A business in search of take-off in Morocco

Little known to the general public, air leasing, otherwise known as “commercial freight”, continues to develop throughout the world, given that the fleet of airline companies continues to increase, so much the demand for air transport is increasing. The world fleet, it should be remembered, has more than 30,000 aircraft, nearly half of which are leased.

The concept of this business is simple, it consists of renting planes to airlines that find it more profitable to rent an aircraft for a given period rather than buying it and having to bear significant depreciation and depreciation charges. This is where air leasing operators come in. Their role is to meet the needs of airlines worldwide by supplying them with aircraft intended for the transport of mail or passengers. This sector is all the more dynamic as the development prospects are promising. Over the next ten years, the world’s civil aircraft fleet is expected to multiply, pushing leasing operators to rub their hands in search of new opportunities.

Promote the Morocco Label

In Morocco, this “new business”, which has existed for a long time, is in an embryonic phase. There is only one Moroccan operator in this sector. This is “ABL Aviation”, headed by Ali Ben Lmadani, which is among the top 45 worldwide and which is established in the Kingdom via a support office, located in Casablanca, knowing that it has other offices in Hong Kong, Tokyo, etc…

“We have an Office in Morocco with very intelligent and highly qualified engineers and managers, we are proud of it”, welcomes Mr. Ben Lmadani, during a press briefing held on Monday on the sidelines of the ISTAT EMEA Forum which took place place from September 18 to 20, in Marrakech. This is the first event of its kind to be organized in Morocco.

This edition, let us remember, was organized in Marrakech thanks to a long lobbying effort. It took almost four years to persuade the operators to meet in the Ocher City. This year, the forum brought together the world’s largest players in commercial aviation. Nearly 1500 participants took part. The objective is to take stock of the evolution of the sector and shed light on its prospects for development. Also, allowing operators of different nationalities to meet is important.

In addition to meetings and the sharing of experiences, this is an opportunity to address sensitive issues, such as investment, security, trade optimization and sustainability. “This event represents both a showcase for international and national airlines, and a powerful platform for the promotion of commercial aviation in Europe, the Middle East and Africa”, explain the organizers of the event.

Still work to do!

Beyond these objectives, the major challenge for ABL, sponsor of the event, is to promote the Moroccan label, as a promising market with the various global players. However, it is clear that there is still a long way to go in promoting this sector. Several difficulties persist in unleashing the potential of the Kingdom.

First, the air transport market which is not as important for rental companies since the potential customers within Morocco are not numerous. Just realize that there is no collaboration between “ABL” and Royale Air Maroc. (See Three questions) Secondly, even the fact of settling more importantly in the Kingdom is a difficult decision for an operator such as “ABL”, which although directed by a Moroccan endowed with the love of the country, this is not enough to cause it to move its headquarters which is currently in Dublin, Ireland. An obvious choice given the very incentive tax system of Ireland. Therefore, taxation is an essential criterion for an operator.

In the eyes of Ben Lmadani, if Morocco offered a more encouraging regime, that would be good news. “If there is a non-double taxation regime between Morocco and Ireland, and if Morocco lowers the level of taxation, it will certainly have great potential in terms of attractiveness,” he said. pleaded. Ultimately, Morocco is in a position to carve out a place for itself in this sector and thus become a leader, if only at the regional level. “Yes, there is potential”, opines the boss of ABL in response to a question from “L’Opinion”, suggesting that Morocco only has to draw inspiration from the “success stories” in Africa.

Mr. Ben Lmadani cites the example of Ethiopia, including Ethiopian Airlines, which has succeeded in becoming “an African leader” with a consistent and quality fleet. In addition, the more large-scale airlines there are with a large fleet and a substantial flow, the more the rental sector develops as a corollary.

Moreover, who says promoting Morocco’s image, says strengthening its ability to attract companies with African ambitions. That is to say those who want to make the Kingdom a deployment platform on the continental market. However, the market remains rigid as the cost of leasing remains very high, which therefore affects competitiveness.

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