1. 1 Euromed Aviation Project Amman, October 17-18, 2007 Air transport liberalization in Morocco: successful take-off Younes TAZI Director of Programs & Studies Ministry of Equipment & Transport Kingdom of Morocco

2. Table of content General Context Liberalization process Main achievements Effective changes

3. Table of content General Context Liberalization process Main achievements Effective changes

4. 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

5. General Context  Need for a total change air transport evolution trend: 2003  2010 Passengers in millions : 5,6  15,6 Weekly international flights : 560  1 300 point-to-point flights proportion : 40%  60% (province/hub)  Royal Air Maroc = a competitive actor

6. Weekly international flights Change in trend needed 2004, year of change General Context

7. Table of content General Context Liberalization process Main achievements Effective changes

8. Liberalization process Definition of the new guidelines for air transport policy in Morocco «Controlled liberalization and creation of a concentrated national pole»

9. Five main guidelines : 1. Controlled and transparent liberalization 2. Creating Atlas-blue, a new strong national actor specialized in air transport towards touristic destinations 3. Concentrating Royal Air Maroc on scheduled flights around the Casablanca Hub 4. Non-discriminatory airports incentives for the launching stage of new routes 5. Coordination with Tourism Ministry for the main targeted markets Liberalization process

10. Table of content General Context Liberalization process Main achievements Effective changes

11. 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

12.  December 2006 - Conclusion of the Global Civil Aviation Agreement with the EU Main achievements - liberalization

13.  Agreement with the EU Main achievements - liberalization Air transport markets liberalization Simplifying authorization process Regulatory convergence

14. 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

15. 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

16. 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, …

17. 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)

18. Main achievements – new actors Jet4you, Moroccan/European (Tui group) joint-venture Commercial launch: February 2006 3 aircrafts today 150.000 Pax (2006)

19. Main achievements – airports capacity Capacity of 30 millions pax by 2010

20. Table of content General Context Liberalization process Main achievements Effective changes

21. Effective changes - actors 44 foreign airlines operating to Morocco on scheduled base in 2006 Vs 22 airlines only in 2003 CountryAirlines GermanyCondor, Hapagfly, LTU, Air Berlin GBBritannia, Easyjet, Thomsonfly Belgium SN Brussels Airlines, Jetairfly, Tomas Cook Airlines UAEEttihad Airways Spain Air Europa, Top Fly (Canarias), Binter Canarias (Canarias), Naysa (Canarias) FranceCorsair, Aigle azur IrelandRyanair ItalyNeos, Air One LibyaBuraq Air TurkeyTurkish Airlines

22. 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%

23. Effective changes – air traffic +21%+16%+2,4% -2,3%-1,1% +19% International Air Traffic 2000-2006

24. Effective changes – RAM traffic -5% 9% 16% 14% 9% -2% -8% -2% 14% ATLAS BLUE 20% RAM

25. Effective changes – Success stories Within 3 years for the London – Marrakech route: Air traffic: 78.000  300.000 pax & Capacity: 8  46 fréq/semaine

26. Effective changes – Success stories Air Traffic France-Marrakech: 750.000 pax  1.600.000 pax

27. Effective changes – Fares