Royal Jordanian (RJ) has taken a new step in its effort to restructure following an agreement to sell 80% of its catering arm, Jordan Flight Catering, to UK-based Alpha for $20 million.

The sale is part of a reorganisation which has already involved the sale of Jordan Airport's duty free shop to Spain's Aldeasa for $60.1 million and Jordan Airline Training & Simulation to FlightSafety Boeing for a sum close to $20 million.

Proceeds from the sales are being used to reduce airline debts, which are currently running at a level of around $650 million.

At the same time, the Jordanian flag carrier has so far failed to secure a strategic partner for its core airline operations. Talks have been held over the last few months with a number of airlines including British Airways and Continental Airlines.

Late last month the struggling airline also announced a restructuring of its management replacing eight vice presidents with two deputy presidents - one of whom will handle operations and the other who will be responsible for commercial and support activities. In the past 18 months, the workforce has been cut from 4,500 to 3,600, mainly through natural wastage.

Source: Flight International