Originally Posted by
j636
Instead of paying dividends (or reduced ones) it should of been reinvested in the airport to a degree. These so called State operators around Europe don't always pay dividends if they are investing in hence why facilities are 10 times better and they are able to cope with growth.
You can't have your cake and eat it which MAG are trying to achieve at MAN.
As for the airport charges comment, completely un true, if MAN raised charges 40% tomorrow bar maybe Ryanair not a single carrier would leave the airport. MAG have plenty to invest in STN but giving nothing to MAN.
It's up to individal councils to decide budgets to raise x amount of money, they have become to used to relaying on MAG payouts who will unlikely change.
Do you want a improved airport or lower council tax/rates?
The airport was set up to provide both air services and a profit for Manchester City Council. During its ownership, the airport's infrastructure was developed and money put into the council coffers. Under GMC the same applied. Under the current ownership structure the profits are divided after setting aside money for investment in infrastructure. There isn't a single council that "relies" on the airport for income. They can't as their dividend varies. The income is a bonus to their council tax calculation.
MAG has a portfolio of airports and as a company will spread its expenditure as required to maintain and increase business. Whilst there is a good deal to criticise regarding the terminals at Manchester, there has been no lack of investment in other areas of the airport and the development plans will address future needs, regardless of the prognostications of the naysayers here which are based on individual, non-professional interpretations of disclosed plans.
No high profile business is going to invest massive amounts in demolition and rebuilding with a great deal of disruption along the way without the outcome being beneficial to the business and thus to its customers, in this case both airside and landside.
As for your business model of raising charges by 40%, Manchester is in competion with airports on a comparatively small island. Your business model would see an immediate downturn in service. Imagine a sweet shop unilateraly increasing its prices by 40%. The shop down the road wouldn't have to wait long to see a massive increase in business. As for driving out Ryanair, which provides service which vast numbers of travellers obviously want, that would be like driving Cadbury out of the sweet shop and would go against the airport's raison d'etre of providing service to its catchment area.