Royal Air Maroc Faces Management Crisis Amid Pandemic Struggles

The national company had been in difficulty during the past financial year; and in the end, it was far from its forecasts. The RAM management, to catch up, after a rather poor result that was strongly felt in the figures, had proposed, in early March, "stop formulas" to its staff, inviting them to "contribute to the effort undertaken by the company to get through this crisis period", indicates Hespress.

For UMT-RAM, "the crisis the company was going through has certainly been accentuated by the coronavirus pandemic, but it is also the result of many acts of mismanagement and not performance indicators of the activity."

Among these dysfunctions, it recalled the frequent use of external service providers for services that could be carried out by internal resources, and therefore less costly for the company, the exorbitant monthly remuneration of services provided by people who have benefited from a negotiated departure, the inadequacy of the company’s performance ratios (debt level, charges, working capital reserves and profitability) compared to the industry average".

It also expressed its surprise at RAM’s financial situation. "How is it that one of the pillars of the national economy has been weakened in such a short time? How has a renowned company like RAM come to have difficulty honoring its commitments to its employees at the beginning of the crisis? Why haven’t we held a company committee meeting to assess the company’s financial situation, define the stakes of this situation and establish a short and medium-term crisis exit plan?".