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Old 8th Jan 2014, 19:03
  #62 (permalink)  
Munnyspinner
 
Join Date: Sep 2005
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Christmas Chaos LGW

GIP, the owner of LGW, is a multinational infrastructure fund whose investors are themselves large funds. As they are effectively looking for equity return I doubt they care much about a blip like this which has a minimal effect on revenue over a financial year. Actually, as a regulated business the ' profitability ' of the airport in cash terms is dictated by the regulatory asset base RAB on which the owner/ operator is allowed to earn a fixed return. If LGW is required to invest more capital in flood defence etc this will increase the RAB which will in turn justify raising prices. Whichever way this pans out - we'll pay for this up muck!
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