Royal Air Maroc's Bold Fleet Play: Diversification, Diplomacy, and Dominance in Africa

Investors, fasten your seatbelts! Royal Air Maroc (RAM) is about to execute one of the most ambitious airline expansions in years, and it's a move that could redefine aviation in Africa and Europe. At the Paris Air Show 2025, RAM is set to announce a landmark fleet order with Airbus—a first for the traditionally Boeing-centric carrier—while maintaining its Boeing ties. This isn't just about planes; it's about leveraging geopolitical alliances, tapping into exploding tourism, and positioning RAM as the go-to carrier for the Oneworld alliance. Let's break down the risks, rewards, and why this could be a buy for the bold.

Strategic Diversification: Why Airbus and Boeing?

RAM's current fleet of 52 Boeing-dominated aircraft (including 30 737s and 11 787s) is about to get a major upgrade. The goal? Expand to 200 aircraft by 2037, capitalizing on Morocco's tourism boom (17.4 million visitors in 2024) and its role as a 2030 FIFA World Cup host. The fleet overhaul will include Airbus A220s for short/medium-haul routes and A321neo/XLRs for transatlantic and African routes, while Boeing's 737 MAX and 787 will remain for core operations.

This dual-supplier strategy is genius. The A220, with its fuel efficiency and flexibility, is perfect for Morocco's growing domestic and regional network. Meanwhile, the A321XLR can reach North America nonstop from Casablanca, slashing reliance on codeshares. Boeing's 787-10, with its long-range capability, remains unmatched for routes like Casablanca to Asia.

Geopolitical Winds in Your Favor

RAM's shift to Airbus isn't just about planes—it's about diplomacy. Improved Franco-Moroccan relations have smoothed the path, especially after resolving disputes over airport slots at Orly. Airbus's acquisition of a Casablanca production facility (previously Spirit AeroSystems) ensures local supply chain support, a huge plus for Morocco's economy.

But don't underestimate the U.S. angle. Boeing's 737 MAX and 787 orders will keep RAM tied to the U.S. market, balancing geopolitical risks. If tensions between France and the U.S. flare, RAM has both suppliers in its corner.

Oneworld Alliance: The Secret Weapon

RAM is part of the Oneworld alliance, which includes giants like American Airlines and British Airways. This partnership opens doors to global routes and frequent-flyer programs. With a modernized fleet, RAM can leverage Oneworld's network to dominate African-Europe traffic. The A321XLR and 787-10 will serve as bridges between Africa and North America/Europe, while the A220 nails intra-African routes.

Risks: Overcapacity and Infrastructure Hurdles

The biggest red flag? Overexpansion. Doubling the fleet to 200 by 2037 means absorbing 15 new planes annually—no small feat. Operational costs, pilot training, and maintenance for two aircraft types could strain resources.

Another concern: long-haul fleet overlap. Replacing Boeing's 787s with Airbus's A350s would require retooling infrastructure, and analysts question whether the savings justify the disruption. RAM's 2024 787 order suggests they might stick with Boeing for widebodies, minimizing upheaval.

Investment Thesis: A Growth Play with Legs

RAM's parent company, ONCF (Moroccan National Railways), is likely the best entry point for investors. The airline's expansion aligns with Morocco's “Airports 2030” strategy, which includes new terminals and high-speed rail links. With tourism set to hit 22 million by 2030 and the World Cup driving infrastructure upgrades, RAM is positioned for sustained revenue growth.

For Boeing and Airbus investors, RAM's order is a win-win. Boeing's 737 MAX backlog (currently 2,300+) gets a boost, while Airbus's A220 and A321neo sales gain momentum.

Final Call: Go for Lift-Off (With Caution)

RAM's fleet gamble is high-risk, high-reward. The geopolitical and alliance tailwinds are strong, but execution is key. Buy if you believe in Morocco's tourism trajectory and Africa's aviation potential. Hold if you're wary of overcapacity.

This isn't just about planes—it's about building an aviation powerhouse in Africa. Strap in: RAM is aiming for the skies.