[updated:LAST EDITED ON 26-08-02 AT 12:36 PM (GMT)]BAA PLC is threatening to shelve terminal 5 at Heathrow airport if it is blocked from raising landing fees.
Mike Hodgkinston, the chief executive of the whole thing warned that the new £2.5 billon terminal- already behind schedule, will not go ahead if the CAA will not allow BAA to raise landing fees, to double the current amount.
He went on to say that if the terminal was not built, it would be a bad blow for British Airways with a possible job loss of 16,000+ staff.
This article was taken from yesterdays Annova news website.
By: mongu - 26th August 2002 at 18:53
RE: Terminal 5 plans maybe shelved.
The total number of aircraft parked and using airbridges is only going to increase a small amount accross LHR. Therefore these fees will not be sufficient to pay for T5. Retail might give some more revenue, but I doubt it would be quite enough.
BAA will be looking for a return of at least 10% on the T5 project – that is, the “risk free” rate of return + 10%. Risk-free is taken to be the return you’d get by spending the cash on T-bills and government bonds.
By: andrewm - 26th August 2002 at 17:59
RE: Terminal 5 plans maybe shelved.
Wouldnt they profit from after the terminal was built and gate fees? Surely the airlines have to pay for air bridge and the space to park the aircraft while on the ground! Isnt the fee for parkign around £1000-2000 and the air bridge is alot extra?
By: mongu - 26th August 2002 at 16:37
RE: Terminal 5 plans maybe shelved.
Why is this argument happening now?
It should have been apparent that the payback for this project would be increased fees and charges. There will be only a small extra number of flights so extra revenue won’t really be generated from extra business, but existing business must pay.
None of the airlines has any cause to complain, nor the CAA. This is a stupid time to raise such an objection! How did they think BAA was going to profit from T5???
By: andrewm - 26th August 2002 at 14:46
RE: Terminal 5 plans maybe shelved.
Erm if BAA raise landing fees who will pay to use terminal apart from BA whos prices already are hgih enough. Would people like Virign go to Gatwick.
I am sure the residents are all in favour of the CAA on this one!
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August 26, 2002 at 12:31 pm