LIVERPOOL-3
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I would imagine that Vantage have taken a bath on this. Mind you, their negotiating position against Peel was very weak. With the banks threatening to call in the Liverpool debt (as a result of a covenant breach), Vantage would have been faced with having to put in a large amount of cash. Following the change in strategy of Vantage's investors they no longer have access to such cash. An offer by Peel to take their shares for (presumably) a nominal payment must have seemed the better of two unpalatable alternatives.
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I don't know the precise details of the covenant breach (other than that there was one) but it must have been a serious breach to trigger a requirement to repay the debt.
Less serious covenant breaches tend to result in less onerous penalties, such as a block on dividends until a year or so after the breach is remedied. Only serious breaches result in the lender being able to demand immediate repayment, which is the case here.
Of course most lenders are reluctant to implement a demand for immediate repayment, as this could result in them owning the asset, when they are in no practical position to manage it. Hence the 'standstill agreement' at LPL, where the lender gave the airport company time to sort itself out before calling in the loan. In this case, with Vantage being in no position to put in more money, this appears to have led to Peel taking the shares back from Vantage, who were in no position to put up much of a fight. Now that Peel are sole owners again I would expect them to settle with the banks, given Peel's deep pockets. Probably this will involve Peel repaying at least part of the outstanding loan.
Meanwhile the airport carries on operating quite happily.
Less serious covenant breaches tend to result in less onerous penalties, such as a block on dividends until a year or so after the breach is remedied. Only serious breaches result in the lender being able to demand immediate repayment, which is the case here.
Of course most lenders are reluctant to implement a demand for immediate repayment, as this could result in them owning the asset, when they are in no practical position to manage it. Hence the 'standstill agreement' at LPL, where the lender gave the airport company time to sort itself out before calling in the loan. In this case, with Vantage being in no position to put in more money, this appears to have led to Peel taking the shares back from Vantage, who were in no position to put up much of a fight. Now that Peel are sole owners again I would expect them to settle with the banks, given Peel's deep pockets. Probably this will involve Peel repaying at least part of the outstanding loan.
Meanwhile the airport carries on operating quite happily.
Join Date: Aug 2007
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Currency movement
Movement of the Canadian dollar against sterling over the last 4 years may also suggest that its an opportune time for Vantage to move on. 4 years ago, the rate for the Canadian dollar was circa 1.60 whereas its now 1.85. If for sake of argument they invested £30m in Liverpool (hard to ascertain the value from the consolidated accounts but liabilities did increase significantly in 2010) then to purchase £30m would have cost 48m Can Dollars. If Peel offered say £25m for the shares now then at present exchange rates they would receive 46.25m Can Dollars. In the meantime, they will have been taking dividends. Net loss overall would be allowable against tax. Peel have invested £30m for 4 years and also buy the shares back at a discount. No obvious loser? I think I'm correct in saying that Liverpool made an operating profit of over £5m last year. Going forward, the question is whether that is sufficient ROI for Peel with Liverpool's debt eliminated.
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Interesting analysis from CAPA
Liverpool Airport's struggles to compete with a powerful Manchester neighbour; new airlines needed | CAPA - Centre for Aviation
You do the boats (Liverpool)...and we'll do the Trams, Trains and Planes (Manchester)
Liverpool Airport's struggles to compete with a powerful Manchester neighbour; new airlines needed | CAPA - Centre for Aviation
You do the boats (Liverpool)...and we'll do the Trams, Trains and Planes (Manchester)
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liverpool
More bad news for Liverpool Ryan drop 25weekly departures but add 28 to Manchester.
on another point and another forum the same old school boys are still after all I said, and what is now coming to fruition they still think Liverpool will survive dream on my friends I do hope it willsurvive but it's getting increasingly doubtful.no mater how you look at it
on another point and another forum the same old school boys are still after all I said, and what is now coming to fruition they still think Liverpool will survive dream on my friends I do hope it willsurvive but it's getting increasingly doubtful.no mater how you look at it
Join Date: Aug 2007
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Ryanair
Airadio
What period of time are you referring to? If Winter 2014 then Ryanair departures from Liverpool are 6 per week down on Winter 2013. If Summer 2014 then the transfer of one airframe from Liverpool to Manchester was widely reported a good 6 months ago. Please keep your posts factual, there is no need to resort to calling posters "schoolboys".
What period of time are you referring to? If Winter 2014 then Ryanair departures from Liverpool are 6 per week down on Winter 2013. If Summer 2014 then the transfer of one airframe from Liverpool to Manchester was widely reported a good 6 months ago. Please keep your posts factual, there is no need to resort to calling posters "schoolboys".
the same old school boys
Bagso:
Boats will go on a ship, but ships will not go on a boat What is the difference between a boat and a ship? | Notes and Queries | guardian.co.uk -which is how the Manchester Ship Canal got it's name.
