PPRuNe Forums - View Single Post - LHR given permission to build 3rd runway?
Old 20th Oct 2016, 09:16
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rutankrd
 
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Can we really expect Lo-Cos to take up slots at an expanded Heathrow? The charge per passenger is already around £40 and is widely expected to go up to fund the development of R3. How on earth does that fit with a Lo-Co business model? Surely they would have to put up fares to recover costs and would then cease to be a Lo-Co
Simple answer in the case of Easyjet absolutely they operate into/out of major EU airports today and business models evolve over time to meet changing risks and opportunities.

Fares from an expanded Heathrow would take account of the operating conditions and for instance you could see them introducing a business product and frequent flyer programme. Both would up yield and cash flow.
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