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FINANCIAL NEWS
RJ seeks compensation from Boeing
09 Jun 2011
(MENAFN) Royal Jordanian’s (RJ) chief executive, Hussein Dabbas, said that the carrier would ask for compensation for the delayed USD2.2 billion 787 Dreamliner jets it ordered from Boeing four years ago, reported The National.
Dabbas added that the delay resulted in restraining the carrier’s expansion plans, which resulted in reducing earnings; therefore, Royal Jordanian started negotiations to reach a settlement with Boeing, adding that the ordered planes wouldn’t be delivered until 2014’s first quarter.
He also said that the airline’s profit in 2010 reached USD13.5 million, it carried 3 million passengers. Furthermore, after budgeting for an average oil price of USD85 per barrel in 2011, the airline was struggling to deal with the oil current price that reached more than USD100.
It is worth noting that also Qatar Airways, another Boeing customer of the delayed jet, is seeking compensation provided under its purchase contract.
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