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Royal Air Maroc receives first 787 as the airline finishes restructuring & returns to profitability

Analysis

After two record operating losses in 2010 and 2011, Royal Air Maroc, the government-owned national carrier of Morocco, restructured and posted record operating profits in 2012 and 2013. While the restructuring was difficult, RAM has emerged in a more fit shape. This is more than seeing the silver lining; RAM may be very glad it went through this process. The ratio of staff per aircraft declined from 110:1 to a far leaner 58:1. Passengers carried per employee have increased from 1,054:1 to 2,329:1.

RAM is focusing on international traffic at its Casablanca hub, supplementing it with European services to other Moroccan cities where RAM can compete with LCCs. The domestic market is challenging, and the government has agreed to cover the losses.

Removal of 10 medium-haul aircraft has seen RAM's passenger figures decrease from 6.1 million in 2011 to 5.6 million in 2013. But RAM is now in growth mode, having received in Jan-2015 its first 787 that will complement its recently refurbished 767 fleet. RAM will also take four more E190s and charter aircraft over the peak summer period.

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