Addou explained that the company has finalized its strategy in collaboration with relevant ministries and airport authorities, according to the Moroccan business news outlet L’Economiste.
The strategy, according to RAM’s chief, will be officially unveiled after slight modifications. Addou explained that the new growth plan is “a development strategy to give a new impetus to the company.” For Addou, an expanded fleet is one of the pillars that would allow RAM “to have several additional aircraft“ to address RAM’s long-haul capabilities along with improving and “enriching the customer service experience.”
To expand its fleet, RAM recently ordered eight aircraft, including four Boeing 787 Dreamliners. The company will receive its Dreamliner aircraft by March 2019. The other four aircraft on order are the 737 Max. The latest generation of the popular 737 aircraft will be received by June 2019.
RAM wants also to “substantially increase the size of the company.” By doubling its fleet and passenger capacity in coming years, it intends to become “a leading airline with the Casablanca hub as the continent’s first gateway.”
To accomplish needed business and regulatory reforms, the company needs to bring “policy levers into play” to support its financial needs, according to RAM’s chairman. He added that this strategy could potentially include an increase in capital investment by the state. Addou believes that “the [current] indebtedness will not affect the company’s financing capacity.”
Addou emphasized that RAM’s financial aggregates are generally positive. “Between the end of 2015 and the end of 2017, RAM earned more than MAD 2.5 billion in revenues.”
“We went from MAD 13 to MAD 15.5 billion of turnover at the end of 2017, he said.“ RAM gained 3 points in filling factor from a 68 percent passenger load rate to 71 percent.
For Addou, Royal Air Maroc is the leading regional flag carrier, owing to the opening of a number of new service routes (Washington, Montreal, Rio, Sao Paulo, Naples, Manchester, Oporto), as well as the revision of programs by reducing stopover times and waiting times at the airlines hub, Casablanca’s Mohammad V International Airport (CMN).
To improve RAM’s customer service experience, the company plans to be the sole carrier utilizing CMN’s Terminal 1 in the coming years, pending approval.