Morocco’s Royal Air Maroc (RAM) may seek a state loan guarantee to help cover June expenses as it struggles with $5 million in daily losses caused by the coronavirus pandemic, its chief executive said in a letter seen by Reuters.
The loan would help state-owned RAM maintain cashflow to meet financial commitments, Abdelhamid Addou said in the letter to RAM staff, with Morocco having closed down all flights and imposed a lockdown to help slow the spread of the coronavirus.
RAM staff should brace for further austerity measures after salary and spending cuts that helped it uphold its financial commitments in March, April and May, Addou said.
“This is the worst crisis in our history,” he said after RAM’s traffic plunged by 60% in March and 100% in April.
The company must adapt to new travel requirements and regulations necessitated by the pandemic, he said, adding that it could take three years to return RAM’s flight network to last year’s levels.