At the Bahrain International Airshow’s CEO Insight Program, Royal Jordanian Vice Chairman and CEO designate, Samer Majali, highlighted the challenges facing the airline industry. He discussed the impact of geopolitical crises, supply chain constraints, and environmental policies on Royal Jordanian and the aviation sector as a whole. Majali noted how events like COVID-19 and political conflicts have significantly affected the operations of Royal Jordanian, leading to a dramatic downturn in passenger traffic.
The global crises have had a far-reaching impact on airlines, with Royal Jordanian experiencing a 30% drop in European passenger traffic due to events in Gaza and Palestine. This decline in operations has forced the airline to end a profitable streak and face mass cancellations. Additionally, Majali highlighted the challenges faced by airlines worldwide in managing supply chain disruptions, particularly delays in obtaining new aircraft from manufacturers like Airbus and Boeing.
Majali also emphasized the burden placed on airlines to reduce carbon emissions in the face of environmental pressure. He criticized the lack of cooperation from other stakeholders in adopting sustainable practices, pointing to the European Union’s failure to implement a unified airspace policy as an example. The high cost and scarcity of Sustainable Aviation Fuel (SAF) further complicates airlines’ efforts to meet environmental targets, as they face penalties for non-compliance.
Reflecting on lessons learned from the COVID-19 pandemic, Majali called for greater global coordination in addressing sustainability challenges in the aviation industry. He stressed the importance of industry bodies like IATA and ICAO in fostering alignment to avoid a fragmented regulatory landscape. Majali highlighted the need for a unified global effort to transform aviation operations into a fair, efficient, and sustainable industry.
As Royal Jordanian navigates a competitive landscape dominated by larger carriers, Majali emphasized the importance of resilience and adaptability in the face of mounting challenges. He underscored the need for collaboration among regulators, suppliers, and airlines to create a sustainable aviation environment. Majali’s message at the CEO Insight Program was clear – addressing the challenges facing the aviation industry requires a concerted effort from all stakeholders to ensure a viable and sustainable future for the sector.
