As part of a plan for the privatization of Royal Jordanian (RJ), the airline will be transformed into a public shareholding company fully owned and operated by the Jordanian government. The resulting company, which is to be formally registered with the Ministry of Trade and Industry next week, will have initial paid-up capital of JD40 million, said an RJ source, who preferred anonymity.
Once this step has been taken, the company's privatzsation unit will look for a strategic partner to acquire a 40 percent share of the company, according to the sources.
Preliminary negotiations are underway between RJ and British Airways and the US-based Continental Airlines which are each bidding for the 40 percent equity in the partnership, but no deal is expected before a full assessment of RJ's financial assets has been completed, according to the source. The source stressed that the preliminary negotiations only focus on technical matters like the company's future operational policies among other points, but these negotiations have not yet been completed.
The source did not rule out the possibility of other world airlines in Europe, America and Asia submitting bids for the strategic partnership deal once the last stage of studies on the privatization process has been completed and RJ's assets are fully assessed.
RJ has introduced new terms of reference on its original tender documents for the sale of the engineering, maintenance and engine repair units in a bid to clinch the highest possible price, the source added. — ( Jordan Times )
By Issam Qadamani
© 2001 Mena Report (www.menareport.com)
