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Old 17th Dec 2006, 09:11
  #8 (permalink)  
Haven't a clue
 
Join Date: Dec 2005
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Originally Posted by Bluel0gic
In the case of LPL, the airport is yet to make a profit, according to there own press statement, security costs have trebled in the past five years.
Not the fault of the pax, though. More down to to overly generous deals given to the LCCs. Presumably it is the duration of those deals which precludes the airport passing on these extra security costs to the airlines who in turn will pass them on to the pax through increased ticket prices. So the airport is looking to recoup through the turnstiles. Every now and then in any business something goes wrong with the cost base and good management should always have flexibility in it's pricing agreements or adequate reserves to absorb the cost until the opportunity to fix the problem comes around. It seems that the dash for growth by Peel Holdings has overlooked this.

Incidently I am fed up with pricing policy of the airline business as whole. Everything which was previously considered part of the cost is now being extracted and charged separately as an extra - fuel, insurance, security, APD, airport handling charges, food, baggage, seat selection, "service" charges, credit card fees; this list goes on and on. On some routes the cost of these extras far exceeds the actual ticket price. There will come a time when the customer base has had enough. Soon, I hope!
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