MANCHESTER - 7

[Shed-on-a-Pole]

Roy Hudd -

Further to your posting *395, perhaps you could expand on exactly what you mean by Manchester Airport's management having "messed up big time, wrong time"? I may possibly agree with your final conclusions, but all I see from your posting is a damning conclusion with no presentation of supporting evidence.

I presume that you have some difficulty with the concept of Manchester Airport increasing its revenue streams from non-aviation activities such as retail? But why? Is it not eminently sensible for the business to increase income via all possible channels to help the airport weather a global economic crisis of epic proportions?

Yes, passenger numbers and cargo tonnage have fallen (and they will fall further). Yes, airline companies have retrenched or ceased trading (and others will follow). Yes, Manchester has endured considerable pain (and that will continue). But conditions driven by the global economic situation are not within the control of Manchester Airport's management. All they can do is mitigate damage caused to the business by protecting and nurturing those revenue streams which they do have the ability to influence. Increasing the retail take seems one entirely sensible way of doing this; the remaining 20 million plus annual passenger throughput and the several thousand staff still have worthwhile (if reduced) spending power. Maybe they will trade down from luxury goods to utility goods, but ultimately many will spend, and if they do so at Manchester Airport so much the better.

An airport is a business with very high fixed costs which MUST be paid regardless of economic conditions. If retail can help to achieve service of these costs at a time when revenue from the aviation side of the business is contracting, then I say bring it on! I am not averse to criticizing airport managers on occasions when that is merited (MAN's famous never-functioning lifts/escalators etc!), but on the matter of encouraging retail expansion I can't fault their logic.

The UK economy is in a deep recession; other key economies are similarly afflicted. Transition to global economic depression cannot be ruled out. In these circumstances, air services to Manchester (and elsewhere) will be adversely impacted. The airport management don't like that situation any more than you or I, but it is completely beyond their control. This is a problem caused by criminal irresponsibility at the highest levels of the international banking sector, complicit regulators and clueless politicians. It is not the fault of MAG. All they can do is protect their business from the resulting economic fallout to the best of their ability. I cannot fault them for seeking to increase revenues from all areas of the business - including retail - at this difficult time. I can't see how that can be described as "messing up big time, wrong time." The management response makes complete sense to me.

I would welcome a response to clarify your position on this issue.

Cheers, SHED.

Added Comment: Re Bonus Payments to MAN Airport Management Personnel. If any such payments have been made (and I don't know whether that is the case or not) then they will not be borne by the taxpayer. Indeed, over recent years Manchester Airport has been a substantial net contributor to the funding of the ten local authorities comprising Greater Manchester through the payment of regular dividends. This has made the council tax burden on local taxpayers LESS than it would otherwise have been. The airport also makes voluntary contributions (sponsorships etc) to several community schemes in its surrounding districts. MAG is not a drain on taxpayers in Greater Manchester. And nationally, MAG has paid regular taxes to the exchequer on its annual profits to the benefit of the wider community.