Royal Air Maroc deal could take off
Morocco could sell a minority stake in Royal Air Maroc, the national flag carrier, to Gulf airlines
Morocco will offer to sell a 44 percent stake in its flag carrier Royal Air Maroc (RAM) to major Gulf airlines, an official source said on Monday.
The proposal will be made during a rare tour by King Mohammed of Saudi Arabia, Qatar, the United Arab Emirates, Kuwait and Jordan that starts on Tuesday.
“We will listen to their (Gulf airlines) ideas about how they see this partnership, for our part, we may propose the sale of up to 44 percent stake in RAM to the selected partner,” the source told Reuters.
RAM has seen its own financial troubles in recent years, cutting staff and upgrading its aircrafts fleet in a restructuring process aimed to mitigate losses.
In 2011, RAM took $187 million from the state to shore up finances hit by growing competition, lower sales and higher fuel prices. This government capital injection appears to correspond to the 44 percent stake the government may sell, official statistics showed.
RAM operates a fleet of more than 55 aircraft to some 83 destinations in Africa, Europe, Middle East and North America.
- Al Tayer bucks the US department store trend with Bloomingdale's Kuwait opening
- Gulf Islamic banks set to outperform conventional banks for second year: Moody's
- Jordan secures EU finance for socioeconomic and environmental programs
- Same-day service deliveries in GCC an untapped market: Wing CEO
- Will terror attacks damper Arabs' appetite for European holidays?