Royal Air Maroc CEO Unveils Rescue Plan Amid Severe Revenue Losses

"The company is in a bad way. I would like to share with you, with complete transparency, the situation of our company and our daily struggle to preserve our fundamentals and our brand." This is the precise introduction with which the CEO presented, in a letter addressed to his employees, the alarming situation the company is going through. With its entire fleet grounded, RAM’s traffic has fallen by 60% in March and 100% in April, compared to the same period last year, representing a loss of 50 million dirhams in revenue per day.

While the company was able to honor its commitments from March to May, thanks to the austerity plan deployed in March, it wants to meet the same challenge in June. To this end, the CEO proposes: "June will nevertheless require a significant cash flow contribution. Like many airlines, we will be able to raise debt guaranteed by the State to meet the commitments of June," the CEO said. This proposal is likely to worsen RAM’s debt, which is among the most indebted public institutions. But in the current context, it has no other alternative.

Aware of the assets of his company, the CEO has called on his employees not to give up and to show discernment and selflessness to prioritize the common interest, while preserving jobs, over short-term considerations. He also announced an unprecedented austerity policy that the company will have to apply. "This is the only way that will allow us to get through this difficult ordeal with the least possible damage," he said.

Furthermore, the CEO stated that discussions have been underway with the State since the beginning of the crisis to put in place a crisis exit plan. "We are working closely with several members of the government to prepare a draft recovery plan capable of guaranteeing the long-term sustainability of our company," he added. The future therefore promises to be tumultuous for the national company, which will have to count on the State to keep its head above water, he acknowledged.