The ability for cruise ships to call at Liverpool was only granted after a hard-won battle against Southampton(!).
BBC News - Southampton objects to Liverpool cruise industry's 'unfair' advantage
As I'm sure you're aware, Liverpool has an underground railway system,
Merseyrail Network Map
which, amongst other things, runs under the River Mersey, so trams are not a lot of use in this case.
eye2eye5:
This is the correct definition of an airframe:
The airframe of an aircraft is its mechanical structure. It is typically considered to include fuselage, wings and undercarriage and and exclude the propulsion system
As for the airports, well really I've never understood the problem. I've worked at both and they have their own pros and cons, and frankly anyone who makes comparisons between the two is comparing apples with oranges.
A little more accuracy all round would perhaps make this thread a better read.
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Each and every airport's page on this forum are for people who are passionate about the airport and wish to discuss its issues in a balanced way.
When comments come off as nothing other than gloating in an airport's problems, then it smells of trolling and does nothing to increase the debate. I have confidence that Liverpool airport will not cease to exist in the near future.
Now, if you wish to go and congratulate Manchester airport in the success of additional Ryanair flights, then go for it on the Manchester pages: I'm sure it will go down well. However, if you do concentrate on Liverpool, at least try to add some considered thought to your posts; and dare I say, use grammar correctly.
When comments come off as nothing other than gloating in an airport's problems, then it smells of trolling and does nothing to increase the debate. I have confidence that Liverpool airport will not cease to exist in the near future.
Now, if you wish to go and congratulate Manchester airport in the success of additional Ryanair flights, then go for it on the Manchester pages: I'm sure it will go down well. However, if you do concentrate on Liverpool, at least try to add some considered thought to your posts; and dare I say, use grammar correctly.
Blue Air to commence 3x weekly service to Bucharest from 15th December.
Blue Air to commence North West?s only scheduled service to Bucharest with direct flights from LJLA - Liverpool John Lennon Airport
Blue Air to commence North West?s only scheduled service to Bucharest with direct flights from LJLA - Liverpool John Lennon Airport
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Let's hope nobody tells Daily Mail readers that there is a new route from Romania to the UK!
I wouldn't be surprised if Wizzair starts in competition to drive them off the route, or even Ryanair at an outside chance. I hope not, as I think diversity is what LPL needs now.
What are the other carriers/routes you think LPL should be targeting at the moment?
- Vueling? I think there is higher chance that they pick MAN, as they do prefer larger airports, but they serve Cardiff and Liverpool has to be a bigger markets than that.
- Aer Lingus/Regional? I know they have tried before and are up against Ryanair, but surely there must be demand for a connecting airline with flights to the US (with immigration pre clearance at Dublin)
- Norwegian? Perhaps an Oslo route would make more sense than their short lived CPH route. If Ryanair can make Rygge work, then surely a better placed airport would be attractive
- Air Transat? AC Rouge? I think a summer service to Toronto would be a decent seller. If BFS can sustain Canada flights, then I believe there may be a market for both LPL and MAN flights.
- WOW Air? Given the large EZY announcement for new regional routes to KEF left LPL out, perhaps WOW could offer the route as a way of getting in on the North West action without going head to head with Icelandair and EZY at MAN
I would love to see a network carrier link LPL to the world, but to be honest, if KLM couldn't make LPL work, I just can't see Air France or Lufthansa starting flights.
Thoughts?
I wouldn't be surprised if Wizzair starts in competition to drive them off the route, or even Ryanair at an outside chance. I hope not, as I think diversity is what LPL needs now.
What are the other carriers/routes you think LPL should be targeting at the moment?
- Vueling? I think there is higher chance that they pick MAN, as they do prefer larger airports, but they serve Cardiff and Liverpool has to be a bigger markets than that.
- Aer Lingus/Regional? I know they have tried before and are up against Ryanair, but surely there must be demand for a connecting airline with flights to the US (with immigration pre clearance at Dublin)
- Norwegian? Perhaps an Oslo route would make more sense than their short lived CPH route. If Ryanair can make Rygge work, then surely a better placed airport would be attractive
- Air Transat? AC Rouge? I think a summer service to Toronto would be a decent seller. If BFS can sustain Canada flights, then I believe there may be a market for both LPL and MAN flights.
- WOW Air? Given the large EZY announcement for new regional routes to KEF left LPL out, perhaps WOW could offer the route as a way of getting in on the North West action without going head to head with Icelandair and EZY at MAN
I would love to see a network carrier link LPL to the world, but to be honest, if KLM couldn't make LPL work, I just can't see Air France or Lufthansa starting flights.
Thoughts?
