routes to London Luton and Brussels South Charleroi from October.

 

Norwegian seeks permission for NY-Oslo route

Norwegian seeks permission for NY-Oslo route

Low-cost carrier Norwegian has formally applied to the US government for permission to operate a new long-haul route between New York and Oslo operated by a B787 Dreamliner.

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Royal Jordanian suspends routes and frequencies to cut costs

News Tuesday, 07 February 2012 12:38 Written by Dominic Welling

 

Royal Jordanian (RJ) is cutting five of its routes and reducing the frequencies on a number of others, in a bid to tackle rising costs and a decline in tourism due to events such as the Arab Spring.

 

The airline said that it would be suspending operations to Brussels, Munich and Alain in March and April, followed by a further two routes which will be revealed at a later date.

 

Furthermore, the company has also decided to reduce the number of frequencies to destinations including Rome, Vienna, Zurich, Geneva, Amsterdam, Colombo and Khartoum.

 

The carrier’s board of directors took the decision to suspend operations “in order to reduce the operating costs brought up by the soaring fuel prices and to offset the decline in tourism to the region, the outcome of the Arab spring and the political unrest”.

 

The five routes have been chosen based on “the assessment of the performance and economic feasibility of these stations”, the board added.

 

Meanwhile, RJ said it would cancel more flights during the year, which will be decided by the amount of bookings to certain destinations, and will keep tight control on all aspects of capital expenditure.

 

The airline has already stopped employing new personnel this year.

 

Hussein Dabbas, CEO of RJ, said that the airline would also consider reducing the size of its fleet in light of the changes.

The rise in the cost of fuel severely impacted the airline’s financial results for 2011, and accounted for a 20% increase in the overall operational cost of the company.

 

In addition, Dabbas said the Arab Spring and the political unrest that swept the Arab region last year has also played a significant part as the airline was forced to close some of its stations, such as Tripoli and Benghazi, for several months.

 

At the same time, other stations experienced a noticeable decline in traffic, such as Tunis, Damascus, Aleppo, Sana’a, Aden, Bahrain, Cairo, Alexandria and Sharm El Sheikh, resulting in the loss of hundreds of thousands of passengers.

 

Dabbas said: “The company conducted extensive studies aimed at finding the best possible solutions and techniques to mitigate the impact of the increase in fuel prices and the instability in the Arab region, as well as the impact of the economic crisis experienced the world over and particularly in the euro zone.

 

“It also based its decisions on the forecast that tourism to Jordan and the Middle East will decline due to all these challenges, as expected in the first quarter of 2012.”

 

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