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Old 2nd Sep 2007, 15:20
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TurkeyGeorge
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Hi there Clinton! Didn't I see you on stage at the Phoenix Club a few years back? I was sat behind Sonya and Debbie!!!Anyway, as Pyskit, you should have worked out that the new owners of LaBIA have only got a limited amount of time to make the pennies turn into pounds, and the quickest way is to generate money retrival outlets. Then you increase the PAX throughput and if that generates on target earnings, coupled with on target savings across the company, they can then bring in the money (By borrowing) to upgrade the infastructure.This is good company practice as it shows the business is there so the money needed to make good the runway, etc, is not wasted. The amount they borrow is related to the amount they can earn. Therefore the harder you all work, the less money you take out (IE time off, instead of Overtime) and the more money you get out of passengers, increased by more passengers all adds up to more money to spend on the things that need doing but dont directly generate income, and will almost certainly, not be quick projects.The best business works out where it can generate income quickly, gets that working, sees the money flow, and invests in the longer term.The company that bought LBA, will get in and out quick, so it needs to generate money streams fast, that increases the value of the business, which means its holdings go up in value, so it will sell on making a tidy profit, but setting the business up for a company that has its hands on longer term regeneration on building on exisiting levels of business, which currently does not want to be bothered with the risk.Get to 5m passengers within the next 5 years and you will see what I mean. The 1 or 2 companies that would want to buy LBA then, are currently upgrading there own airport infastructures but will be ready to move in over the next number of years.Of course, if the doom sayers have there way, then the company currently owning it, will lose its money, and will have to give it back to the council! By which time they will have spent the money on things like childrens play areas etc, and will have to get the government to give it a grant to pay for the things like a new runway!Now the question is? Is there a John in the Audience?
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