Strategic Alliances

Topics: Royal Air Maroc, Flag carrier, Star Alliance Pages: 5 (1441 words) Published: January 31, 2013
strategic alliances

Royal Air Morocco is the main national airline of Morocco and the country's largest. Based in Casablanca, it serves more than 90 destinations in Morocco, Europe, Africa, the Middle East and North America. It is based in Mohamed V airport in Casablanca. With a turnover exceeding the one billion euros, a fleet of 75 aircraft and a workforce of 3,875 people, the Royal Air Morocco was ranked third best African company behind the South African Airways and the Ethiopian Airlines by the U.S. magazine Global Travelers. It was founded in 1957. Its original name-Atlas Air Morocco, came from the merger of two Moroccan companies that were named Air Morocco and Atlas Air. At that time, the capital of the company is owned mostly by the Moroccan Government. In 1957, the company took its final name of Royal Air Morocco and begins to operate international flights. The advent of the jet engine in 1960 encouraged the company to adapt and to bring its first caravel. At the end of the next decade, Royal Air Morocco already has links with West Africa, the Middle East and North America. In 1982, Royal Air Morocco adheres to the International Air Transport Association (IATA). With the expansion of the airport of Casablanca-Mohammed V, Royal Air Morocco continues to grow. In 2004, she launched her low-cost subsidiary Atlas Blue. The Royal Air of Morocco owns also a holding of 51% in air senegal international ,plus an undetermined stake in Air Gabon International. Some other subsidiaries of The Group:

* Royal Air Maroc
* Royal Air Maroc Express
* RAM Cargo
* Atlas Aérotechnic Industries
* Atlas Hospitality (Hotels)
* Atlas Catering Airlines Services
* RAM Academy

In 2005, the company signed the "Open Sky" agreement, which allows the liberalization of airspace between Morocco and Europe, but places the company in a highly competitive environment. Therefore ,Royal air of Morocco understands that strategic alliances can be the fastest , the least expensive way to achieve business objectives rather than an internal development of the company. But What is A Strategic Alliance ?

A strategic alliance is a cooperation between competitors or potential competitors: they choose to carry out a project or activity by coordinating competencies, capabilities and resources rather than make war on a market that is more demanding which could lead to separations and acquisitions activities.

In the airline industry :
The concept of airline alliances has 15 years today. The pioneer, “ Star Alliance “ includes 25 airlines including Lufthansa, United, U.S. Airways, Singapore Airlines .... It was followed in 1999 by Oneworld, created by British Airways and American Airlines. Skyteam then launched in 2000 by Air France and Delta. In a few years, these groups have become commercial key players in the airline industry. To the point of structuring the organization. Today, more than fifty carriers, including all majors (except those in the Gulf), belong to one of these three alliances. Result, according to figures from the 2010 International Association of Air Transport (IATA), they represent nearly 70% of world traffic: 30.7% for the Star Alliance, 19.8% for Skyteam and 17.7% Oneworld. In The airline industry alliances are cooperative agreements between airlines companies. For essentially economic reasons, an airline operates from a single base, or a very limited number of bases. It gathers in this place its administrative activities and especially the maintenance of its aircraft. The provision of services in the stopovers generally costs him much more than on its base, especially in underserved stopovers. Airlines run frequently bilateral agreements with a local company to subcontract or exchange services: registration of passengers, luggage handling, servicing aircraft. The next step is to offer codeshare flights: one of the companies operating the flight is identified with the...
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