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FINANCIAL NEWS
Morocco mulls selling RAM stake to key Gulf airline
16 Oct 2012
(MENAFN) According to a source in the Moroccan government, the country mulls selling a stake in Royal Air Maroc (RAM) to a key Gulf Arab carrier, reported Arabian Business.
Morocco may propose the sale of up to a 44 percent stake in the national carrier to the chosen partner.
The North African country wants to take advantage of the solid presence of chief Gulf carriers, mainly in China, India and Latin America to expand tourism and bring holidaymakers from around the world.
As tourism contributes with 10 percent of Morocco’s USD93 billion gross domestic product (GDP), and is the country’s second-largest direct employer, the government plans to attract 20 million tourists by the end of the decade, a little over double the current figure.
In 2011, RAM took USD187 million from the government to support finances hit by rising competition, lower sales and higher fuel prices.
It is worth noting that the in order to enhance efficiency, the carrier cut its workforce by 30 percent to nearly 3,900.
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