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Royal Jordanian Airlines SWOT and PESTLE Analysis

ID : 521680053| Apr 2023| 21 pages

COMPANY PROFILE -Royal Jordanian Airlines

Business Sector :Aviation

Operating Geography :Jordan, Asia, Global

About Royal Jordanian Airlines :

Royal Jordanian Airlines, originally known as Alia Royal Jordanian Airlines, is Jordan's national airline, with head office in Amman. With about 500 flights each week and at least 110 daily departures, the airline conducts scheduled international services across four continents from its primary base at Queen Alia International Airport. Following a royal mandate granted by the late King Hussein, the airline was created on December 9, 1963, and began operations on December 15, 1963. Around 30 aircraft of various types are in the company's fleet, including the A340, A330, A321, A319, Embraer 195, and Embraer 175. In its aircraft, the airline offers luxurious seats, in-flight entertainment, and dining services. Its planes transport a wide range of cargo, including jewels, vulnerable, risky commodities, animals, and mail and courier deliveries. The company also provides ground handling services including luggage handling and ramp services. The airline is part of the One World Alliance, which comprises American Airlines, British Airways, Iberia, Cathay Pacific, and Japan Airlines, among others. From Amman Civil Airport in Marka, Royal Wings, the Company's subsidiary, offers chartered flights. As of early 2023, Royal Jordanian employed over 3200 people.

Royal Jordanian Airlines' USP lies in it being the dominant carrier in Amman and having a 60-stop global destination network. The mission statement of the Royal Jordanian Airlines reads, "To be the airline of choice, connecting Jordan and the Levant with the world. Mission: To ensure our customers always recommend our airline because we consistently provide: • The highest level of safety, security and reliability. A seamless travel experience with the exceptional customer care".

Royal Jordanian Airlines Revenue :


JD 611.8 million - FY ending 31st December 2022 (y-o-y growth 71%)
JD 357 million - FY ending 31st December 2021

Competitive Analysis of Royal Jordanian Airlines

SWOT
PESTLE
The SWOT analysis for Royal Jordanian is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Large network access through membership of Oneworld Alliance
2. Young fleet of aircraft averaging five years
3. Jordan government support since its inception
4. Ranked within top 20 airlines by AirlineRatings.com
1. Alarmingly low revenues for FY 2020-21
2. Huge loss of approx. 70% of its capital
3. Decreasing net assets over the past years
OpportunitiesThreats
1. Rising as a market leader in Levant region
2. Ex CEO’s rejoining might help in company’s revival
1. Electronic failures are a growing concern
2. Liquidation of company very likely as per Jordan Company’s Law
3. Rising competition with new airline companies in Middle East
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Royal Jordanian Airlines

Strength

1. Large network access through membership of Oneworld Alliance: Oneworld Alliance is a well-known global association of 14 global airlines serving customers of 170 destinations worldwide. The alliance contributes to the well-coordinated working of these airlines, ensuring smooth customer trips and reducing competition among the airlines. Major airline institutions like British Airways, Japan Airlines, American Airlines, Qatar Airways, etc. are among its prominent members. Its latest member Alaska Airlines joined in 2021. The alliance provides easier access to various airports and hassle-free connections of different airlines for customers to reach their destinations. Royal Jordanian Airlines enjoys these benefits being a member of this alliance, which would not have been possible without it.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

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TABLE OF CONTENTS
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References used in Royal Jordanian Airlines SWOT & PESTLE Analysis Report

1. Royal Jordanian marks 57 years of operations - https://www.zawya.com/mena/en/business/story/Royal_Jordanian_marks_57_years_of_operations-SNG_195183735/
2. Royal Jordanian ranked in AirlineRatings.com top 20 global airlines list - https://rj.com/en/meet-rj/our-media-center/news/2020/01/07/royal-jordanian-ranked-in-airlineratings
3. Jordan’s Royal Rift Underlines Its Need For Reform - https://www.bloomberg.com/opinion/articles/2021-04-10/jordan-s-royal-rift-underlines-its-need-for-reform
4. Israel’s Internal Politics Raise Tensions with Jordan - https://www.voanews.com/middle-east/israels-internal-politics-raise-tensions-jordan
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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