Royal Air Maroc agrees staff cuts to shore up loss making airline

Sources close to the Casablanca airline say attempts are also being made to free up to 30% of the company's stock to a foreign airline through a privatisation deal.

Airlines such as Air France-KLM and Emirates are said to have been involved in discussions.

The latest proposed job cuts come as the airline admits to continuing losses. Some analysts project losses of around $100 million for this financial year. The staff cuts could equate to more than a quarter of the entire workforce.

RAM president and CEO, Driss Benhima, told unions that the redundancies are designed to “turn around and develop the company,” which has been in a “critical situation” since the start of the global downturn. He said that RAM would be selling some of its non-aviation assets to fund the cost of the redundancy settlements.

Cargo specialist media site IFTW reported todat that the rationalisation will also see the re-organisation of RAM’s flight network, with the closure of some unprofitable routes, senior management restructuring, the withdrawal of 10 aircraft and the re-focusing of the airline’s activities around its hub in Casablanca.        
“In an already difficult position since the global economic crisis at the end of 2008, RAM has also felt the negative impact from the dip in Morocco’s tourism, triggered by terrorist attacks in the country and also the “spring revolutions” in the neighbouring states of Tunisia, Libya and Egypt,” IFTW said.   
RAM has just taken delivery of the first ATR 72-600 as part of its fleet renewal. With more than 20 aircraft on order – including six Boeing B787 Dreamliners – the airline has been working to create differentiation between itself and other North African airlines.