Originally Posted by
Donkey497
However, I tend to agree with the sentiment though - Heathrow & its Spanish master Ferrovial should not expect to keep up- the same rate of return to shareholders whilst laying their shiny new tarmac. That's why its called an investment - it needs time to be repaid.
To try to soak the travelling public or the government to keep up their dividends would be just a bit much.
But from HAL's point of view isn't that what it's all about? You increase the regulated asset base on which your max permitted revenue is calculated. After deducting operating costs,the difference between that and your cost of capital is your margin. If you're not allowed to make a margin, how can you justify the investment to your shareholders? HAL is only interested in promoting the scheme on the basis it makes an adequate margin
for them.