Lahcen Haddad Latest Morocco Op-ed Opinion Royal Air Maroc (RAM) Tourism in Morocco

"Royal Air Maroc, Leading and Dreaming to Fly Higher"

Rabat – In the midst of current air visitors progress, RAM has grow to be a well known firm that innovates to stay aggressive in a extremely challenging and high-risk market.

RAM is as a result of 10 years in the past was higher controlled than earlier than. Its Board meets recurrently to make strategic selections. Within the aviation business you could have to be reactive and find a way to make selections, each tactical and strategic, intelligently fast.

RAM is strongly current in West Africa and historically very lively in Western Europe. In Africa, the blending of in a single day stays and day by day flights around Europe, around Casablanca city middle, which has been in use for 20 years and has been used over time, provides Morocco a big competitive edge.

In Africa, RAM can also be a socially accountable company that helps public and personal local efforts to promote cultural and economic activities. The decision of the corporate not to cancel flights to the websites targeted by the Ebola virus in August 2014 was highly appreciated in West Africa and the entire continent

Diversifying the market has seen a big step ahead when Dreamliner arrived (ordered 6 years in the past) and flights to Sao Paolo, Rio de Janeiro. , Washington, Miami and Boston. Doha and South Asia are being shared with Qatari Airlines, and China continues to be on the long-standing agenda of continental flights

Nairobi's flight was carried out by Boeing 737, which frequently stops at Djamena, but was canceled as a result of the circumstances were not too favorable. Nevertheless, East Africa is an fascinating market regardless of the dominance of Ethiopian airways, Kenya Airways and Emirates.

Registration and practice providers are still enhancing, but there’s still so much to do when it comes to communication, employees efficiency and customer satisfaction. Lately, flights are recognized to have fewer delays than before, however the firm continues to be a disadvantage to utilizing aircraft as compensation for technical problems.

Company Efficiency Hajjin (pilgrimage) continues to be unprofitable because the utilization price by no means exceeds 50% (airplanes return to Saudi Arabia when pilgrimage begins and depart Morocco to empty pilgrims at the finish). Nevertheless, RAM makes use of these flights with concern for the religious well-being of Moroccan clients.

The newest report by the Moroccan Courtroom of Auditors takes under consideration the risks confronted by the Moroccan national airline – tourism volatility (worsening international turbulence and geostrategic state of affairs) and the buildup of VAT refund debts (of which 1.5 billion MAD was not repaid to the company till 2018). The latter danger can have a unfavorable impression on the monetary health of RAM

RAM must keep its independence, however it is nonetheless a public firm serving the pursuits of the Moroccan state and the Moroccan financial system. It’s subsequently up to the Authorities to establish strategic tips for diplomacy, tourism improvement and the isolated areas of the outermost regions

. Morocco included selections to scale back the range of RAM assets (by encouraging it to sell to resorts) and to scale back its potential to practice air passengers and different airline employees. The precept of canceling non-profitable flights shouldn’t have been utilized to tourist destinations reminiscent of Poland (an rising market with a big hospitality potential).

The longer term RAM technique must bear in mind the threats and alternatives

dealing with the aggressive benefit of West Africa by corporations with vital assets comparable to Turkish Airways, Air France or Emirates, or corporations with big progress, similar to Air Algérie (prepared to make investments $ 25 billion to develop his fleet of aircraft and particularly its presence in Africa.)

The technique of the Casablanca Middle sees its limits when the expansion of West Africa reaches its peak. At the similar time, there can be a extra dynamic mannequin focusing on tourist locations reminiscent of Marrakech and Agadir, rising locations (similar to Fez, Rabat, Tangiers, Nador / Oujda) in addition to the Casablanca Middle (whose third terminal is predicted to be

Vacationer locations comparable to Marrakech and Agadir supply low value airlines Low Value Management Fashions Based mostly on an Aggressive Revenue Administration Technique The vacationer destinations created by RAM slots (especially in Marrakech and Agadir) are nonetheless extra aggressive, especially when it comes to pricing.

Subsequently, RAM may have to significantly enhance quality in the future if it needs to get lots of power within the international market.

Sixty or perhaps a hundred planes usually are not r so that RAM can reap the benefits of the One World network it intends to take part 2020. It is crucial to change the attitude and the business model. The RAM needs to have 300 planes by 2035 whether it is going to get enough energy to go and search value everywhere in the world.

The leading markets for airways are the USA, the United Kingdom, Germany, Russia and China. These markets are virtually absolutely built-in, but RAM can develop, especially in Chicago, Atlanta and Houston, China, in addition to Beijing, Shanghai and Hong Kong

. progress potential in Latin America (Buenos Aires, Sao Paolo, Rio de Janeiro, Santiago, Mexico City, Bogota, Lima and Caracas) and Asia-Pacific (Jakarta, Manila, Tokyo, Bangkok, Kuala Lumpur and Singapore) [19659002] To realize this, RAM should significantly improve the fleet and purchase plenty of lengthy courier plane comparable to Boeing 777 and 787 or Airbus 380. Clever connections on the east coast of these markets / destinations and the Maghreb, West Africa, the Center East, Western Europe and even america will construct aggressive advertising strategies and proactive income management instruments.

The typical progress potential, akin to East Africa, Japanese Europe and the Middle East, may be

South Africa, Central Asia and Pakistan and India require long-haul plane. The first merchandise might be delivered to passengers from Europe, North Africa and America, while Central Asia, Pakistan and India could be served from Latin America, West Africa and the Maghreb

In the meantime, it’s needed to create four low-cost satellite tv for pc corporations with ATRs, Embraers, and Boeing 737, complementing RAM at local and regional ranges, and serving as scarce feeders for his or her hubs.

The primary to guarantee inner flights in cooperation with the areas. One other low-cost flight to Western Algeria, Southern Spain, Corsica, Portugal and the Canary Islands

The third, which would merely be a tourist, is focused at small and medium-sized markets similar to Slovakia, Hungary, the Czech Republic, the Balkans, Romania, Bulgaria and troublesome to attain Cities in Sardinia, Sicily, Cyprus, East France, Galicia and the Basque Country, East Germany, Wales, Iceland, and so on. Fourth sort focuses on Hajj and

A large airline needs a number of low value airways to operate troublesome flights and serve individual areas and locations at costs, suitable for travelers from these markets.

The passengers that this fleet reaches at Casablanca airport should have a fourth big terminal.

Benslimane Airport have to be expanded and upgraded to carry low value, domestic flights, ATR and Embraer aircraft. Mohammed V Airport is used to serve national airlines, scheduled flights and giant aircraft.

It’s clear that prices will determine the power of the longer term RAM fleet, but totally different mechanisms have to be used to finance this strategic activity over 15 years. The federal government must purchase the plane and arrange a state agency that may make them out there to RAM at competitive prices. Leasing can also be an choice for a specific fleet.

In addition to government-guaranteed debt, the bond market is an choice to contemplate making the RAM system an entire package deal of monetary belongings with the appropriate

Unimaginable for the longer term is important. Profitability just isn’t restricted to stability sheets and financial statements; On the contrary, the benefits are financial, diplomatic, political and cultural.

General profitability is a strategic objective; Solely then might RAM fulfill its slogan to be Moroccan "wings" of change and unrest on the planet. With will, faith and a clear imaginative and prescient, RAM can achieve world-class ranges. Nevertheless, we must start right here and now; 2035 is tomorrow;

Dr. Lahcen Haddad, former Minister of Tourism, present member of the Moroccan Home of Representatives and member of the Financial Committee of the Moroccan Parliament

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