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Old 20th Jan 2006, 10:07
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The SSK
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Originally Posted by chornedsnorkack
Can major airports go bankrupt? And what are the effects to the airlines that operate from the airport up to the time the airport folds? Or to the place served by the airport?
The short answer to your question is that major airports are normally much more profitable enterprises than airlines. With very few exceptions (BAA is one) they can charge what they like for landing fees, plus round about half their income comes from non-aeronautical sources, principally retail and catering concessions. Bear in mind that passengers trapped in an airport are a captive market, generally with money to spend and very little else to do with their time than browse the stores or use the cafes.
Regional airports are another matter, they can't deliver the same passenger volumes to the retailers, and if they offer airlines 'take it or leave it' fees the airlines might just leave it. However, they are normally owned (and subsidised) by local or regional authorities or in countries like Spain or Finland they are part of a national airport authority and cross-subsidised from the profitable hub.