Strategic Marketing Management
Strategic Marketing Management Royal Jordanian Airlines
Q 1. Select and name any Company you are familiar with and describe its business?
Part A
Over the years, airlines have successfully streamlined their operations, improved efficiency, made substantial technological advances, and tightened costs. Value-adding benefits such as reward systems have also been incorporated, as well as vast improvements in services provided and safety of travel. The impact of these changes has been passed on to the end consumer in the form of lower ticket prices and better quality of service. Noteworthy is the fact that in spite of the extensive investment made by airline companies, the tremendous growth in operations and revenues, and the successful endeavors at cost cutting, the airline industry does not appear to be reaping the rewards of its efforts.
Royal Jordanian Airlines was established as Jordan’s national carrier in 1963, with three aircrafts travelling to four regional destinations. It has since expanded to incorporate a fleet of 33 aircrafts, travelling to almost sixty destinations worldwide. The Company’s paid up capital amounts to 84.37 million shares/JOD. The Company’s operations include the carrying out of scheduled and chartered air transport of passengers, cargo, and mail, in addition of offering aircraft handling services. In February 2001, the Company was transformed into a public shareholding company in preparation for its privatization as part of Jordan’s privatization programme. The first stage in the privatization process entailed the selling-off of non-core operations, which included the duty-free shops, maintenance, catering and training businesses. Finally, in 2007, the Government of Jordan sold 71% of its stock to the public through an initial public offering, and allocated 7.7% of the stock to the Royal Jordanian Employees Fund, thereby retaining its position as the Company’s largest shareholder.
Q 1. Select and name any Company you are familiar with and describe its business?
Part A
Over the years, airlines have successfully streamlined their operations, improved efficiency, made substantial technological advances, and tightened costs. Value-adding benefits such as reward systems have also been incorporated, as well as vast improvements in services provided and safety of travel. The impact of these changes has been passed on to the end consumer in the form of lower ticket prices and better quality of service. Noteworthy is the fact that in spite of the extensive investment made by airline companies, the tremendous growth in operations and revenues, and the successful endeavors at cost cutting, the airline industry does not appear to be reaping the rewards of its efforts.
Royal Jordanian Airlines was established as Jordan’s national carrier in 1963, with three aircrafts travelling to four regional destinations. It has since expanded to incorporate a fleet of 33 aircrafts, travelling to almost sixty destinations worldwide. The Company’s paid up capital amounts to 84.37 million shares/JOD. The Company’s operations include the carrying out of scheduled and chartered air transport of passengers, cargo, and mail, in addition of offering aircraft handling services. In February 2001, the Company was transformed into a public shareholding company in preparation for its privatization as part of Jordan’s privatization programme. The first stage in the privatization process entailed the selling-off of non-core operations, which included the duty-free shops, maintenance, catering and training businesses. Finally, in 2007, the Government of Jordan sold 71% of its stock to the public through an initial public offering, and allocated 7.7% of the stock to the Royal Jordanian Employees Fund, thereby retaining its position as the Company’s largest shareholder.
References: www.rj.com www.wikipedia.org www.gds.com Golden, Lara Lynn (20 May 2007). Press release "Royal Jordanian negotiating for 12 787s through direct purchase and lease contracts Ammari, Siba Sami (27 August 2008). Press release "RJ reports 18% increase in passenger numbers last month Royal Jordanian: RJ News, February 23, 2011 Press release "RJ celebrates its 45th anniversary tomorrow". AME Info FZ LLC / Emap Limited. 14 December 2008. Press release "RJ awarded "Airline of the Year 2007" by Air Finance Journal". AME Info FZ LLC / Emap Limited. 23 June 2008. Strengths Weaknesses