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Thread: MAG buy STN
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Old 19th Jan 2013, 14:15
  #6 (permalink)  
LGS6753
 
Join Date: Jul 2003
Location: Under the flight path
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What are they like, are they able to drop fees and attract more airlines, or will they pander to FR.
They certainly won't be "dropping fees" any time soon. They have just taken on a financing commitment of £1,500,000,000 so their first priority is servicing and repaying that debt (far larger than the debt ascribed to STN under BAA ownership).

I can't see them attracting new airlines, for a number of reasons:
  • Stansted is the worst located of the London area airports
  • It has a smaller catchment area than LHR, LGW or LTN
  • Ground links are poor - the M11 only links London and Cambridge, and rail services are infrequent and slow
  • New operators will be up against Ryanair
  • Gatwick and Luton both have some available capacity
  • Stansted will not be able to compete financially as long as it is saddled with debt

Of course they will look after Ryanair - they provide 70% of the passengers!!
MAG have overpaid, and overpaid seriously, for a white elephant.

Last edited by LGS6753; 19th Jan 2013 at 14:16.
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