PPRuNe Forums - View Single Post - SOUTHEND 5
Thread: SOUTHEND 5
View Single Post
Old 11th Jan 2017, 09:17
  #3569 (permalink)  
Andy_S
 
Join Date: Jan 2001
Location: Clarty Waters, UK
Age: 58
Posts: 949
Received 38 Likes on 22 Posts
Originally Posted by davidjohnson6
The model may work elsewhere in certain cases to a limited degree (St Gallen had less than 92,000 passengers in 2015, much smaller than SEN), but it is often a bad idea in business when a company acts to a significant degree as its own customer - all sorts of perverse incentives can arise which makes middle management do quite strange things that are in the interests of their little fiefdom but not in the interests of the company as a whole.
That's my view as well.

I understand why Stobart are doing this, but it's a high risk strategy. It failed when Manston tried it with EUJet and ultimately took down both airline and airport owner Planestation. Granted Planestation were already financially distressed, but if this doesn't work then it will still hurt Stobart, both financially and in terms of credibility.
Andy_S is online now