LUTON - 6

[Powerjet1]

Whilst I do not profess to fully understand the intricacies of the agreement, if ACDL do implement a "withdrawal" from 2015, effectively handing the airport back to LBC, as opposed to 2028, their options are somewhat limited surely.

1. LBC could run the airport themselves. God forbid, as we all know what happened in the past, and in the current highly competitive enviroment, this would be an absolute disaster. Legally now though, I don't think this can happen.

2. Put out to tender for another concession period of 30 years, or maybe this time slightly longer, to see if they can squeeze even more money from a new operator, but who in their right minds would then be willing to take that on, bearing in mind what has happened this time, since by now STN has got its second runway , all the airlines have moved over to Essex. Main user would be a local flying club + corporates.

3. LBC to sell the airport, lock, stock & barrel. Hey, mind that pig, passing overhead the 08 threashold.

4. Convert the field to sheep & dairy farming.

In all seriousness though, a pretty uninviting outlook, due to the total intransigence of a completely blinkered LBC.

[antilla]

Is there not a 5th option - to use the area for housing and create an alternative source of income?

"Conveniently located for Luton's shopping and employment centres, good access to the M1, main-line station close by, no danger of flooding ........" - I can almost imagine the estate agents' hype already!

I have no idea how this would compare with income from the airport concession, but it would surely be more profitable than converting it for sheep and dairy farming.

[Powerjet1]

Option 4 was purely "tongue in cheek".

[CAP493]

...the bottom line is that the Council can terminate the agreement by paying compensation not the other way around

Precisely! And with a profit of just over £5M (hopefully net??) why on earth do you imagine that any commercial organisation that has financial targets and shareholder aspirations to achieve would be willing to invest the £££ millions needed to get Luton up into Division 1, when the Concession expires in 20 years time and - to grant a new one - LBC will have to go out to competitive tender probably in about 17 years from now? The recent statement from TBI/ACDL that its next announcement will be its development plans for the next 8 years is not a 'ball-park' timescale, but one that's linked directly to the 2013 break clause date.
The concession model that LBC chose for its Airport back in 1998 is a disaster, and one that's not been copied by any other local authority in the UK (which rather proves the point). It's true that it's provided LBC with a constant revenue stream of effectively 'unearned income' but that stream is very likely to dwindle or dry up from 2013. And who can tell what levels of direct and indirect revenue might have now been forthcoming if LTN had, like MAN, EMA, BRS, NCL, etc., etc., been sold off to the private sector?
Interestingly, even the model that was established for BHX (where the Airport Company is part-owned by several local councils) has now run into difficulties because of the councils' short-termism and the mismatch with the commercial investors who take a longer-term corporate view of the business.
Privately, ACDL views LBC as an albatros around its neck; and (as in the past) LBC seems completely incapable of understanding the business imperatives of operating an airport that has to continuously develop in order just to to maintain, never mind increase, its market share in the aggressive London airports marketplace.

[Buster the Bear]

The three preferred bidders as nominated by LBC for the concession back in 97/98 were:

• Copenhagen Airport
• National Express
• AGI

Not one of them in my opinion was worthy of the airport and its potential. All the 'proper' bidders bailed out due to LBC's T&Cs.
Is Peter Watson still involved at the Town Hall, for his foresight gifted their coffers £1.43 for every arriving and departing passenger? A blindingly brilliant deal for Luton in the short term. Looking on, was this the best deal for the town and its residents, but more importantly, its airport?

[22/04]

It really does depend where things are going.

LTN has a usable runway with good connections to London.

Even if looses thes LOCOs there msut be marrket comprising business jet and premium business travel - so Harrods, Signature and the likes of SilverJet. may be the locos will go.

Furthermore as a Milton Keynes resident Stansted does not serve me at all, so my real options are LTN, BHX or EMA or CVT (LHR or LGW for long haul but I wouldn't touch them for short haul). I am sure arilines will want to serve this market. None of these ariports has anything compared with proposed LTN expansion.

