The privatisation programme for former subsidiaries of the Jordanian national carrier Royal Jordanian continue apace – but stops short of the airline itself for now.
The Executive Privatisation Commission, set up to supervise implementation of the programme, announced details at the show of the international tender to acquire two maintenance and engineering operations divested from Royal Jordanian.
Profit
Both companies, Jordan Aircraft Maintenance (JorAMCo) and Jordan Airmotive (JALCo) have just reported profitable year-end performances, respectively $4 million and $2 million.
Their offer follows previous sales of the Airports Duty Free Shops (ADFS) to Spanish group Aldeasa, and Jordan Flight Catering (JFCC) to the British Alpha Group and a consortium of local investors.
The duty free business was sold lock, stock and barrel, while Royal Jordanian maintained a 20% stake in the catering enterprise.
Abdel-Rahman M El-Khatib, director of the air transport sector at the Executive Privatisation Commission, said the two companies could be sold entirely or partly, depending on the investors, and reported advance interest from undisclosed parties ahead of the recent privatisation announcement in Amman.
He said he expected the evaluation and acquisition process could even be wrapped up within six months, given the profitable state of the two companies.
Although privatisation of the national carrier has been on the agenda in recent years, El-Khatib said the cataclysmic events of 11 September had put airline acquisition on hold throughout the world.
He said the airline would focus on restructuring fleet and routes and focus on alliances to make it an attractive proposition for potential purchasers.
On the current acquisition offer, he commented: "We take pride in the performance of JorAMCo and JALCo, which have both attained advanced levels in the fields of aircraft and aircraft engine repair.
Foundation
"Since their foundation the companies have earned remarkable reputations as providers of high-quality and highly competitive services which have enabled them to build a large client base in various parts of the Middle East, Asia, America, Europe and Africa."
The two companies are FAA and JAA certified and have been granted tax free status and other privileges at their special free zones at the Queen Alia International Airport.
Source: Flight Daily News
