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    RJ implements restructuring plan to reduce Covid-19 losses

    June 15, 2021
    aviation

    RJ has reached an aircraft lease restructuring agreement with one of its larger lessors and is in the final stages of negotiations with three other lessors as part of efforts to mitigate the effect of closures and lockdowns imposed by governments around the world since the outbreak of Covid-19.

    The goal is for the airline to reduce losses anticipated for the forthcoming years and provide the necessary liquidity to fulfill its commitments and finance its operations.

    RJ Vice Chairman & CEO Samer Majali said: 'The plan’s main focus is to review the size and capacity of our fleet and to mitigate its high costs in view of the reduced utilisation of the aircraft during the Covid pandemic period. This will reduce the financial impact of aircraft ownership, particularly since aircraft leases make up 47 per cent of the airline’s fixed monthly costs.'

    The move will help the company secure some $40 million cash relief in the coming three years.

    tradearabia

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