7006 ''One has to accept a loss over a considerable period of time before seeing a benefit. That is great if the risk is shared, but if it is one-sided, i.e. low charges from the airport and "...oh by the way if the route does not work we will can it..." That is in a way true, however 7006, please don't think that the 'established' lo-co's don't have a pretty good idea of if that route will work before starting it. In the early days of lo-co's it was certainly more of a risk, but now the established players are far cuter regarding the potential yeilds. Don't forget if they have to 'can' a route thats a big loss for them too. Money as a lo-co operator you can ill afford to lose. A new lo-co would present a greater risk to an airport in my opinion, unless they really have a unique product. Both eJ and Ryan are pretty bullish about the likely survival of small or new operators. Have a search for an airline called NOW on the prune forums and you'll see what I mean. It was an operation that many of us around the lo-co side of the industry had deep reservations about, and unfortunately for those who joined NOW, we were proved right.
Again one element you appear to have missed out on (no disrespect here), is the increase in volume of pax through the terminal, increases the business potential and money making potential on terminal commercial agreements. The BAA has for years made more money from the terminal commercial activities than they do from airport operating charges. If you look at places like Luton, the amount of terminal commercial activity, (i.e. serving the pax) has increased beyond all recogniton. This is primarily due to lo-co operations, take a look at Airline series 1, and compare with the latest programmes. Ignore the people, look past them into the background, the airport is unrecognisable. Its partly a 'no pain no gain' equasion, however I suggest with the established lo-co's the odds are far better of making a return. When eJ turned up at Luton the concept was unheard of, flying for the price of a pair of jeans, but see the way the industry has changed since. Unfortunately Humberside is arguably in the wrong location, and has lost out to DSA in attracting lo-co's and the potential revenue they bring into the region. The no pain no gain outlook is also seen outside the aviation industry, Tottenham Council in London is offering free deals to high street chains to come to their area, to assist in regeneration and all that goes with it. Its a risk certainly, but what else will encourage them to come?