Morocco airline RAM to proceed with fleet renewal

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CASABLANCA, March 25 (Reuters) - Moroccan flag carrier Royal Air Maroc (RAM)
said on Monday it would go ahead with an initial $1.4 billion plan to renew
its fleet while adjusting it to developments on the international aviation
market.

In its biggest purchase deal, RAM said last year it had agreed to buy 22
aircraft from its traditional supplier Boeing (BA) and four from Airbus
(EAD) over the 2002-2013 period.

But the industry's crisis in the wake of the September 11 attacks against
the United States raised doubts over the firm's commitment to the plan. RAM
has said it would not cancel the contracts but would reschedule the delivery
of the aircraft.

"We maintain our initial plan aiming at the acquisition of new
aircraft...But we are at the same time adjusting our policy in line with the
evolution of the international aviation environment," RAM Chairman Mohamed
Berrada said.


"We'll continue to modernise our fleet, but with some flexibility in the
timing of acquisition," he added.

Berrada, a former finance minister, spoke to reporters on the sidelines of a
meeting on African aviation attended by dozens of representatives of
African, Asian and Western firms.

He said RAM would receive in the next five days a new Boeing 737 and two
others by the end of the year.

RAM has a fleet of 33 aircraft and serves about 60 destinations in Africa,
America, Europe and the Middle East.

Berrada said the firm was restructuring its activity based on six "growth
poles".

"We eye a strong industrial pole, which will be developped in joint ventures
with foreign firms to develop a local know-how, mainly in the aircraft
maintenance sector," he said.

Berrada was appointed head of RAM last August by King Mohammed with a
mandate to modernise the firm, restructure its ailing finances and boost its
activity.

RAM has already set up a maintenance joint venture with Boeing, bought a
majority stake in Air Senegal International and is seeking to develop
partnerships with African countries, he said.

The government has allocated RAM the equivalent of $91 million over three
years to help the firm replenish its capital and reduce its debt.

RAM is 95-percent owned by the state and carried 3.5 million passengers last
year, serving mainly France, Germany and Britain.


©2002 Reuters Limited.

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