Can Aviation Navigate the Perfect Storm? Royal Jordanian Vice Chairman Shares His Insights

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

Email: ashen@newsobahrain.com

In a candid discussion at the Bahrain International Airshow’s CEOs Insight Program, Royal Jordanian Vice Chairman and CEO designate Samer Majali dissected the mounting challenges facing the airline industry.

His remarks covered the devastating impact of geopolitical crises, supply chain constraints, and environmental policies, all of which have hampered Royal Jordanian’s performance and cast a long shadow over the industry’s path forward.

Geopolitical Disruptions and Regional Instability

Majali outlined the far-reaching impact of global crises on airlines, noting how events like COVID-19, ash cloud disruptions, and the Ukraine crisis have all sent ripple effects through the aviation sector. Reflecting on Royal Jordanian’s situation, he acknowledged how “the unfortunate events in Gaza and Palestine” over the past year have led to a dramatic downturn in operations.

“Jordan and Royal Jordanian is probably the third-largest entity affected, after Palestine itself and Lebanon,” Majali observed. Royal Jordanian’s European passenger traffic, vital for tourism and business, plummeted by 30% after the crisis began, forcing the airline to end a profitable nine-month streak in 2023 with a loss due to mass cancellations.

Supply Chain Crunch and Fleet Delays

Majali also turned to the industry’s supply chain woes, which have affected not only Royal Jordanian but carriers worldwide. With aircraft manufacturers like Airbus and Boeing grappling with delays, airlines are caught in an “intense capacity management” struggle.

Royal Jordanian, in the midst of a comprehensive fleet renewal, faces difficulties obtaining new and even used aircraft to meet demand. “The demand is high not only for new planes but for older aircraft too,” Majali noted, adding that these delays complicate the airline’s efforts to expand its narrowbody and widebody fleets over the next 15 to 18 months.

Environmental Pressure and a Disjointed Response 

Majali was outspoken about the uneven burden placed on airlines to reduce carbon emissions, which account for just 2-3% of global emissions. He highlighted the irony of airlines being taxed and penalized under green policies while other stakeholders lag in adopting reforms.

A clear example, he explained, is the European Union’s ongoing failure to implement a unified airspace policy, known as the Single European Sky. “Consolidating airspace alone could achieve a 10-11% fuel saving almost immediately,” he said, criticizing governments for instead imposing costly penalties and requirements on airlines.

The adoption of Sustainable Aviation Fuel (SAF) exemplifies this disparity. Governments are mandating that airlines incorporate at least 10% SAF within the next few years, but Majali noted the scarcity and high cost of SAF as major obstacles.

“We try to find SAF, it’s more expensive, and when it’s unavailable, we get penalized,” he explained, underscoring the struggle airlines face in meeting environmental targets amid minimal cooperation from other sectors.

Reflecting on Lessons from COVID-19 

Majali urged for greater global coordination, recalling the chaotic, “uncoordinated” response to COVID-19 as an enduring lesson for sustainable aviation practices.

During the pandemic, border closures and re-openings were often arbitrary, creating a patchwork of regulations that he warns could be repeated in today’s sustainable aviation regime.

Majali called on industry bodies like IATA and ICAO to foster better alignment, fearing that without it, airlines would continue to bear the brunt of fragmented environmental policies.

As Royal Jordanian looks toward its future in a region dominated by larger carriers, Majali’s message was clear - achieving resilience in an increasingly complex landscape requires more than just airline adaptability. It calls for a unified global effort, from regulators to suppliers, to transform aviation’s operational reality into one that is fair, efficient, and sustainable.