1

Euromed Aviation ProjectEuromed Aviation ProjectAmman, October 17-18, 2007Amman, October 17-18, 2007

Air transport liberalization in Morocco: Air transport liberalization in Morocco: successful take-offsuccessful take-off

Younes TAZIYounes TAZIDirector of Programs & StudiesDirector of Programs & Studies

Ministry of Equipment & TransportMinistry of Equipment & TransportKingdom of MoroccoKingdom of Morocco

Table of content

General Context

Liberalization process

Main achievements

Effective changes

Table of content

General Context

Liberalization process

Main achievements

Effective changes

General Context

Ambitious targets for tourism development in Morocco ‘‘Vision 2010’’ = a challenge and important development opportunities for air transport

Concerted study conducted by the Ministry of Equipment & Transport to define new guidelines of sector’s policy

General Context

Need for a total change air transport evolution trend:

2003 2010

Passengers in millions : 5,6 15,6Weekly international flights : 560 1 300point-to-point flights proportion : 40% 60%(province/hub)

Royal Air Maroc = a competitive actor

Weekly international flights

350 325 364 393 355 380 409 428 443 468 496 500 511

133 117167 236 264

298361

439531

749635 689

131

0

200

400

600

800

1000

1200

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Non-Hub

Hub

Change in trend needed

2004, year of change

General Context

Table of content

General Context

Liberalization process

Main achievements

Effective changes

Liberalization processLiberalization process

Definition of the new guidelines for air Definition of the new guidelines for air transport policy in Moroccotransport policy in Morocco

«C«Controlled liberalization and creation of a ontrolled liberalization and creation of a concentrated national poleconcentrated national pole»»

Five main guidelines :Five main guidelines : 1. Controlled and transparent liberalization 1. Controlled and transparent liberalization

2. Creating Atlas-blue, a new strong national actor 2. Creating Atlas-blue, a new strong national actor specialized in air transport towards touristic specialized in air transport towards touristic destinationsdestinations

3. Concentrating Royal Air Maroc on scheduled flights 3. Concentrating Royal Air Maroc on scheduled flights around the Casablanca Hub around the Casablanca Hub

4. Non-discriminatory airports incentives for the 4. Non-discriminatory airports incentives for the launching stage of new routeslaunching stage of new routes

5. Coordination with Tourism Ministry for the main 5. Coordination with Tourism Ministry for the main targeted marketstargeted markets

Liberalization processLiberalization process

Table of content

General Context

Liberalization process

Main achievements

Effective changes

1- Referential: a document published on February 2004, that clarifies rules for all actors

2- Handling liberalization at the main airports: CMN, RAK, AGA

3- Reinforcement of the DAC mission of regulation

4- Setting up of committees at main airport for slots allocation

Main achievements - liberalization

December 2006 - Conclusion of the Global Civil Aviation Agreement with the EU

Main achievements - liberalization

Agreement with the EU

Main achievements - liberalization

Air transport markets liberalization

Simplifying authorization process

Regulatory convergence

Main achievements - liberalization

Air transport markets liberalization

Example of 3rd & 4th freedoms

Morocco EU country: ex. Spain

With routes & capacity restrictions

Before

Without restrictions

With Open Sky

Main achievements - liberalization

Air transport markets liberalization

Example of 5th freedom

Morocco EU country 2: ex. France

Before

With Open Sky

EU country 1: ex. Spain

Main achievements - liberalization

Designation no more needed to operate scheduled flights

Simplifying authorization process

Regulatory convergence

Target : to introduce a ‘‘excellence’’ process towards European standards: security, safety, air trafic management, consumer protection, environment protection, …

Main achievements – new actors

Atlas-blue, a fully-owned subsidiary of RAM

Commercial launch: October 2004

Scheduled services between Morocco and Europe Low costs = Low prices Distribution: direct sale model online or via a call center

9 aircrafts today

30% market share in RAK

1 million passengers (2007)

Main achievements – new actors

Jet4you, Moroccan/European (Tui group) joint-venture

Commercial launch: February 2006

3 aircrafts today

150.000 Pax (2006)

Main achievements – airports capacity

Capacity of 30 millions

pax by 2010

Table of content

General Context

Liberalization process

Main achievements

Effective changes

Effective changes - actors

44 foreign airlines operating to Morocco on scheduled base in 2006 Vs 22 airlines only in 2003

Country Airlines

Germany Condor, Hapagfly, LTU, Air Berlin

GB Britannia, Easyjet, Thomsonfly

BelgiumSN Brussels Airlines, Jetairfly, Tomas Cook

Airlines

UAE Ettihad Airways

SpainAir Europa, Top Fly (Canarias), Binter Canarias (Canarias), Naysa (Canarias)

France Corsair, Aigle azur

Ireland Ryanair

Italy Neos, Air One

Libya Buraq Air

Turkey Turkish Airlines

Effective changes – main figures

International Pax

Flights / week

Dedicated aircrafts (Morocco)

Tourists arrivals

Tourism incomes

2003 2006 Var 06/03

5,3 millions

560

40

4,7 millions

2,8 € billions

8,5 millions

850

60

6,6 millions

4,8 € billions

+60%

+52%

+50 %

+40%

+71%

Effective changes – air traffic

Evolution du trafic aérien international (2000-2006)

-

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

7 000 000

8 000 000

9 000 000

2000 2001 2002 2003 2004 2005 2006

Pass

ager

s

+21%+16%+2,4%

-2,3%-1,1%

+19%

International Air Traffic 2000-2006

Effective changes – RAM traffic

0250000500000750000

1000000125000015000001750000200000022500002500000275000030000003250000350000037500004000000425000045000004750000500000052500005500000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

-5%9%

9%

16%

14%

9% -2%

-8% -2%

14%

ATLAS BLUE

20%

20%

RAM

Effective changes – Success stories

Evolution du trafic aérien de la ligne Londres - Marrakech (2003-2006)

0

50000

100000

150000

200000

250000

300000

350000

2003 2004 2005 2006

Pax

Autres

Thomsonfly

Ryanair

Easyjet

British Airways

Atlas-blue

RAM

Within 3 years for the London – Marrakech route:

Air traffic: 78.000 300.000 pax & Capacity: 8 46 fréq/semaine

Effective changes – Success stories

Evolution du trafic aérien France - Marrakech (2003-2006)

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

2003 2004 2005 2006

Autres

Blue Line

Axis Airways

Air Méditerranée

Aigle Azur

Jet4you

Corsair

Air France

Atlas-blue

RAM

Air Traffic France-Marrakech:750.000 pax 1.600.000 pax

Effective changes – Fares