Overview - Atlas Blue

Royal Air Maroc tries its hand with Atlas Blue

Moroccan LCC, Atlas Blue, a fully owned subsidiary of Moroccan flag carrier Royal Air Maroc (RAM), was officially incorporated on 28-May-04. The government-owned flag carrier launched the company in a bid to increase tourism figures to Marrakech – which is Atlas Blue’s key base. It has international regular schedule service between the Moroccan cities of Marrakech and Agadir to a number of European cities.

In the first eight months of operations, Atlas Blue flew a total of approximately 500,000 passengers, according to the airline this growth was spurred on by an e-ticket distribution system.

Atlas Blue currently operates an eight-strong fleet of B737s and one A321, however in mid 2006 Moroccan Prime Minister Driss Jettou, indicated that Atlas Blue plans to place an order for ten Airbus aircraft seeking to “harmonise” its fleet between the Boeing and Airbus.

Atlas Blue’s fleet development policy is quite ambitious, culminating in the acquisition of two aircraft per year. The airline has stated that its fleet will be comprised of 14 aircraft in 2008-2009 and 24 by 2012.

Outlook uncertain for affiliated LCC

The EU implemented an open skies agreement with Morocco in 2006, allowing any EU registered airline to fly to any airport, as often as it wishes, for any price between those countries. This agreement was employed as part of the Moroccan Government's plans to increase tourist numbers to ten million by 2010. easyJet expects to carry around 90,000 passengers on the route within the first 12 months, meaning Atlas Blue will face rising competition from seasoned heavyweight easyJet in coming years.

While it’s beneficial to have the power of the flag carrier and the Moroccan Government behind it, the fact also clouds Atlas Blue's future. RAMs routes to Europe are dominated by tourism and flows from VFR (Visiting Friends/Relatives). If it is able to derive significant cost savings with the Atlas Blue vehicle, then it may be willing to cannibalise its main unit's traffic. If, as is often the case, political realities limit those cost savings, the future viability of Atlas Blue will be questionable.

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