Originally Posted by
Skipness One Foxtrot
So they literally cannot survive without growth into LCC or they'd need to cut costs for a changed world? If the offering was only Loganair and Aer Lingus ATRs, channel islands and KLM they'd have to close? Are they servicing a high debt pile?
I thought the breakeven point for an airport in the UK to earn the cost of capital (no, not just £1 in annual profit) is about 1 million pax per year. Interest rates are no longer (almost) zero, so the cost of equity capital has increased since 2021. Let's assume 1m per year is an exaggeration by somebody and it's actually just 750k. How would SOU reliably and consistently hit this sort of number without significant LCC input ? There's no obvious sign of Aurigny, Blue Islands, Eastern or Loganair setting up a base at SOU like Flybe pre-Covid. LGW, BOH and even BRS, with their LCC flights, welcome leakage from SOU's catchment area with open arms.