00:00 "Today, a deal was signed with Boeing to buy six Boeing 787-9 aircraft.
00:10 These aircraft will replace and upgrade the 787-8 aircraft that we have in the Jordanian Royal Air Force.
00:23 These six aircrafts were contracted with Boeing to be delivered.
00:30 The search for financing for these aircrafts will be carried out, whether it is capital financing or operating financing.
00:38 Let me ask you about the total value of the deal and the part that will be financed in itself or will it be all financial facilities?
00:48 In addition to the six aircrafts, we have three aircrafts that we have already contracted with them through operating financing.
00:57 These will arrive before 2025-2026.
01:02 The Boeing deal will start delivery from 2027 to 2030.
01:08 These six aircrafts will be partially financed through capital banks.
01:18 The Jordanian Royal Air Force will take a loan from the bank to pay for the plane's price and will pay the bank.
01:23 At the end of the period, the plane will be owned.
01:26 And through the sale and leaseback, the plane will be sold to the tenant and will be re-rented by the Jordanian Royal Air Force.
01:34 There are two types of this, and of course, according to the financial conditions at the time.
01:37 With the rising cost of financing and the high interest rates, does this create pressure on the company's plans to expand and add more aircrafts to the fleet?
01:46 Of course, the cost of financing increases, but this is the way of the world, we have to deal with it.
01:54 As you know, there are more challenges than that in our region.
01:58 One of them is the high interest rates, but we also have other challenges to deal with.
02:03 What are the geopolitical challenges in the region that affect the operations of the company?
02:08 The Jordanian Royal Air Force achieved a net profit of about 11 million dinars in the first nine months of this year.
02:17 On a profit of about 500 or 600 million dinars.
02:21 500 million dinars, 550 million dinars.
02:24 This is a modest profit, but positive.
02:31 This is one of the shortcomings of airline companies, which have a kind of profit in their operations in this short period after COVID.
02:42 Of course, we expected that the profits would be increased by the end of the year.
02:47 But unfortunately, as a result of the situation in the region, there has been a decline in the flights of passengers to the region, especially the tourist flights.
02:57 And also, of course, the cost of operation has increased because we have additional flights to get away from the military operations.
03:08 What is the percentage of the decline in tourist flights? And what is the percentage of the cost of operation?
03:17 And to what extent will this affect the results of the fourth quarter?
03:19 Will we try again to lose or will we reach the point of equilibrium at the end of this year?
03:24 First, the decline in flights is about 15%.
03:33 The decline in flights has increased the cost of flights to Europe and the United States by about 25%.
03:47 This is an additional cost that has nothing to do with the price of tickets.
03:52 We can't increase the price of tickets to compensate for this.
03:56 Unfortunately, the decline in flights has increased the cost of flights.
04:00 Will we reach the point of equilibrium at the end of this year?
04:03 This depends on the length of the crisis.
04:05 Will the crisis continue? Will it end quickly?
04:08 And what is the opinion of the people about the situation in the region?
04:12 Are they comfortable in the region?
04:14 Thank God, Jordan is a safe country, although it is very close to the area of the incident.
04:23 But it is a stable and safe country.
04:26 And I encourage people to visit Jordan at all times.
04:28 Since the political horizon in the region is not far away,
04:31 how much will the company's revenues decline in the current quarter?
04:37 We don't know yet, because the quarter is not over yet.
04:41 But we hope to reach the point of equilibrium as soon as possible.
04:46 After we made these profits in the first nine months.
04:49 In any case, the performance of Jordan's royal family in 2023 is much better than in 2022.
04:55 And of course, much better than in 2021.
04:57 The process continues to improve every year.
05:01 Of course, this is a small crisis that affected us.
05:04 We will deal with it, as we deal with all the crises that have been raging in the kingdom and in the region over the years.
05:11 How is the company's capital improvement going at the current stage?
05:15 You have good information.
05:18 The cumulative losses of the Jordanian royal family as a result of COVID-19 are more than the capital.
05:29 We have a long-term discussion with the Jordanian government,
05:34 which is the main owner of the Jordanian royal family now.
