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Old 28th Jan 2010, 07:14
  #1660 (permalink)  
Winniebago
 
Join Date: Jan 2009
Location: Newcastle
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How long a lease?

What sort of lease of the airfield are ADP likely to secure?

The term of that surely will dictate the sort of volumes of cash they can justify throwing in to rebuild the infrastructure, new sheds etc. Is there any liklihood at all that a fresh face on the block could get another commercial terminal built within say three or so years without the city council and the county council mucking around all over again?

The City Council need to bend over backwards to remove any planning hurdles to prevent any development of any kind on the odd bits of spare land - non aviation related if need be - and the county council needs to stop mucking it all up. Trouble is, they are 100% pro-BHX and anything detrimental to BHX profitability will be challenged.

They key is how many years they can bare with a loss making property, waiting to turn the first 'proper' profit after interest, tax and depreciation - the next five years, seven years, ten years?

To get back to any 'commercial' capability its going to be about a million quid/annum for ATC, the same for fire cover and half again for security, then they've got to do whatever the CAA insist upon in terms of upgrades, repairs, enhancements etc.

Need that property rental and freight-related revenue more than anything else (and all else will be peanuts in relative terms) otherwise the figures will never ever stack up.
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