[openfly]

Just phoned Computershare and told that the ‘10% discount has been discontinued’.

Nice of IAG to give shareholders warning of the cessation.

I wonder what VK thinks of such shoddy treatment!!

[Binman62]

The following from IAG shareholder web site.

“The 2011 discount numbers have now expired and new numbers have not been issued for 2012. IAG are in the process of evaluating the future of the Scheme as this benefit is only available to former British Airways Shareholders and is not reciprocated for the former Iberia Shareholders or IAG shareholders since the merger.

Shareholders will be kept updated, via this website (www.iagshareholders.com), as soon as a decision has been made, which is expected by the end of January.”

This suggests that no decision has been made, but I would not be surprised to see this enhancement to the sharholder benefits.

[SimonS1]

No doubt a big project team of highly paid “professionals” has been formed to look into it.

[DisgustedofSwieqi]

I know there is debate on here about Willie Walsh, his pros and cons.

I have to say, as a non-shareholder (and thus having no vested interest in the matter), that this episode does give me a strong perception that Walsh has dropped the ball on this one.

He is lucky, so far, that the media have not picked it up as they could do a lovely story about his remuneration increasing whilst loyal shareholders have lost their discount.

[openfly]

Does anyone have Willie Walshes’ email address at IAG? I feel that a barrage of email protests, at our treatment, might, at least, be read by one of his assistants…the message might get through!

Or is there any senior manager left at BA who might listen to our plight…though I doubt it!

[Eastbourneguy]

His PA is Pam Hegarty

<a href="mailto:[email protected]“>[email protected]

Perhaps a few emails might prompt some action?

[pixelmeister]

Um… there seems to be a general misunderstanding here. BA shareholders were granted a discount on tickets for the calendar year 2011. IAG commenced trading on 24/1/11. Iberia prior to the merger did not offer a shareholder discount on tickets. IAG on formation did not offer a discount on tickets. Thus the only people who were fortunate enough to have any discount on BA flights were those who had held shares in BA at the time that BA ceased trading.

There are no shares traded now in BA, all BA shares were exchanged for IAG shares. That means that there are no BA shareholders. So why should one group of IAG shareholders be treated differently to the rest ? Can anyone here cite an instance where this has occurred in any other industry where a merger has taken place on the same lines as the formation of IAG ?

What possible benefit would there be for IAG rolling over the discount to only those shareholders who had previously held BA shares ? Put it another way, let’s pretend that Iberia had a deal for shareholders whereby they all got a free ticket on any IB route. Now, would all those exBA shareholders be happy if IAG only granted a free ticket to exIberia shareholders ? Somehow I doubt it. So should IAG examine the situation and decide whether to provide a discount for all shareholders ? Sounds sensible really – oh, but that is what they have announced anyway.

Finally, as an IAG shareholder I don’t see any ball dropping by the IAG board on this matter, more a case of a group of shareholders not thinking about the commercial reality of the situation. At the end of the day, do folk hold IAG shares because they might get a discount on tickets or because they see the organisation as a good investment prospect ?

[DisgustedofSwieqi]

Pixlemeister

For your argument, the inconvenient truth is that the matter should have been resolved before the end of the concession and in an orderly fashion.

It has been handled appallingly.

I think I will pen and send an email to the Daily Mail, alerting them to the issue.

[SimonS1]

Of course if the benefit ceased with BA PLC it should have been handled better and made clear with some sensible communication rather than just letting it drift on. But then with BA nothing is a surprise.

In any case if I was looking for a “good investment prospect” then I am not sure I would be investing in an airline group.

[lloydah]

With you absolutely SimonS1. The 10% was my only reason for investing, as I expect it was for 90% private investors. As you say, if one is looking for a good investment prospect one would hardly look at an airline group at this period in time. In my opinion it’s bad mannered as well as bad business to treat even small investors in this way.

[Eastbourneguy]

Email from Shareholder services i received today:

We are not currently operating a shareholder discount scheme. The reason for the scheme being withdrawn with effect from 1 January 2012 is that we are currently in the process of reviewing the future of the discount scheme to benefit all IAG shareholders. Following shareholder feedback we are discussing the possibility with British Airways of continuing the scheme for those shareholders who were eligible in 2011 until a decision has been taken. We will advise you of the outcome of those discussions in due course.

Please be assured that shareholders will be updated, via this website (www.iagshareholders.com) as soon as a decision has been made, which is expected at the end of January 2012. We are sorry that we cannot provide you with any further information at this time.

[JamesMalta]

Well with a letter and email to the Daily Mail this will surely have IAG running to their solicitors.

Yikes.

[KeaneJohn]

If shareholders are not happy about the way a company is being run then they could have this addressed at the AGM.

I think its a pretty poor state of affairs for British Airways. It’s not like the 31 December 2011 just arrived unannounced. They have known this for a while.

[DisgustedofSwieqi]

The 2011 IAG AGM took place before the merger completion, so this issue could not be raised there.

The next one will occur “sometime during the first half of 2012.”

So the shareholders have not been able to raise their concerns via this channel.

[pixelmeister]

…and the answer is …

‘Dear Shareholder

Please be advised that you may continue to use the discount code which was issued to you for use during 2011.

No new numbers have been issued for 2012 as IAG is in the process of evaluating the future of the Scheme as this benefit is only available to former British Airways Shareholders and is not reciprocated for the former Iberia shareholders or IAG shareholders since the merger.

Please be assured that shareholders will be updated via the IAG website, http://www.iagshareholders.com, as soon as a decision is reached. In the meantime the discount code previously issued, below, may be used to make bookings until further notice. ‘

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