star alliance vs baa
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star alliance vs baa
The Financial Times reports:
15 airlines in the Star alliance have become incensed by what they regard as their unequal treatment by BAA in its development of new billion-pound facilities at Heathrow [ie Terminal 5].
[Terminal 5] will be occupied almost entirely by British Airways, a leader of the Oneworld airline alliance, a big rival to Star.... and will provide a big competitive advantage in particular for transit passengers flying on the network.
The Star airlines are seeking a commitment by BAA that it will provide comparable facilities at an early date through the redevelopment of the existing central area of the airport and most importantly terminal one, where the carriers want to be co-located under one roof.
BAA has informed the airlines that it is unable to allocate the necessary capital to complete the central area project by 2008 and that it may not be ready before 2011...
15 airlines in the Star alliance have become incensed by what they regard as their unequal treatment by BAA in its development of new billion-pound facilities at Heathrow [ie Terminal 5].
[Terminal 5] will be occupied almost entirely by British Airways, a leader of the Oneworld airline alliance, a big rival to Star.... and will provide a big competitive advantage in particular for transit passengers flying on the network.
The Star airlines are seeking a commitment by BAA that it will provide comparable facilities at an early date through the redevelopment of the existing central area of the airport and most importantly terminal one, where the carriers want to be co-located under one roof.
BAA has informed the airlines that it is unable to allocate the necessary capital to complete the central area project by 2008 and that it may not be ready before 2011...
Not all 15 Star airlines operate through Heathrow anyway so don't quite see how all 15 can be "incensed".
I would have thought they were going to get a considerable advantage in any event once T5 opens due to reduced overcrowding. And once T5 opens (2008 ?) and the contractors then get to work in the empty spaces of T1 and T4, it's going to take them until 2011 anyway for a big refurbishment. What I would have expected.
Anyone have detail of what the Central Area Project entails ? Will it start by replacement of the cowshed structure the Irish flights currently depart from ?
I would have thought they were going to get a considerable advantage in any event once T5 opens due to reduced overcrowding. And once T5 opens (2008 ?) and the contractors then get to work in the empty spaces of T1 and T4, it's going to take them until 2011 anyway for a big refurbishment. What I would have expected.
Anyone have detail of what the Central Area Project entails ? Will it start by replacement of the cowshed structure the Irish flights currently depart from ?
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All 15 can be incensed because it is the alliance that is being disadvantaged, relative to OneWorld.
If you want to know why, it is because they are PAYING for Terminal 5 in increased handling costs (up 50% over 5 years?), but not getting any benefit.
Most businesses accept "risk" when they invest money. BAA, in funding T5 from increased handling charges in advance, is incurring no risk, but substantial benefit. The cost is being borne by BAA's customers, who (because BAA control LHR, LGW and STN) don't have a choice of supplier.
Get it now?
If you want to know why, it is because they are PAYING for Terminal 5 in increased handling costs (up 50% over 5 years?), but not getting any benefit.
Most businesses accept "risk" when they invest money. BAA, in funding T5 from increased handling charges in advance, is incurring no risk, but substantial benefit. The cost is being borne by BAA's customers, who (because BAA control LHR, LGW and STN) don't have a choice of supplier.
Get it now?
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WHBM
Not all 15 Star airlines operate through Heathrow anyway so don't quite see how all 15 can be "incensed".
So I think its of significant enough importance to Star!!!!!
