Royal Air Maroc to become an IAG Avios partner

Old Apr 11, 16, 2:03 pm
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Royal Air Maroc to become an IAG Avios partner

IAG has signed a Memorandum of Understanding with Royal Air Maroc, which is expected to become an IAG Avios partner.

Royal Air Maroc has also often been cited as a future Oneworld alliance member.

This news comes from an IAG "teach in" on Avios which also contains some insights of the working of the Avios currency for IAG:

http://phx.corporate-ir.net/External...59587461578780

One stat that stands out is that no less than 101bn Avios were issued in 2015.

Last edited by ian001; Apr 11, 16 at 2:09 pm
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Old Apr 11, 16, 2:14 pm
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Very interesting presentation. Thanks for sharing.

As an aside, what does Royal Air Maroc bring to OneWorld, I wonder? Before QR I could see how they needed better Africa coverage - and maybe they still do - but I still think of RAM as a 3rd class airline.

Let me answer my own question. It is probably QR who pushed for this. I think they like OW a lot more than they say and RAM is their African expansion strategy. Not autonomous.

Last edited by henkybaby; Apr 11, 16 at 2:37 pm
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Old Apr 11, 16, 2:25 pm
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Wonder when that RAM link is likely to start
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Old Apr 11, 16, 2:35 pm
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Thanks for sharing ian001

The section on p9 about how we [IAG] leverage our customer base is very interesting
  • 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
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Old Apr 11, 16, 2:54 pm
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The most notable point for me from a BAEC perspective is this:

Over time the standalone platforms [BAEC, IP Plus] will be migrated to the Avios platform
It's not exactly surprising but had that intention been shared publicly before? It will surely involve some major changes to BAEC earn and spend. The new Aer Club will presumably be a marker for what the shared platform might eventually look like.

ETA: Also thanks to ian001 for sharing. Very interesting paper.

Last edited by Ldnn1; Apr 11, 16 at 3:07 pm
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Old Apr 11, 16, 2:55 pm
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Good stuff, that was well worth a look.

Underlines how, perhaps, they might be on to something leading with the avios currency. Must be hugely interesting for Royal Air Maroc.
I had a few RAM flights in 2014, Casablanca could be a decent hub .... needed a bit of work and investment but was okay to transit.
The potential clientele in West Africa is certainly there, the combo of RAM network reach and the likes of Iberia and Vuelling provide routings ... so yes, very possible this could lead to a tie-up at some point. Avios presumably provide an opening each-way bet.

The slides on the revised accounting for avios hint at the direction of travel (which FTers have previously highlighted).
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Old Apr 11, 16, 2:56 pm
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I should point out that this is just an Avios tie-up at this stage, when Avios is actively looking for more partners - rather than a oneworld link, where things are more complex.
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Old Apr 11, 16, 3:02 pm
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Agree that oneWorld's African presence is poor. AT might be a nice addition...
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Old Apr 11, 16, 3:16 pm
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More exemplary usage of 'complimentary' and 'complimented' on page 18 btw
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Old Apr 11, 16, 3:18 pm
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So Avios does not have a singular. One Avios, two Avios, three Avios, one meeeeelllion Avios.

The lifecycle of Avios seems to show they always go through the Avios bank (when the separate Avios operations of BA, Iberia, etc are integrated into the Avios bank). So the Avios bank has complete control of all Avios as they are either held in a customer account at the bank or an airline account at the bank, they do not circulate to any other holding place. So there will not be several institutions holding Avios, only one central clearing bank for them - which can set whatever rules it wants, even more than is currently the case for Avios.

Page 15-16 of this ECB report discusses FF schemes as virtual currencies of the one-way convertible sort.

Last edited by flatlander; Apr 11, 16 at 3:39 pm
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Old Apr 11, 16, 6:23 pm
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Originally Posted by flatlander View Post
So Avios does not have a singular. One Avios, two Avios, three Avios, one meeeeelllion Avios.
Avios and sheep have something in common then.
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Old Apr 11, 16, 6:57 pm
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Originally Posted by henkybaby View Post
Very interesting presentation. Thanks for sharing.

As an aside, what does Royal Air Maroc bring to OneWorld, I wonder? Before QR I could see how they needed better Africa coverage - and maybe they still do - but I still think of RAM as a 3rd class airline.

Let me answer my own question. It is probably QR who pushed for this. I think they like OW a lot more than they say and RAM is their African expansion strategy. Not autonomous.
How else would you get to Ouagadougou and earn Avios.
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Old Apr 11, 16, 7:14 pm
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Originally Posted by ian001 View Post
IAG has signed a Memorandum of Understanding with Royal Air Maroc, which is expected to become an IAG Avios partner.

Royal Air Maroc has also often been cited as a future Oneworld alliance member.

This news comes from an IAG "teach in" on Avios which also contains some insights of the working of the Avios currency for IAG:

http://phx.corporate-ir.net/External...59587461578780

One stat that stands out is that no less than 101bn Avios were issued in 2015.
Now Iberia and Royal Air Maroc are partners from long time ago
https://www.royalairmaroc.com/es-es/...r-Flyer/IBERIA

http://www.iberia.com/web/webPartner...dPartner=90353



Originally Posted by TPJ View Post
Agree that oneWorld's African presence is poor. AT might be a nice addition...
I can not remember exact, but Iberia has a lot of African destinations.
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Old Apr 12, 16, 2:35 am
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Interesting article here from last year.

RAM have a JV with QR so better able to compete with Emirates. They are (were) also seeking a JV with IB. IB holds a very small stake in RAM (under 1%) and the articles states


RAM's Qatar JV and planned Iberia JV give it relatively deep relations (for a carrier of its size) with oneworld.

This comes as RAM weighs an alliance membership. For RAM to work towards these two oneworld JVs and then join another alliance would be unusual, and Star could be expected to object to a JV with a Gulf carrier (and, further, one in a competing alliance). These two JVs bring RAM closer to the oneworld fold.

CAPA previously examined RAM's African network, which would be the biggest draw for an alliance. There is considerable overlap with Star Alliance, perhaps diluting value to the existing members as well as RAM itself.
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Old Apr 12, 16, 2:38 am
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Originally Posted by PLATINOIB View Post
I can not remember exact, but Iberia has a lot of African destinations.
They don't have that many:

Accra, Algiers, Casablanca, Dakar, Johannesburg–OR Tambo (resumes 1 August 2016), Lagos, Luanda, Malabo, Marrakech

So 9 total, and most overlap with BA. Still, nice to have extra options to earn/burn. I bought a LGW-RAK flight last night. RAM didn't come up as the cheapest for any search, BA were always cheaper. I guess they won't be available as Reward Saver tickets?

(That list is from Wikipedia MAD page)
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