Airbus seeks to encroach on Royal Air Maroc's Boeing fleet renewal, sources say

By Tim Hepher and Ahmed Eljechtimi

PARIS/RABAT (Reuters) -Royal Air Maroc is nearing a deal with Boeing for dozens of jets to renew its fleet, though Europe's Airbus is preparing to gain a rare foothold with a smaller order for 20 A220 jets, industry sources said on Wednesday.

Royal Air Maroc has been in talks for over a year to renew its virtually all-Boeing fleet and is expected to stick with its traditional supplier for the bulk of its needs, including 737 MAX and 787 Dreamliner at next week's Paris Airshow, they said.

The sources asked not to be named because the negotiations are not public.

Bloomberg earlier reported the Boeing part of the deal may include about two dozen long-haul 787s and as many as 50 Boeing medium-haul 737s.

While the fleet plan reinforces the carrier's historic ties with Boeing, the sources said, it opens the door to Airbus for the first time in almost 25 years with an order for the A220 - a move that coincides with improved ties between Paris and Rabat.

Airbus, Boeing and Royal Air Maroc declined comment.

Royal Air Maroc CEO Abdelhamid Addou said last year that the airline was in discussions to order new planes as Morocco's flagship carrier, one of Africa's largest, expands to meet growing travel demand.

RAM plans to quadruple its fleet within a decade as Morocco prepares to co-host the 2030 World Cup with Spain and Portugal. Morocco also plans to double airport capacity to 78 million passengers a year.

Morocco is one of Boeing's most important regional markets, buttressed by longstanding deals to support the country's emergence as a rising hub in the aeronautical supply chain.

But French companies are eyeing growing opportunities after President Emmanuel Macron last year recognised a plan for autonomy for the Western Sahara region under Moroccan sovereignty.

A long-running dispute over the territory, dating back to 1975, pits Morocco, which considers Western Sahara its own territory, against the Algeria-backed Polisario Front, which seeks an independent state there.

France, however, also faces pressure over the number of traffic rights granted to its national carrier and any final Airbus deal may also depend on progress there, the sources said.

Royal Air Maroc's only previous direct order for Airbus jets was for four A321s in 2001. Its fleet mainly comprises the Boeing 737 MAX and 787 as well as some smaller Embraers and ATRs.

(Reporting by Tim Hepher and Ahmed Eljechtimi; Editing by Jan Harvey and Joe Bavier)