How can BAA argue for a cut in APD (to boost numbers) and also want to increase costs at LHR (to boost numbers)?
APD is born by the airlines, increased costs go to the airport operator. It's not rocket science, it's business. Lose APD and increase costs is a win-win for the operator.
If you have a look at airport facilities in the UK the main lesson is that we don't pay enough to use them which is why they are often
1) Poor
2) Loco dominated
In the UK we expect Hong Kong style infrastructure for next to nothing while we fly for £19.99 less taxes. Like everything else in the economy, it's unsustainbable. Not a huge fan of the late lamented BAA but it's hard headed business acumen that is needed to put finances on a firm footing.