At least one politically active acquaintance of mine just sees runway capacity putting air travel pricing back to where it was - one trip a year for the masses and serving business need, slot prices pricing the loco's out. If he's right then we won't need increased capacity.

I don't see Luton dying - if it stuck with its infrastructure it is likely to simply serve those who can afford to pay.

[pabely]

22/04, some good words and I think your home town probably helps LIA more than they ever admit, being in a different county. Would things be different if it was jointly owner by Herts, Beds & Bucks? A large number of multi-nationals base their European operations in MK? And MK set to grow twice in size - got to be good business for the premium customers, Signature, Harrods, Silverjet? Just a comment....

[CAP493]

All the 'proper' bidders bailed out due to LBC's T&Cs

Ah, so true: in fact the two 'heavyweight' bidders (CPH and FRA) both pulled out because of the deal that LBC was offering, FRA publicly saying that the investment needed to undo the years of neglect and under-investment by the Town Hall, required a minimum 50-year payback period to make it commercially viable.
Which is precisley what ACDL has now discovered - and sadly, is what LBC's boneheads still seem unable to comprehend.

[ebenezer]

The sadest aspect of this LTN saga is that the efforts - and let's be honest, the notable success that the LLAO management team (as opposed to the previous bunch of lacklustre incompetents [with one notable exception who jumped ship having realised LBC was a major impediment, and who now resides in London's docklands...]) has achieved in raising LTN's passenger numbers to the near 10 million mark, the improvements to the terminal facilities that we now see (I agree there are some areas that could do with a revamp, but compared to what the Council offered its airport customers prior to the Concession [and seeemd to consider as a satisfactory standard] it's just streaks ahead), and the real elevation of LTN's status into an accepted major London Airport - have effectively been thwarted and ultimately will be negated by LBC's short-sightedness, intransigence and utter stupidity. It just makes you

[Buster the Bear]

Wizz to increase Bucharest to daily and additional capacity of 12.5% to Budapest.

[andyafc]

plus the addition of wroclaw and tirgu mures so its not all bad

[ClearLand08]

Luton advert - is this really my local airport?

Something to lighten the mood a little after the serious and somewhat gloomy posts re LBC etc.

Advert link removed.

Sorry, as humerous as it was, the organization may contact PPRuNe to arrange for their advertising.

[Buster the Bear]

I thought advertising was banned ClearLand08?

I hear rumours of certain low cost airlines not selling their peak capacity and as a result, yields are suffering badly? Now considering the summer 3 months are the 'cash cow' sustaining the rest of the year for these airlines, one can only surmise consolidation will occur within the UK sometime soon?

Basically, if you cannot fill your planes in July and August and fleece your customers accordingly, then belt tightening will occur!

[LTNman]

Work has started on Harrods new terminal located at hangar 129. A visit today revealed that the outside cladding has been removed from the building.

[Buster the Bear]

How long before the noise complaints start? Fabulous looking place, much better than my Bear Palace!

http://www.dunstabletoday.co.uk/View...icleid=3026255

[phnuff]

Well, they would have a point. Unlike most of these things which are built near airports, Luton Hoo was there first

[LTNman]

The M1 is closed in both directions at junction 10 (Luton Airport) for 18 hours this weekend as another bridge is demolished. To add to the misery Airport Way is closed on Saturday and Sunday for 12 hours each day as work continues on the new dual carriageway.

[Buster the Bear]

It will all be worth it in the end! Just think how much more swiftly you be able to join the queue under the taxiway once the roads have been upgraded from the M1!

[LTNman]

Should be a good news story coming out of Luton sometime this month. Word on the apron is that a handling agent has been approached to provide facilities to a scheduled airline that will be sending flights from several airports into Luton this coming winter. Nothing signed yet but it is considered that it is a done deal.

Anyone care to take a guess which airline it will be

[Buster the Bear]

Flybe? Loads of Dash-8 destinations too 'thin' for a Boeing or Airbus.

Do Centralwings still exist as Luton was on their reserve list?

Based upon its a 'done deal', that is enough to see this particular airline go back to the BAA and beg?

How about Flyspamglobally, I just love their name!