STANSTED - 2
The first person to comment on the above-mentioned article has it right:
It's rather a smack in the face for MAG who bought Stansted recently on the assumption that is was best placed for expansion and short-term growth. Paying £1.5bn for the asset (£.5bn over the initial spot price) can't help the misguided CEO in feeling very festive either
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STN - Dole DLE
Have Ryanair closed the summer seasonal route to Dole in eastern France, or is it just taking a very long time for schedules to appear ?
I don't know whether Dole will appear or not for next summer, but looking at the loads it is the second worst Ryanair route from Stansted with an average flown load factor barely over 50%, peaking at 76% in August. Of course yields do not necessarily correspond to loads and there may be marketing 'arrangements' with the airport that can make a route profitable even with low loads. Incidentally, the worst performer was Maastricht.
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Diversions for Nigel
12:59 SWR45C HB-IYT Avro 146-RJ100 E3380 Swiss European Airlines 10250 1075 13:13 CFE39D G-LCYO Embraer ERJ190-100R 19000430 BA Cityflyer 9000 1025 15:20 REA6EN EI-FAT Aerospatiale ATR72-600 1097 Aer Arann 21000 1125 15:22 LGL95E LX-LGM De Havilland Canada DH8-402Q 4425 Luxair 15175 1275 15:50 AZA97U I-BIXQ Airbus A321-112 586 Alitalia 30350 1225 17:19 NAX2441 LN-DYF Boeing 737-8JP/W 39004 Norwegian Air Shuttle 28750 1275 17:31 SWR45U HB-IYS Avro 146-RJ100 E3381 Swiss European Airlines 30000 1300 17:56 SWR49B HB-IXP Avro 146-RJ100 E3283 Swiss European Airlines 27975 1250 19:05 SWR48U HB-IXO Avro 146-RJ100 E3284 Swiss European Airlines 28000 1325 21:50 RJA111 JY-AYT Airbus A321-231 5099 Royal Jordanian Airlines 24000 1450 21:59 MON249 G-OZBH Airbus A321-231 2105 Monarch Airlines 27000 1450 22:00 AZA20Y I-BIXA Airbus A321-112 0477 Alitalia 35875 1450
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Stansted: News releases
Confused?
This implies that MAG can charge what they like within reason, but I assumed that MAG had negotiated ultra low cost lock-in deals based on a guaranteed commitment to growth.
Confused?
This implies that MAG can charge what they like within reason, but I assumed that MAG had negotiated ultra low cost lock-in deals based on a guaranteed commitment to growth.
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Bagso
Airport charges are only regulated if the airport is viewed as having significant market power. When airport privatisation took off back in 1987 four UK airports were subject to such price control - the BAA London airports of Heathrow, Gatwick and Stansted, and Manchester. Manchester was removed from price control a few years back, the regulator (CAA) and DfT having been convinced that it operated in a competitive market and did not require prices to be capped. Now that Stansted has been sold by BAA the regulator has now decided that it too is operating in a competitive market and does not require price control.
So airport charges at Stansted are now determined purely by negotiation, as has been the case at MAN (and all other non-London UK airports).
Airport charges at Heathrow and Gatwick remain subject to regulation, although the regime has been loosened slightly at Gatwick.
Airport charges are only regulated if the airport is viewed as having significant market power. When airport privatisation took off back in 1987 four UK airports were subject to such price control - the BAA London airports of Heathrow, Gatwick and Stansted, and Manchester. Manchester was removed from price control a few years back, the regulator (CAA) and DfT having been convinced that it operated in a competitive market and did not require prices to be capped. Now that Stansted has been sold by BAA the regulator has now decided that it too is operating in a competitive market and does not require price control.
So airport charges at Stansted are now determined purely by negotiation, as has been the case at MAN (and all other non-London UK airports).
Airport charges at Heathrow and Gatwick remain subject to regulation, although the regime has been loosened slightly at Gatwick.
... and the major customer doesn't like it
Ryanair furious over Stansted deregulation
The CAA's Deregulation Of Stansted Airport Is More Regulatory?
The CAA's Deregulation Of Stansted Airport Is More Regulatory?
Last edited by LGS6753; 10th Jan 2014 at 15:11. Reason: additional link
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Yes, Ryanair seemingly has such an agreement. But I suppose they want the added protection that a greedy owner of STN might try it on and increase charges in future, as BAA did in 2006. They conveniently forget, however, that the 2006 increase in charges (actually an expiry of previous time-limited discounts) was sanctioned by the CAA - in that the regulatory price caps have always been higher than the prices actually charged by the airport. Stansted has never been able to price up to the maximum allowed by the CAA, unlike LHR and LGW.
I imagine that any contract between Ryanair and Stansted will specify airport charges for only limited period of time - perhaps 3 or 5 years. Beyond that timeframe the fees will be open to negotiations
Worth noting that if demand for flying and thus runway slots around London increases as time passes but no new runway is available to use for over 10 years then one might expect Stansted to become a lot more busy and MAG less willing to grant big discounts. Perhaps possible that STN will have a different structure of fees - whereby landing between 2100 and 2359 on a Sunday suddenly becomes very expensive compared to landing at 1500 on a Tuesday. Would make FR's position at airport charges negotiations in 2018 considerably weaker
Worth noting that if demand for flying and thus runway slots around London increases as time passes but no new runway is available to use for over 10 years then one might expect Stansted to become a lot more busy and MAG less willing to grant big discounts. Perhaps possible that STN will have a different structure of fees - whereby landing between 2100 and 2359 on a Sunday suddenly becomes very expensive compared to landing at 1500 on a Tuesday. Would make FR's position at airport charges negotiations in 2018 considerably weaker
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Yes, the CAA's decision raises some concerns that the much-vaunted contractual arrangements might not last, and reserves the right to intervene if that leads to unreasonable behaviour by the airport owner. In practice, however, once an airport is deregulated it will require something pretty awful to happen before price controls are reintroduced.
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I think's it's very hard to say whether this is good or bad news at the moment.
Is the regulation simply just price caps or maximum limits to charges? Or does it have further limitations attached such as rules on certain deals or pricing structures for example?
Is the regulation simply just price caps or maximum limits to charges? Or does it have further limitations attached such as rules on certain deals or pricing structures for example?
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There will be no direct controls on charges after April. Airlines will still have general protection under wider Competition law, and also against unreasonable discrimination. But the price caps that have been in place since privatisation will go (not that these have had any real impact at Stansted).
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Good to see Stansted back in positive numbers with it`s first year under new ownership.Pax for December `13 + 7.7%,itself being the fourth consecutive month of growth & marking the first year on year growth since 2007.. Regards, The Southside..
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Slots booked for the summer reportedly up by double figures percentage.
No doubt the LTN crowd will be over in a minute to point out why this is terrible for the airport and repeat that 'no-one wants to fly from Stansted...'
No doubt the LTN crowd will be over in a minute to point out why this is terrible for the airport and repeat that 'no-one wants to fly from Stansted...'
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Low Cost Holidays Charter Flights
It has been mentioned on the EMA thread, but do Low Cost Holidays dot com actually charter their own flights? It does seem they have a programme from Stansted this coming summer which do not seem to tie in with any of the TOM/TCX flights or those offered by EZY/FR.
Destinations seem to include: Palma, Ibiza, Tenerife, Faro.
Any ideas?
Destinations seem to include: Palma, Ibiza, Tenerife, Faro.
Any ideas?