Ryanair opens two new bases in Morocco, 6 months after charges dispute; and RAM looks for a partner

Europe's largest low-cost carrier Ryanair will establish two bases in North African tourism hotspot Morocco in Apr-2013, just six months after the Irish-based carrier's decision to cut 34 frequencies, including several routes entirely, in protest at rising costs at the country's airports.

But in a major turnaround Ryanair will base two aircraft at Marrakech and another at Fes while also adding two new Moroccan airports at Essaouira and Rabat as it looks to grows its Morocco operations to 60 routes and eight airports, delivering up to 2.5 million passengers a year to the country.

The decision is in stark contrast to situation in Jun-2012 when Ryanair announced it would cancel 34 weekly flights, about 14% of its capacity, to and from Morocco, claiming ONDA, the state owned airports authority had "reneged on its agreement with the airline by imposing a new monopoly handling company on Ryanair which would have resulted in a massive increase in charges for the airline".

The decision by Ryanair first to reduce capacity and now reinstate it offers a significant boost for Morocco's struggling economy, heavily reliant on European tourism. But it will also put further pressure on state-owned Royal Air Maroc (RAM).