Originally Posted by
LTNman
A better question is how much goes to LRT aka the Council who are the airport owner? Recent history suggests nothing. Just like the drop off charges, car park charges, trolly charges and fast track charges. The operator keeps the lot while securing another £15m rebate from LRT for this year.
Mugged comes to mind.
It would be unusual for a lessor to pay owner for any profits from it's activities.
Can you then explain then this from AENA Accounts Q1 2023 "At London Luton Airport, other operating expenses have risen by €9.2 million, mainly due to the greater activity which has grown by 73.6% year on year, as well as the rise in the concession fee which increased by €5.8 million" which in my non accounting eyes they are actually paying more now.
And from the 2022 Full year Accounts "The conditions established in the Recovery Agreement have had the following accounting reflection:
– The offsetting of levies for the period from 1 April to 31 December 2020, amounting to £9 million. This was recognised in results of 2020 since during this period the paying and recording the fees of the concession agreement was stopped as the Group considered that the SFM clause of the concession contract was applicable.
– The remaining amount of the compensations amounts to 34.8 million pounds and has been recorded as follows:
• In 2020, Luton considered that in application of the Special Force Majeure clause of the concession agreement, the suspension of the payment of the fees from 1 April 2020 to 31 March 2021 was appropriate. This implied, in application of IFRS 16, a re‐evaluation of the contract proceeding to derecognise the right‐of‐use asset and the lease liability for £15.6 million. As a result of the agreement reached, the minimum fees from 1 April 2021 to 31 March 2027 are again enforceable, so the Group has recorded an increase in lease liabilities amounting to
£15 million (Note 20) and has recognised a receivable in the same amount which will be cancelled as the expected compensation materialises during 2022 (Note 13).
• Finally, £21 million is imputed on a straight‐line basis to results during 2021 and 2026. In 2022, revenues of £3.9 million, approximately €4.6 million (2021: £4.2 million; approximately €4.9 million) have been recognised.
– As a result of the extension of the concession period until 15 August 2032, the value of the right‐of‐use asset and the lease liability was re‐evaluated in 2021, increasing its value by £3.9 million."
So they didn't pay for a year but got an extension to the agreement of a concession extension of 16.5 months (from 31 March 2031 to 15 August 2032) but they are paying more since?