The Moroccan Government has decided shove up 1.6 billion dirham (MAD)* as part of a 9.3 billions dirham (MAD)* package covering 2011-2016 in loss-making national carrier Royal Air Maroc, Reuters Arabic service reported yesterday

Losses have been mounting, the airline citing growing competition, lower sales and higher fuel prices.
""The surge in fuel prices coupled with fierce competition from low-cost carriers under the Open Sky agreement with the European Union have added more pressure on the company,".

Royal Air Maroc intends to dispose its fleet of 4 Airbus A321 after acquiring them 5 years ago. The airline declined to give an explanation for this move. Earlier, the national carrier took steps to reduce its staff through voluntary redundancy.

Royal Air Maroc said it would be able to save 1 billion dirham (MAD)*, or 83 million dirham (MAD)* monthly, mostly staff and fixed overhead reduction targeting  1560 staff out of 5300 by 2013.

The Airline for the furture plan shall maintain its fleet of  Boeing 757, 747 it newly acquired  ATR-72/600 and awaiting deli very of 787 (Dreamliner)

There is no recent confirmation of the Government intention to sell 25 to 30% of the airline to a strategic partner. Although industry sources cite the Air France-KLM group, Iberia and Emirates have been contacted.

Background

The airline is owned 95.95% by the Moroccan government, 2.86% by Air France and 0.95% by International Airlines Group.

The subsidiaries of The Group Royal Air Maroc are:

• Royal Air Maroc
• Royal Air Maroc Express
• RAM Cargo
• Atlas Aérotechnic Industries
• Atlas Hospitality (Hotels)
• Atlas Catering Airlines Services
• RAM Academy
  
  

* 1,000,000 Moroccan Dirham (MAD) = 120,000 US Dollar