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AnonymousGuest17 Apr 2016
I think that the story is here rather than RAM is joining the IAG group.17 Apr 2016
It already has been announced. Joining Avios, not IAG though.17 Apr 2016
Does this mean Avios earning with RAM as well, transferable into BAEC?
SimonS1 +1 – IAG is not a membership organisation so not sure how an airline can ‘join’ as a member unless bought by IAG. No suggestion of that, is there?17 Apr 2016
I hear RAM years ago had quality – but they fail on a number of levels now. But about a year ago there was a rumour they would join Skyteam, but I guess that will not happen now.
But if IAG/Oneworld think that RAM is the answer to not having any decent presence in Africa, then I do not think this would be an attractive alternative..17 Apr 2016
The sale of the Avios platform to other carriers outside of the IAG group is simply a strategy to further commoditise frequent flyer mileage. I think we know, and it’s quite apparent, that earning and the use of Avios is not the main draw card of BAEC. Since every man and his dog is able to earn Avios, even when they’ve not flown, why not extend the Avios currency regime to 3rd party airlines? This will be a nice revenue earner and will not impact the true loyalty arrangement, which is measured via TP count.18 Apr 2016
With RAM being taken over by IAG I wonder which other airlines are part of the plan.
Will change OW membership.
Thank you CXD for the tip off it might be worth looking at shares pre take over.18 Apr 2016
Personally I would be surprised if it really does mean they are being bought by IAG as opposed to Avios. Not least because IAG are supposed to announce such things to the stock exchange to avoid speculative trading which is what could happen here.
Plus I wonder if IAG could integrate two airlines at once.
Having said that RAM was looking for a partner with discussions apparently taking place with Qatar at the end of 2015.18 Apr 2016
SS1 12.48 pm
Many thanks for the update, does this mean that if I get shares on the basis of CXDs insider knowledge and the endorsement of fdos, I could be ‘done’ for insider trading?
Henry18 Apr 2016
Canucklad, if I understand your question properly regarding insider trading:-
If IAG are buying RAM then arguably all shareholders should have been informed at the same time. As the company is listed in London and Madrid those rules apply even if the company they are buying is outside the EU (although I don’t think it is EU legislation). A defence could be that RAM (given its size) is not a significant change to the groups assets and or liabilities.
Given this news, I would neither be a buyer or seller but will continue to hold my current stock.
Personally I am not convinced RAM is a good fit in to the IAG stable, it is culturally very different. I would be very surprised if it were to be so. In addition it would seem pretty inept. To welcome RAM in to Avios makes sense for IAG and RAM, but why release that news in the way they did if very shortly RAM would have been welcomed in to the full IAG stable. RAM would then have become a natural part of AVIOS as did Iberia, Aer Lingus. It just does not add up to me.18 Apr 2016