Basil
The short answer to your question is that payback will be achieved over the (weighted) average asset life, no more no less. This is currently 23 years,
Would the infastructure be subject to standard depreciation rules ?
If say that were done on the reducing balance basis to take into account usage, wear and tear etc and was set at say 10% per annum, would that not mean that effectively with such an astronomical build figure the LHR owners would be hamstrung with a colossal write down of circa £2Billion each year based on a build price of £20 Billion ?
You seem quite knowledgeable on these matters hence the request to yourself !
FDF
Always good to see your postings.
Given the high estimation of such a substantial handling cost per passenger to cover costs who would provide the "additional" connectivity to those "unserved" UK domestic destinations ?
Clearly we are looking into a crystal ball 20 years hence but establishing what might happen on current events, is the enormous timescale not a major part of the problem ?
Based on the "here and now" only Flybe a "LoCost" airline would appear to have the equipment, would they contemplate entering this market having just exited LGW for similar reasons.
With little appetite from BA to expand outside the current markets of MAN,GLA EDI etc etc all of which sufficient high frequency OR is part of the thinking to provide frequencies every 30 mins which to me at least seems wholly unneccessary, it begs the Q who steps in ?
Last edited by Bagso; 25th Feb 2015 at 18:20.