RPT-UPDATE 1-Morocco to privatise Royal Air Maroc-document
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RABAT, Oct 15 (Reuters) - Morocco plans to privatise flag carrier Royal Air Maroc and two subsidiaries, according to a government document listing eight state companies slated for sale to private investors.
"This legislative measure underlines the continuation of the privatisation process in view of the gradual opening up of the economy via total or part sale to private investors of state firms," according to a document obtained by Reuters.
The document, entitled "Highlights of the draft law authorising the transfer of state enterprises to the private sector", accompanied the government draft budget law for 2009.
The four-page text named the two subsidiaries as Royal Air Maroc units low-cost airline Atlas Blue and leisure firm Atlas Hospitality Morocco.
The other seven companies slated for privatisation are highway company ADM, real estate firm al Omrane, transport and logistics company SNTL, leisure and transport company Supratours, audiovisual company Soread, engineering company LPEE and maritime consulting firm CID, said the statement.
The planned privatisation of the companies could be through a full sell-off, a gradual sale of stakes directly to investors or through the sale of floating shares on the Casablanca bourse, the document said.
"These companies would benefit from their privatisation because the goal of the sell-off is to perpetuate their existence and mid-and-long term development," it added.
"The privatisation of these enterprises would be an opportunity for them to be more free to develop business on equal footing with their competitors in the private sector," according to the text.
Experts said the plan could be the biggest privatisation scheme since the late 1990s when the Moroccan government expanded its privatisation of state assets to include large firms like telecom company Maroc Telecom (IAM.CS).
Maroc Telecom, Morocco's dominant company (IAM.PA), is now controlled by French entertainment group Vivendi (VIV.PA).
Royal Air Maroc, one of the most profitable airlines in North Africa, has plans to beef up its Boeing-dominated fleet to 43 jets.
It expects to invest $2.0 billion to buy 29 new planes for the 2007-2013 period.
The government wants to increase tourist numbers to 10 million by 2010 from 7.4 million last year, and is encouraging the expansion of air transport, including low-cost flights, to spur holidaymaker arrivals.
Morocco signed an Open Skies agreement with the European Union in 2006 to open its air travel business to new airline competitors, including low-budget carriers such as Ryanair (RYA.I) and easyJet (EZJ.L).
The government did not set a timetable for the planned privatisation, according to the text of the document which said the companies set to be sold were in good financial health, as part of a government policy to pick only profitable firms for sale to private investors.
Morocco's main business daily L'Economiste quoted on Wednesday an unnamed government source as saying the government expects the privatisation to be wrapped up "within one year, at the soonest". (Reporting by Lamine Ghanmi; editing by Sue Thomas and Simon Jessop)
