Avionics09
Topic Author
Posts: 135
Joined: Wed Jan 01, 2014 6:08 pm

RAM To Become Avios Partner - One World Prospect

Fri Apr 22, 2016 11:48 am

Royal Air Maroc and IAG have signed a MoU to implement Avios as the airline’s loyalty currency.
p9 on the Avios Investor seminar sheet (see link) reveals some interesting info:

> IAG holds a 4% market share of the international African market
> Avios in partnership with Royal Air Maroc will increase this to 14%, surpassing that of Air France-KLM
> Our biggest airline (BA) offers 10 African cities
> The IAG airline number of cities served in Africa is 20
> Now incorporating our airline partners brings the number of Avios cities to 46
> Avios customer base in Africa stands at over 350k, from a base of 100k

This is a huge boost to the Avios program and at the same time will open up RAM to a wide range of FF travellers.

This confirms once again that RAM & One World could prove to be most compatible, which will be most beneficial for both parties when compared to the remaining 2x alliances *A (already plenty of carriers in Africa) & Skyteam (AFKLM would oppose any strong African carrier as it would pose to much of a threat; AF & AT serve a lot of the same destinations and they would overlap. This could turn out to be the answer One World has been waiting for giving that they have a very weak African coverage compared to *A and Skyteam, especially now that IB has announced to suspend service to Accra & Lagos.



Some indications so far that confirm RAM's preference towards the One World alliance:

- RAM & IB have already been for some time code share partners for Morocco - Spain traffic.
- IB Avios miles can already be redeemed on RAM flights, the same goes for Safar Flyer miles (RAM FFP) on IB flights.
- RAM & QR have a JV in place for Morocco-Qatar traffic as well as linking Africa-Asia.
- The latest signing to become Avios partner.
Rumors so far of QR wanting to purchase a stake in RAM (not holding my breath for this one to be honest.)

http://i63.tinypic.com/36br7.jpg


http://loyaltylobby.com/2016/04/11/r...latform-as-their-loyalty-currency/
http://phx.corporate-ir.net/External...VHlwZT0z&t=1&cb=635959587461578780
http://www.qatarairways.com/ae/en/offers/air-maroc-partnership.page

[Edited 2016-04-22 04:52:09]

[Edited 2016-04-22 04:54:40]
 
mwhcvt
Posts: 932
Joined: Sun Oct 05, 2008 2:01 pm

RE: RAM To Become Avios Partner - One World Prospect

Fri Apr 22, 2016 12:47 pm

Could RAM be a potential future target for takeover by IAG? Are there any potential legal barriers to foreign ownership of RAM?
Must think up a new one soon, slow moving brain trying to get into gear ;)
 
jumpjets
Posts: 1401
Joined: Tue Apr 10, 2012 2:17 pm

RE: RAM To Become Avios Partner - One World Prospect

Fri Apr 22, 2016 4:19 pm

Quoting mwhcvt (Reply 1):
Are there any potential legal barriers to foreign ownership of RAM?

I suppose the fact that RAM is wholly owned by the Moroccan state would be something of a barrier as there would be no obvious mechanism for trying to make a takeover bid. - unless perhaps WW can ring the King of Morocco and make him an offer.  Smile

[Edited 2016-04-22 09:20:56]
 
mwhcvt
Posts: 932
Joined: Sun Oct 05, 2008 2:01 pm

RE: RAM To Become Avios Partner - One World Prospect

Fri Apr 22, 2016 5:52 pm

Quoting jumpjets (Reply 2):

Many airlines that are now publicly traded companies have started as state owned or have been in their lives either part or wholly state owned so that might not be the barrier you think it is...guess it depends on if and when the state needs or wants to generate some cash...
Must think up a new one soon, slow moving brain trying to get into gear ;)
 
IBA346
Posts: 40
Joined: Fri Jan 22, 2010 10:04 pm

RE: RAM To Become Avios Partner - One World Prospect

Fri Apr 22, 2016 7:01 pm

Worth noting that Iberia holds a 0.95% stake in RAM. Very small, and I think Iberia have held it for some time, but might be another indication where RAM's partner preferences may be.
 
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DolphinAir747
Posts: 1871
Joined: Tue Jun 12, 2012 10:07 pm

RE: RAM To Become Avios Partner - One World Prospect

Fri Apr 22, 2016 7:03 pm

So IB but not BA Avios can be redeemed on AT so far?
 
TYCOON
Posts: 474
Joined: Sun Feb 18, 2007 8:20 pm

RE: RAM To Become Avios Partner - One World Prospect

Sat Apr 23, 2016 7:48 am

Rather disingenuous on the part of IAG (but that doesn't shock me coming from this group)

From their presentation:

> Avios in partnership with Royal Air Maroc will increase this to 14%, surpassing that of Air France-KLM

If they want to compare apples to apples, they should add Kenya Airways to the AFKL numbers, even though KQ, unlike RAM to Avios/OW, is a full member of Skyteam and an integrated member of Flying Blue as KQ uses this programme as their own! But of course IAG conveniently chose to ignore KQ in the comparison because it would demonstrate that Avios/IAG is nowhere in Africa compared to AFKL/Skyteam or Star
 
goldcrest
Posts: 119
Joined: Wed Oct 06, 2004 11:54 pm

RE: RAM To Become Avios Partner - One World Prospect

Sat Apr 23, 2016 5:04 pm

I believe a similar proposition is currently with Corsair....
 
Lofty
Posts: 639
Joined: Sun Mar 16, 2008 5:23 pm

RE: RAM To Become Avios Partner - One World Prospect

Sat Apr 23, 2016 7:34 pm

Don't forget that Flybe have Avios I don't see them wanting to join OW.
 
SCQ83
Posts: 5061
Joined: Wed Oct 03, 2012 8:32 pm

RE: RAM To Become Avios Partner - One World Prospect

Sat Apr 23, 2016 7:56 pm

It will be interesting how this collaboration develops.

Also many people forget that Spain has a very large Moroccan community (about 800k, second only to Romanians), so there is a lot VFR. And since most Moroccans in Spain migrated during the last 15 years, they have strong links with their homeland.

I have the impression that IAG is not really targeting a lot this traffic (other than BCN), and Ryanair takes most of it. IMO it would be interesting some kind of collaboration between Vueling and RAM for this traffic, specially if CMN becomes a Oneworld hub. With RAM in OW, routes like CMN-ALC or CMN-BIO could be feasible (even if flown by VY feeding RAM flights).

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