After tax and after paying Luton council £11.8 m in fees the airport made 16p profit per passenger in 2004
Agreed - but this still represents a net profit of around £1.2m for 2004/05.
The Concession Agreement with Luton Council is a real moneyspinner for the local worthies and councillors (not that they appear to spend their £11.8m on anything tangible or innovative...) but it's a major handicap for the airport operating company because it prevents effective competition with its main business rival, BAA Stansted which continues to use cross-subsidies to support its Stansted charging regime.
But rest assured, if the Concession hadn't been devised and let, and Luton Council had continued to run (or should that be run down...??) Luton Airport, you wouldn't be seeing the investment that's currently taking place nor the passenger or movement figures.
Given the thoroughly incompetent way in which Luton's councillors and the previous airport management ran the Airport for the twenty years 1980 until 2000, it's probable that had it stayed 'in house' Luton would by now, have become the Lydd of the northern Home Counties.
The present management incumbents are at least commercially-minded and street-wise: but they're running the business - much to the approval of BAA - with 'one hand tied behind their backs'!