05:38 About 90% of the Jordanian royal family owns the shares.
05:42 The discussion is how to raise the capital.
05:47 The government has provided a small amount of money in terms of increasing the capital as a critical factor.
05:52 It also provided Jordanian royal family shares so that we can raise the capital.
05:58 And now, in the coming weeks, the procedures related to this process will be terminated.
06:04 So that the capital becomes more than the cumulative losses of about 150 million dinars.
06:12 Will the losses be completely paid off?
06:15 Not completely. The cumulative losses will be about 50%.
06:20 The old capital will be about 62% of the old capital.
06:25 And the new capital will be added.
06:28 The new capital will improve the Jordanian royal capital and get out of the financial crisis.
06:40 Will there be a guarantee for the capital?
06:51 No, the Jordanian royal family will issue new capital to the government.
06:56 This is how it will happen.
06:57 We will receive new capital and issue new capital to the Jordanian royal family.
07:01 The government's ownership of the Jordanian royal family will increase.
07:09 Finally, how much will the fuel prices affect the operating costs?
07:13 Jordan is one of the countries that has seen an increase in fuel prices.
07:17 We are affected by fuel prices like all other countries.
07:21 But Jordan is especially affected because it is not an oil producing country.
07:27 And it does not have cheap oil.
07:30 The Jordanian royal family has the most expensive fuel price in the world.
07:34 It is 15% more expensive than the fuel cost in the world.
07:39 This is a strange situation because most companies get the best fuel prices at their peak.
07:48 The fuel prices in the region are also very high.
07:54 The cheapest fuel in the world is in the US and Europe.
07:58 This is a strange situation.
08:00 Last year, when the fuel prices in the region rose significantly due to the war in Ukraine,
08:05 the fuel prices in the region rose 53% compared to the total fuel prices in the region in the summer of 2022.
08:17 Now, the fuel prices in the region are about 42%.
08:22 The average fuel price in the Jordanian royal family is about 30%.
08:25 Yes, it is about 30% or 25% depending on the company.
08:28 The fuel price in the region is one of the biggest factors.
08:31 Although it is a small company, the fuel price in the region is very high.
08:38 This is a big burden on the Jordanian royal family.
08:41 I have to ask you, after the increase in the capital, what is the target?
08:46 The target is to continue improving the performance of the Jordanian royal family.
08:52 We want to achieve profits and we do not want the main investors to support the royal family.
09:02 We do not want to be biased against the government.
09:06 We want to restore the interest in the Jordanian royal family as an investment.
09:13 The Jordanian royal family was established in 2007-2008.
09:16 It is one of the first Arab airlines that changed from the public sector to the private sector.
09:22 In 2007-2008, the government reduced its ownership in the Jordanian royal family to 29%.
09:29 The social security was 10%.
09:32 61% was owned by shareholders, individual shareholders and institutions.
09:37 The royal family has been on this basis for a long time.
09:40 Unfortunately, the events in the region forced the government to invest a new capital in the Jordanian royal family.
09:47 Hopefully, in the future, there will be a new interest in the Jordanian royal family as a new investment.
09:55 Whether it is a private or a strategic investor.
09:59 I want to ask you about the debt.
10:01 How much is the total value of the Jordanian royal family?
10:04 How much is the average or minimum amount?
10:09 The Jordanian royal family, like all airlines, always has a debt.
10:13 The minimum amount of the future rental of aircraft is the minimum amount of the debt.
10:18 When you contract a 12-year-old plane with a minimum amount, this is the minimum amount of the debt.
10:23 A large part of the Jordanian royal family's debt is the minimum amount of the rental until the end of the contract.
10:28 This is very normal.
10:30 We have a small amount of money for banks.
10:34 I don't know the exact number.
10:37 But during the COVID-19 pandemic, the Jordanian royal family paid all its debts.
10:47 It negotiated with the airlines and reduced the fees.
10:51 It has not defaulted on any payment since the COVID-19 pandemic.
10:59 The Jordanian royal family has performed well financially.
