Tuesday, May 21, 2013

■ MOROCCO: Royal Air Maroc set to rebound as operating profits hit $83million in 2012.

Royal Air Maroc RAMFollowing a record USD50million (MAD499million) net loss posted in 2011 which necessitated a USD193million capital injection by the Moroccan government, Royal Air Maroc (AT), says it has generated an operating profit of USD83million (MAD718million) for its most recent 2012 Financial Year with turnover for the year rising 7% to USD1.6billion (EUR1.25billion).

Royal Air Maroc
Royal Air Maroc 787
According to the carrier's CEO, Driss Benhima, the result far exceeds goals set down in the airline's government-backed bailout's conditions stipulated in September 2011, which made provision for the cutting of its workforce by 30 percent to around 4'000, renewal of its fleet to reduce fuel consumption, and the renewal of its operations.

Speaking in the Moroccan capital, Rabat, during the 2012 review of RAM by the Moroccan Committee on Finance and Economic Development before the House of Representatives, Mr Benhima noted that the operating results "do not take into account the the transactions obtained by the airline in connection with the abandonment of unnecessary operations."

The success of the restructuring programme is clearly reflected in the results, said the CEO. He further pointed out that due to the reduction of production costs and despite the cancellation of several routes and falling passenger numbers, the airline's added value had improved 40% with overall income improving by 52% on 2011.

Amongst other rationalization measures RAM has embarked on are the disposal of  10 aircraft including four Airbus A321s and five Boeing 737-500 which it hoped, would raise roughly USD100million.