Morocco's air company takes urgent measures to face international crisis
Morocco, Business, 10/5/2001

The Moroccan government took on Thursday a package of urgent measures to make up for losses of 1.1 billion Dirhams (around US$ 100 million) expected to be posted in 2002 by the national air company "Royal Air Maroc" (RAM), as a result of the international civil aviation crisis subsequent to the September 11 attacks on the US.

The government decided at its weekly meeting Thursday to raise tariffs, which will reduce losses to 750 million DH (US$ 68 million). Other measures include delaying by a year the delivery of two ordered Boeing 737 till 2003 and freezing recruitment.

RAM, which has 32 aircraft, all of them Boeings will also delay by one year the general Boeing and Airbus Purchase program under which it ordered 22 medium-haul and long-haul Boeing jetliners and four Airbus to be delivered over the 2002-2013 period.

More measures are needed for the company to carry on its activities and the government will take the needed steps the soonest.

RAM's insurance costs have almost quadrupled from 28 million dirhams to 120 million dirhams since Sept. 11. The airline's number of passengers have fallen 22 percent since the day of the attacks, a statement by the Moroccan ministry of culture and communication said, adding that "winter bookings seem to be frozen."

"The financial status of the firm would make it impossible for the company to honor its commitments for the reimbursement of its debts estimated at some 950 million dirhams as well as running costs," the statement said.

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