The airline was established on 9 December 1963 and started operations on 15 December 1963 after a royal decree by the late King Hussein. It was named Alia (or Aalya) after King Hussein's eldest child, Princess Alia bint Al Hussein of Jordan (born on 13 February 1956). It is a common misconception that the airline was named after the King's third wife, Queen Alia whom King Hussein did not marry until 1972. The airline was founded with capital from private shareholders but the Jordanian government later took over the company