ATW Daily News

RAM repositioning to contend with European competition

Friday June 26, 2009

Royal Air Maroc will pull its own low-cost brand Atlas Blue and launch a regional airline as part of its strategy to fend off competition from no-frills carriers that has increased since the 2006 signing of the open skies agreement between Morocco and the EU.

"We cannot get rid of this competition. We have to face it. We will reinforce our position as a legacy carrier and develop our hub network from Casablanca," RAM President Driss Benhima told ATWOnline at the Paris Air Show (ATWOnline, Dec. 13, 2006).

RAM signed a firm contract for four ATR 72-600s and two 42-600s, plus options for two more 72-600s, at Le Bourget (ATWOnline, June 17). The new turboprops will be operated by Royal Air Maroc Express, the new regional subsidiary set to be launched in the coming weeks and created in cooperation with the Moroccan government.

Since deliveries of the newly ordered ATRs will not start until 2011, RAM is leasing four ATR 72-200s from the manufacturer. "Our new regional carrier will enhance the air connectivity between Moroccan towns and reinforce their appeal to tourists. But there is also a growing domestic demand," Benhima said. "We will operate high frequencies to increase the attractiveness of the offer."

RAM Express will base at Casablanca and connect to RAM's medium- and long-haul networks. The Moroccan flag carrier is adding two 767-300ERs this year and in November 2005 placed an order for five 787s. The Dreamliner delay is "a problem," Benhima said.

Atlas Blue, which commenced operations in July 2004, will remain a point-to-point operator mainly between Marrakech and European cities but it will fly under the RAM brand. It will offer complimentary onboard catering and its 737s will be fitted with business class. "It will be sort of a RAM light," Benhima said.

by Cathy Buyck

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