Royal Air Maroc CEO Discusses Ticket Pricing and State Aid Amid Pandemic Recovery

According to the CEO of the company, Abdelhamid Addou, the shareholder state has decided to accompany them to manage this unprecedented crisis that has significantly disrupted the financial balance. Continuing his explanations, he also recalled that the company’s performance before COVID was very good, with a growth of nearly 15% compared to the same period a year earlier (November-February). "All indicators were in the green, our membership in OneWorld effective. So we were not in difficulty, on the contrary, and that for 5 good years of positive and growing results. And here too, no need for "expertise", he specifies, affirming that RAM’s performance speaks for itself.

As for the support plan, in the process of being finalized with the State, it includes several aspects, in particular guaranteed debt by the State (CCG) in return for a deep restructuring in view of the inevitable drop in demand and activity, over the next 3 to 4 years. "We will not be able to maintain the same levels of CAPEX (investment expenses, editor’s note) and OPEX (operating expenses, editor’s note) for 3 years, with an activity reduced by at least 30%. We are in the same obvious logic as most airlines worldwide," he assures.

For the CEO, RAM will remain one of the main carriers of tourists. According to him, this sector will de facto suffer a major contraction in global demand. "But we will be mobilized alongside the supervisory ministry and operators. We are always willing to offer a dedicated and custom-made tool to carry out the necessary routes for the tourism recovery," he promised.

Regarding competition, he believes to have started its activities late after the competing companies that have sharpened their weapons early. "We will have to show more agility and creativity, in order to regain market share very quickly and at a lower cost. The digitization started since 2016 will have to be greatly accelerated, with a complete overhaul of our marketing and management methods," he specifies.

As for the controversy over prices, the CEO of RAM points out that it should never have existed, the prices having been capped. "Some have amused themselves by publishing screenshots showing a price offer from the RAM website, as if it were for a single passenger when it is in fact for several travelers under the same booking file, or even tariff offers in business presented as if they were economy seats," he despairs. Abdelhamid Addou also recalled that the prices during this special operation have been frozen, in particular a single fare per destination, until the end of the special operation and the state of health emergency.

He also did not overlook the complaint of other foreign companies about the exceptional operation of opening the Moroccan borders during which the transport of the passengers concerned was entrusted exclusively to RAM and Air Arabia. "In my opinion, this is in no way an opening of the borders, but a special repatriation operation. It is also being carried out successfully, with Moroccans stranded (or residing) in the world having reacted en masse to organize their return home. Even the conditions deemed constraining at the start, such as the obligation to be tested within a short time, have been effectively managed by each passenger," he confides.