Regulator set to approve BAA break up.

Brings good news then!

Cheaper flights from both Southampton and Gatwick 😮

The issue is managerial span. >60Mn. pax pa at LHR commands my attention, the odd couple of million in native outposts does not. But odd Peels like the challenge of scrubland. F will wait for approaches and drive the best deal they think the peel may stretch to. Govt. has little remit, because the monopoly, restraint of trade point is less, even in the Scottish clutch (low volume, so low political clout; Prestwick, Newcastle). If I were F, I would seek a social-service evangelist to take the subsidy and distraction of the Benbeculas: how can I deal with stroppy Unions, Green and opportunist lawyer objectors to everything I need to do at LHR, while attending to Barra’s tide patterns?

Il62: As we move to the close of the LoCo era. No. It is full fare (=rip off) legacy that is expiring. Unions will take shutdown in preference to downsizing, so high cost carriers must either fold, or move to pile em high, sell em cheap to get the bums-on-seats down the cattle end to service their high fixed costs.

Ferrovial won in 2006 because they chose to take their chances on disposal yield. Every potential bidder for LHR (which is what was on auction, packaged with otherwise unmovable dross) knew much of the makeweight in the Lot would have to be unloaded, either at Regulator impost or to make room in Buyer’s capital capacity for the upgrades (3rd. runway, renewal of the ghastly Central area) that Govt. wanted not to fund: Shopping Malls (aka Airports) are not what taxation should build. Other infrastructure-loving investors found it too hard to guess what all those Aberdeens would fetch. Ferrovial chose to presume they could unload them, after some improvement expense, at numbers that would give them LHR free. The suggested (?by Ferrovial) £2Bn. for LGW, extrapolated pro-rata to every boondock Eastleigh, would quote them happy.

So… what would you suggest Ferrovial should sell, and also will be advised to sell ? Clearly LHR is the crown jewel and LGW the obvious casualty in a London split, but what about the GLA/EDI/ABZ equation…?

Il62: As we move to the close of the LoCo era. No. It is full fare (=rip off) legacy that is expiring.

Lets wait and see……….

Il62: As we move to the close of the LoCo era. No. It is full fare (=rip off) legacy that is expiring. Unions will take shutdown in preference to downsizing, so high cost carriers must either fold, or move to pile em high, sell em cheap to get the bums-on-seats down the cattle end to service their high fixed costs.

Ferrovial won in 2006 because they chose to take their chances on disposal yield. Every potential bidder for LHR (which is what was on auction, packaged with otherwise unmovable dross) knew much of the makeweight in the Lot would have to be unloaded, either at Regulator impost or to make room in Buyer’s capital capacity for the upgrades (3rd. runway, renewal of the ghastly Central area) that Govt. wanted not to fund: Shopping Malls (aka Airports) are not what taxation should build. Other infrastructure-loving investors found it too hard to guess what all those Aberdeens would fetch. Ferrovial chose to presume they could unload them, after some improvement expense, at numbers that would give them LHR free. The suggested (?by Ferrovial) £2Bn. for LGW, extrapolated pro-rata to every boondock Eastleigh, would quote them happy.

Any clues on who the new owners of Gatwick (and Glasgow) will be?

Specualtion is rife, but all I can find out is that “the usual suspects are monitoring the situation”…

Make of that what you will.

That’s a bit of a shame IMO, GLA has had the investment to draw in large medium/long haul carriers such as EK. Perhaps if EDI was sold off, the new owners would invest into attracting similar services.

That’s just wishful thinking though. Couldn’t see BAA/Ferrovial letting EDI go and I’m not sure if flights to EDI as well as GLA by someone like EK would be sustainable….

Any clues on who the new owners of Gatwick (and Glasgow) will be?

Reports in today’s Glasgow Evening Times would suggest GLA is going to be sold soon…

http://www.eveningtimes.co.uk/news/display.var.2424109.0.0.php

To be honest, without FR and U2, STN would not have seen the success that it has!

That could be debatable. Many legacy carriers such as SAS, Lufthansa and KLM were never really happy sharing the STN field with the likes of Ryanair et all, and this may have robbed STN of other prestige carriers that although looked likely to come never did. I was told by a Lufthansa staff member just prior to that carriers closure at STN that it was the image of STN as a LoCo airport along with a lack of long haul full service connections that played a large part in that carriers decision to leave, one wonders how many other ‘leavers’ were influenced by the same thoughts. As we move to the close of the LoCo era the future looks very uncertain for some of that ilk.

Be good if some of the airlines that have large aircraft that were at LGW in the dim and distant past would return–why oh why use LHR?
Air Canada,Cathay,Air Seychelles all were here in the 90’s would be lovely if they returned
BAA have made a poor job of running LGW–sure someone can do better!:)

Or as heard today on Radio 4……”Ryanair looking to buy Stansted” God ‘elp us!

We’ve gone through the revolution of Low Cost Carriers, now welcome to the revolution of Low Cost Airports, were everything you sit on is well you get charged for sitting on it:diablo:

IN all honstey i hope FR dosnt get there hands on STN, what a lovley airport they are going to spoil if they do.

As someone said earlier i think that the Manchester Airport group should buy one or two of BAA maybe, gatwick and Aberdeen or something along those lines.

I’ve often thought it would be Gatwick for the chop, and I can’t see BAA being bothered about losing it long term.
Stanstead could be a new version of Heathrow for BAA if they get the planning permissions. Better roads, less congested airspace? Also going to be better rail links with crossrail. Likely a better long term bet than Gatwick.
My best guess for the future is that BA will pull out of Gatwick when T5C opens. Easyjet will get Gatwick North to themselves plus one or two others, much the same as BA have at the moment. Room and slots then available for some more start up airlines at Gatwick.
No one really losing out long term. More just a case of shuffling things around to get the best fit.

Manchester Airport Group to buy Gatwick, close it and transfer the flights up to Manchester…Yippeeee!!!!!

If only!!!!!:dev2:

Or as heard today on Radio 4……”Ryanair looking to buy Stansted” God ‘elp us!

Good news for Gatwick and Glasgow then :diablo:

Sh#t! PLEASE BAA, sell Aberdeen…PLEASE!!! 😀 You’re as much use as a choccie teapot!!