Originally Posted by
vectisman
I think you also need to take into account economies of scale when looking at the pricing. Cardiff has to provide certain services and safety standards to be able to legally operate as an airport. These costs have to be spread over a smaller number of
operators and passengers compared to the much larger number of users at Bristol. Personally I have no feelings about Cardiff either way, I was just pointing out the economic reality of the situation.
The Welsh Govt is the owner. The airport has the ability to put off making a profit over the short-term. It certainly has the cash and capital to keep operating. The airport should make a loss on aircraft fees to incentivise passenger numbers, and aim to make the money back through passengers passing through the airport terminal and spending in shops (of which the airport could own the franchises of to make more money).
The Welsh Govt has written off debt equivalent to over 2m passengers worth. When you have them through your door, you get them spending. It's a loss leader. It's what Southend did.