He said that the government is currently preparing a national air transport strategy for the period 2008-2010, which will set the framework for operational and financial guidelines of the air transport industry in Jordan.

The strategy will stress the need to develop the civil aviation facilities in Jordan in an orderly, safe, secure and efficient manner, so as to meet the reasonable requirements of the public and users of air transport services. It also emphasizes the need to ensure that Jordanian airlines are competing as effectively as possible with other airlines in providing air transport services on international routes.

"In order to achieve the objectives of the strategy, the government is committed to continue the gradual transition towards liberalization till the end of 2010, after which, the civil aviation sector in Jordan will become deregulated and all restrictions and exclusivity agreements will be removed, and an open sky policy based on reciprocity will be implemented.

We will continue to recognize and support the vital role Royal Jordanian plays in promoting business and tourism, and its contribution to the national economy as the flag carrier of Jordan," Dahabi pointed out.

He also expressed confidence in the airline's ability to confront the challenges ahead, which include the emergence of many new carriers in the region and of those that operate under the low cost concept, the high oil prices that is now becoming a major burden on its budget and expected revenues, and the end of the exclusivity agreement, by 2010, whereby the company could face new local competition.

Dahabi expressed satisfaction and pride in RJ achievements, most notably the continuous growth and profits, saying that joining the oneworld alliance is a clear recognition by the world’s best airlines of RJ stature and capabilities. He also praised the fleet modernization program and introducing modern airliners so as to foster competitiveness in the global air transport industry.

The chairman of RJ's board of directors also spoke to the participants, lauding the successful role of the prime minister during his seven-year term as president of Royal Jordanian. That period, he said, will always be remembered as the time when the airline started preparing the groundwork for the transformation from a government-owned airline into a public shareholding company, fully privatized.

"2007 will no doubt be remembered as the year when RJ turned a new leaf, starting a new chapter in its long and sometimes challenging history, to become the first airline in the Middle East to join one of the three major airlines alliances, oneworld, and to turn government ownership over to the private sector. This fully privatized airline now has 55% of its shares owned by Jordanians. This historic turnover could be considered the most efficient and successful privatization process ever," said Lozi.

He reviewed the phases of the privatization process, which started with the government's appointment of Citibank as a consultant at the end of 2006 and ended with the floating of RJ shares on the stock market on Dec. 17, 2008. Jordanian ownership accounts for 56.2% of the total shares distributed as follows: the government retained 29%, of which 3% are allocated to the Jordanian armed forces & security agencies; the Social Security Corporation acquired 10%; 7.7% were allocated to RJ employees’ fund; 6% to retail investors and 3.5% to financial institutions. Regional investors acquired 9.49% and international investors acquired 34.12% of the total shares. Total proceeds amounted to $232 million.

2007 was a fruitful year, said Lozi, registering a $5 billion profit for the world airlines resulting from revenues exceeding 470 billion dollars. In this regard, he said that the industry needs $40 billion in profits just to cover the cost of capital.

This year will again be profitable; however, more profits could have been achieved had it not been for the ever-increasing oil prices. Lozi concluded his speech urging the participants and all employees to exert their utmost efforts to build on the accomplishments of previous years.

President/CEO Samer Majali expressed gratitude to his Excellency the prime minister for patronization this conference, which is testimony to the unequivocal support that His Majesty King Abdullah II and his government bestowed upon RJ throughout the years. He said that the period of his Excellency's presidency of the airline was instrumental in setting the course that has led it to what it is today.

Majali said that 2007 marked the end of an era and the beginning of a new one. The airline invested in the air transport industry after 9/11 and suspended the privatization process. A new network strategy with an intense regional operation at its core was accompanied by an optimal fleet renewal and expansion program, as well as by major investment in information technology and human resources. This paved the way for resuming the privatization process, which was accomplished successfully without the need for a strategic partner, listing 71% of the shares for underwriting and floating the shares on the stock market in December 2007.

The CEO mentioned that the airline has been the recipient of multiple international regional and national awards that came in acknowledgment of the achievements of Royal Jordanian employees who accomplished this task with no outside assistance. By 2007, the end of the era, the airline became at least twice the size it was in 2001 in terms of number of passengers, revenues, number of departures, etc. The company is profitable for the fourth year in a row.

According to Majali, RJ transported over 2.3 million passengers, an increase of 16% over the previous year. Revenues have also increased from JD447 million in 2006 to JD524 million in 2007, recording a 17% increase. It is the first time ever that revenues surpassed the half-a-billion dinar mark and, most importantly, the seat factor increased from 67% to 71% in 2007.

Costs, however, have also increased due to the increase in the price of oil, which skyrocketed during the past two years. In 2007, RJ fuel bill was JD165 million, compared to JD140 million in 2006 and only JD67 million in 2004. Now fuel cost represents over 33% of the total operating expense.

"New destinations were added in 2007 to our network: Montreal and Budapest. Earlier this year, the first flight ever to China was inaugurated; there will be three weekly flights to Hong Kong and soon Baku, the capital of Azerbaijan, will be added. We will utilize the network of our oneworld partners to reach beyond our gateways to over 700 destinations worldwide with a one-stop service from Amman," added Majali.

The company, that is presently operating 26 aircraft, will continue modernizing its fleet and introducing new aircraft to serve its long-, medium- and short-haul routes. It will also continue facilitating travel to passengers by automating procedures. The airline accomplished huge strides in the electronic ticketing, Internet booking, printing boarding passes at home and self check in at Queen Alia International Airport and Aqaba airport.

"A new head office is under construction and should be ready by 2010, and a new and ultra modern business lounge is being constructed at QAIA to handle our passengers. This lounge will include all kinds of facilities for the comfort of passengers; it will be ready by April of this year."

"We are now closing a chapter in RJ's history with the successful turnaround of the company, the joining of a global alliance and the privatization of the airline. We are also opening a new chapter in its existence as a fully privatized carrier, with an excellent reputation and a strong management team and staff. We will continue to develop and nurture the airline as the flag carrier of Jordan, in the service of the people under our enlightened leadership," Majali concluded the speech.

The conference discussed the operational and financial results achieved last year by the airline's 55 outstations. It will also present the marketing and operational plan for 2008, with a view to creating sales and marketing tools and boosting the company's market share worldwide in both passenger and cargo sector, especially after joining the oneworld airline alliance in April last year.

On Feb. 9, the participants attended workshops in the field of sales and ticketing, Internet booking engine and electronic ticketing, the frequent flyer program and others. They were apprised of the introduction of 12 Boeing 787 to serve the long-haul routes, and of the modernization and expansion plan of Queen Alia International Airport.