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Old 20th Jun 2018, 19:54
  #173 (permalink)  
mwm991
 
Join Date: Jun 2015
Location: Glasgow
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I just listened to the committee.

They said they have spoken to 23 airlines. Closest they have got is with a Cypriot operator but an "operational issue" with pilots put paid to it.

Met with upto 17 cargo operators.

Feel they could sustain a London service. At a recent summit they were told by Flybe and Easyjet that they would consider a PIK-LHR route if the third runway came to fruition. However they also realise that they service would need to be more than 1x daily to be attractive to business. Number of flights from Glasgow and Edinburgh works against them.

They feel a lot of smaller aspects of the business are doing well like fuelling, maintenance, rent occupancy.

They got grilled about how much the passenger ops service is costing them. Asked why it has taken them 5 years to realise that passenger ops at the airport has been losing money, which they conceded. However they said the are carrying out a review to understand truly what makes money and what doesn't at the airport. They blamed managerial changes for the length of time being so long. Admitted they are up against it with other airports which are better located. Stated that at the end of the next review they may make a recommendation to cease passenger ops if it saves the business.

Stated they have virtually no inbound traffic and are reliant on sun, sea and sand outbound.

Asked if and when the taxpayer would get their money back and they couldn't answer. They did make a lot of argument about the value of the 800 acres of land of the airport. One of the panel mentioned that Nicola Sturgeon had told them at the time that of purchase by the SG that they would not loan more to airport than the value of the land. When told by one of the panel that they didn't think they could pay the tax payer back but if they could what year would the tax payer see their money back, Ian Forgie the Finance Director couldn't answer this.

Annual loans are pretty much spent on maintaing the infrastructure of the airport, i.e terminal, runway etc.

Also told that they have now went in a different direction from their original five year plan in 2014. A panel member said they found that confusing and that the airport is playing a dangerous game by relying on FR as their lone operator when they are notorious for ditching airports on a whim.

They did say that passenger numbers and cargo were marginally increasing. Although with no service increases coming and minor reductions from their only operator, concern exists.

Said that most parties who want to invest in or buy the airport want to basically bulldoze the place and build houses and they will only sell to parties which have the same vision of the board. They are not actively looking to sell the airport but if the right bid comes along they will talk.

Asked about how long SG would keep funding a loss making entity. No one really knew.

Lots of chit chat about the Heathrow Hub and the Spaceport but nothing really concrete. Just talks and meetings are ongoing. A lot of non-disclosure stuff.

A new commercial director coming in and they have recently hired a "cargo industry expert" who lives 10 minutes from the airport and is retired. His contacts have helped the airport.

Overall it felt very defeatist. They are relying on areas of the business which make minor profits to prop up the drain of the passenger operations.

Last edited by mwm991; 20th Jun 2018 at 21:50.
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