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Old 4th Aug 2015, 12:08
  #505 (permalink)  
Fairdealfrank
 
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FdF-- could you elaborate on your concept of accommodation. As I see it, if the project costs £20bn entirely funded by the air traffic, HAL will need to collect somewhere around £0.5bn per year extra off BA. The regulator will tell HAL what they are allowed to collect and probably what sort of formulae they will use (landing charges, per passenger charges etc). BA will pass that through directly to the punters just like every other slot holder.

Aside from start ups and specific marketing initiatives there will be no scope for anything which might be anti-competitive across airlines in the aero charges.

How do you see it?
It's a gut feeling based on common sense, have no knowledge of what wiggle room may be available. If there isn't scope for some accomodation, then BA has to suck it up, it has nowhere else to go.

Both parties might regard such arrangements (if there are any) as "commercially sensitive information". The CAA may have some rules that have to be followed and the EU would almost certainly interefere somewhere down the line, so impossible to speculate.

As mentioned above, IAG is acting in the interests of its shareholders and that it's a negotiating ploy, that also implies that there is a deal to be done.

The new rwy won't be financed entirely by airline charges. HAL can issue bonds, accept new investment, increase concession charges, increase car parking charges (ouch), etc.. It's all about supply and demand.


IAG is only doing what any other company would do (and should do) protect the interests of it's staff and shareholders.

Unfortunately for them, BA is a 'mature' company (= 0ld) and they cannot roll back their cost base very much more. So they will fade from the scene and then be taken over by someone on the up.

In due course, THAT airline will get fat and mature. It is what human beings do.
So what is to be done? Create subsidiaries with different (worse) terms and conditions for staff and transfer parts of the business to them?

Maybe go down the road of Germanwings (LH) or Hop (AF)? AF and LH are as mature/old as BA. Maybe VY could take on the equivelant role.

Last edited by Fairdealfrank; 4th Aug 2015 at 12:21.
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