"Cash Cow"
It has been officially confirmed today that Aberdeen has been used by the BAA as a "Cash Cow" and been deprived of investment for over 20 years. The Competition Commission has issued its Provisional Decision on Remedies in its investigation into BAA Airport Markets.
From the report: (My emboldening)
"Our analysis of capital expenditure relative to EBITDA at Aberdeen over the 20 years to 2006/07 compared with that of other BAA airports suggested a significant lack of development. Projections for capital expenditure for the next ten years for Aberdeen were also comparatively modest. Aeronautical revenue per passenger and levels of profitability were high relative to other BAA airports. We also compared prices at Aberdeen with those in force at airports where we were able to observe competition. This comparison showed that in 2006 and 2007, Aberdeen’s average net revenue per passenger was higher than that of virtually all non-BAA airports we looked at and also that it was higher than all BAA airports except Heathrow and Southampton."
DD