The Jordanian Government has announced its intention to sell two aviation support services that were established as a result of the restructuring of Jordan's flag carrier, Royal Jordanian Airlines (RJ).
Jordan Aircraft Maintenance (JorAMCo) and Jordan Airmotive (JALCo) are to be divested through Jordan's Executive Privatization Commission (EPC) through an international competitive sale, stated a press release.
JorAMCo, which provides aircraft maintenance services, and JALCo, which repairs and overhauls aircraft engines, originally both served as RJ's engineering component and became government-owned private entities when the airline was restructured. The Government's intention is to sell all the shares of the companies to the private sector, with the possibility of allocating 20 percent of the government's stake in each to RJ in order to maintain ties to the carrier.
"The sale of the two companies will pave the way for bigger private sector involvement in the development of Jordan's aviation sector.," said EPC's Aviation Sector Director, Eng. Abdel Rahman El-Khatib.
The decision to restructure RJ was taken in 1999, after which the airline's non-core activities including JALCo and JorAMCo were turned over to the RJ Investments Company in preparation for privatization, while core aviation business was registered in February 2001 as a public shareholding company.
Both companies have well established client bases in the Middle East, Asia, America, Europe and Africa, and they have won certification from major international civil aviation authorities that include the Jordan Civil Aviation Authority, the US Federal Aviation Administration (FAA) and Europe's Joint Aviation Authorities (JAA).
The companies function in special free zones at the Queen Alia International Airport, offering tax exemptions and other privileges. Despite a 24-month downturn in the global aviation industry, both companies have maintained consistently healthy revenues and steady profits creating a very attractive investment opportunity.
As part of Jordan's aviation overhaul, Airport Duty Free Shops (ADFS) was sold to the Spanish group Aldeasa, and 80 percent of the shares in Jordan Flight Catering Company (JFCC) were sold to the British Alpha Group and local investors. RJ retained a 20 percent stake in JFCC.
EPC is the governmental body tasked with the overseeing Jordan's privatization program. It functions independently and is affiliated to the Jordan Privatization Council, headed by the Prime Minister. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
