Driss Benhima, RAM Chief Executive (pictured), is a confident man If you are expecting caution during the global financial crisis, then you won't find an example in Morocco's flag carrier Royal Air Maroc (RAM). Going contrary to the general trend, Driss Benhima has just announced that RAM will order six new planes this month. This will bring its mainly Boeing fleet to fifty.Royal Air Maroc, one of the most profitable airlines in North Africa and is benefiting from the government's policy to increase tourism to 10 million visitors by 2010 from 8 million in 2008. The government is also encouraging the expansion of air transport, including low-cost flights.
Morocco signed an Open Skies agreement with the European Union in 2006 allowing new airline competitors, including low-budget carriers such as Ryanair and easyJet.
"We will put an order for six planes. We will sign the order deal by the end of this month," Benhima told a business conference in Casablanca.
He gave no more details on the order, but said RAM is looking beyond this year's economic crisis to develop its business and survive the competition from European airlines.
The Open Skies agreement spurred passenger traffic to grow by between 16 percent and 19 percent per year since 2006. Passenger traffic grew to 11.2 million in 2008 from 5.5 million in 2006, Benhima added.
But he expected air passenger traffic to shrink this year causing RAM to post its first loss in 10 years.
"We have a double-layer strategy for RAM. One is focusing on how to weather the crisis this year; and the other for past this crisis is to adopt a modified business plan that allows the airline to face the competition," he added.
RAM, which draws more than 70 percent of its revenue from European markets, and its low-cost Atlas Bleu subsidiary must embrace a different strategy than its competitors.
"Our competitors are strong with big fleets. We can not take them on with similar offers and promotions. We have to distinguish our business," he added.
Benhima said RAM will beef up its routes inside Morocco and expand further its growing operations in Africa.
Tags: Moroccan Morocco Fes, Maghreb news
4 comments:
Quote:Royal Air Maroc, one of the most profitable airlines in North Africa
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The main reason for this is the high prices they charge and the fact that morrocans don't have another choice but to book their flight with the RAM.
Shame!
All that is good and well, but what I want to know is ... when is RAM going to start a direct London-Fez route. Especially needed since Atlas Bleu stopped its route again!
When did Atlas Blue stop their Fez-London route again ?
I just checked their website and you can still book flights in April...
What is not being said, is that RAM is set to post its first loss in 10 years for the year 2009. After the shoddy service they have plagued Moroccans with; this is something they sorely deserve.
RAM has stewards and stewardesses that act like primadonna's... they add new meaning to discourteous service. RAM is also incredibly expensive for most flights throughout Africa. When you couple that with their horrible on time arrival record and their incredibly flaky website, where only foreigners are able to make reservations... and you have the perfect storm for a disaster in the making.
I only hope that other companies in Morocco take note of what happens when companies do not treat their customers properly... it can be done in good times when the consumer has no choices, but in bad times, all of the bad service choices and nepotism employed by companies come home to roost.
I am pretty sure we will see Moroccan hotels start to pay for ripping off customers over the past few years and hopefully by 2011 a more customer friendly, less nepotistic, more organized, harder working model comes out of the ashes of Moroccos economic crisis.
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