The recovery plan entails the liquidation of 20 planes, a voluntary redundancy plan for people with more than 15 years of seniority, and the layoff of 30% of cabin crew and pilots.
Rabat – Morocco’s national airline Royal Air Maroc (RAM) is preparing for a massive layoff plan, a reduction in the fleet, and the shutdown of certain agencies as part of its recovery plan to mitigate the impact of the three-month-long suspension of air traffic.
The strategy became official following a meeting on Thursday, July 2, between the upper management of RAM, staff representatives, and the representatives of the National Air Transport Federation (FNTA).
The Chief Executive Officer (CEO) of Royal Air Maroc Abdelhamid Addou stated that the layoff plan would affect 858 jobs within RAM or 30% of its global workforce.
Royal Air Maroc has also set up a voluntary redundancy plan for employees aged above 57 years with 15 years of seniority. The conditions and terms of this plan are still under negotiation, pending the approval of the airline’s senior management.
The discharge concerns one-third of the pilots (180 pilots), 30% of the cabin crew (stewards), and approximately 13% of the ground personnel, including baggage handlers.
Royal Air Maroc is also set to proceed to sell 20 planes including 4 Embraers, 4 Dreamliner 787s, and a dozen B737 aircraft.
The RAM fleet currently boasts 59 aircraft including thirty-seven B737s, two B737 Max, grounded since the crash of Ethiopian Airlines in March 2019, one B767 Cargo, nine B787, four Embraer 190 and six ATR 72-212A.
Impact of the crisis on RAM
The Moroccan flag carrier has suffered the worst crisis since its inception in 1957. The company has reportedly experienced $109.1 million in monthly losses since the closure of national borders and the declaration of the emergency state in mid-March.
Now with the drop in global tourism, RAM is predicted to lose 20% of its air traffic in 2020, prompting continued financial losses.
The sustainable resumption of normal air traffic activities is projected for the year 2023 and potentially for 2025, according to the International Air Transport Association (IATA).