LUTON - 7
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Does Luton Borough Council have any say in who the new leaseholders will be for the airport?!
It seems strange to me, that the council can only choose initially who the leaseholders are for the airport, and all it takes is for the current leaseholder during their 20-30 year lease to sell it to whoever they like. I would have thought the council would have some clause in the lease stating if this situation occurs they have some sort of say in who the lease is sold to or the right to cancel it.
As the council will have agreed the original lease, based upon what those operators wanted to do with the airport and their future plans. If you sell on the lease, there is nothing stopping the new operators doing something completely different with the plans and something that LBC might be against and prevented an original tender from obtaining the lease.
I am also disappointed the council are not using this opportunity to possibly re-negotiate the lease of the airport, for a new 30 year period. This could then be used to secure future upgrades to the airport.
I am going to be my usual pessimistic self
and predict any future operator is likely to only make minimal upgrades to the airport in the short period they will have the airport for. To just maximise returns and profit on any purchase they make.
I think I would prefer to see the Australian bid from Macquarie Bank takeover the airport. Investment Banks and Private Funds usually have a track record in pumping money into businesses they buy and turning them around. This could however have a negative effect on airlines if charges were to increase, but on the other hand if facilities and infrastructure improved, that could go in the airlines favour.
It seems strange to me, that the council can only choose initially who the leaseholders are for the airport, and all it takes is for the current leaseholder during their 20-30 year lease to sell it to whoever they like. I would have thought the council would have some clause in the lease stating if this situation occurs they have some sort of say in who the lease is sold to or the right to cancel it.
As the council will have agreed the original lease, based upon what those operators wanted to do with the airport and their future plans. If you sell on the lease, there is nothing stopping the new operators doing something completely different with the plans and something that LBC might be against and prevented an original tender from obtaining the lease.
I am also disappointed the council are not using this opportunity to possibly re-negotiate the lease of the airport, for a new 30 year period. This could then be used to secure future upgrades to the airport.
I am going to be my usual pessimistic self
and predict any future operator is likely to only make minimal upgrades to the airport in the short period they will have the airport for. To just maximise returns and profit on any purchase they make. I think I would prefer to see the Australian bid from Macquarie Bank takeover the airport. Investment Banks and Private Funds usually have a track record in pumping money into businesses they buy and turning them around. This could however have a negative effect on airlines if charges were to increase, but on the other hand if facilities and infrastructure improved, that could go in the airlines favour.
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I have heard a rumour that Arriva who own the Greenline service are to stop all local bus services to the airport from July. Services affected include the
321 from Harpenden, St Albans and Watford
61 from Tring and Aylesbury
100 and 102 from Hitchin and Stevenage.
The routes will still run but just not go to the airport.
321 from Harpenden, St Albans and Watford
61 from Tring and Aylesbury
100 and 102 from Hitchin and Stevenage.
The routes will still run but just not go to the airport.
Last edited by LTNman; 3rd Jun 2013 at 06:06.
AENA - Update
(Reuters) - Barcelona-based infrastructure firm Abertis is in talks with Spanish airport operator AENA over the sale of its 90 percent stake in London Luton Airport, a company spokesman said on Monday.
Media reports over the weekend said AENA, which currently holds a 10 percent stake in Luton, had exercised its right to bid for Abertis's holding.
On Monday, Spanish newspaper Expansion said AENA was teaming up with French insurer AXA to bid for Luton, valued at more than 400 million euros ($518 million).
AENA declined to comment.
Media reports over the weekend said AENA, which currently holds a 10 percent stake in Luton, had exercised its right to bid for Abertis's holding.
On Monday, Spanish newspaper Expansion said AENA was teaming up with French insurer AXA to bid for Luton, valued at more than 400 million euros ($518 million).
AENA declined to comment.
Buster -
The point is that they are not a private company - they are an arm of the Spanish Government. And it's the Spanish Government that's broke!
Giles -
Yes - the Airport has agreed the current arrangements which gave AENA the 'first refusal' to buy the Abertis stake. I imagine the agreement was tripartite between London Luton Airport Ltd (the Council-owned company that owns the airport freehold), Abertis (90% shareholder) and AENA (10% shareholder).
Eric quotes:
That at least is a ray of light; although AXA is French, it is a 50bn Euro public corporation. If they are stumping up some serious cash, I expect they will be looking for either a stake, or nominated directors, or other influence over management. The French have a pretty good record of long-term thinking when it comes to infrastructure (TGV, decent roads & airports, etc).
Pretty impressive company, not too sure how they have been hit by the financial meltdown in Espania?
Giles -
Does Luton Borough Council have any say in who the new leaseholders will be for the airport?!
Eric quotes:
Spanish newspaper Expansion said AENA was teaming up with French insurer AXA to bid for Luton
AENA and AXA are not bidding for Luton airport because of long term thinking to make it a fantastic airport. They are bidding to make a long term profit. Spanish Govt has no particular interest in spending Spanish taxpayers' money to improve the lives of Brits in the UK.
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AENA know how to run airports - makes a change for Luton eh!
Very slowly AENA is being unwound, a UK company making inroads in air traffic control provision after the Spanish Government put a small part of AENA's network out to tender. FerroNATS
You could argue that part of MAG is owned by the UK, 10 Manchester councils which makes up 64.5% of the consortium.
I wondered where the 'cash' was coming from AXA certainly have that.
For all investments there are rewards in terms of profit. Whilst HM Govt deliberates over a new Heathrow or more runways, demand to access the London area by air will continue.
Now I wonder with LBC being in a financial muddle, would they be willing to sell, but that would mean the airport going on the market, this way, AENA gain access to the London market via the backdoor?
As for the bus situation, AENA know how to run airports - makes a change for Luton eh!
Very slowly AENA is being unwound, a UK company making inroads in air traffic control provision after the Spanish Government put a small part of AENA's network out to tender. FerroNATS
You could argue that part of MAG is owned by the UK, 10 Manchester councils which makes up 64.5% of the consortium.
I wondered where the 'cash' was coming from AXA certainly have that.
For all investments there are rewards in terms of profit. Whilst HM Govt deliberates over a new Heathrow or more runways, demand to access the London area by air will continue.
Now I wonder with LBC being in a financial muddle, would they be willing to sell, but that would mean the airport going on the market, this way, AENA gain access to the London market via the backdoor?
As for the bus situation, AENA know how to run airports - makes a change for Luton eh!
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Does the council still have a break out clause or has that been signed away with the extra two years put on the existing lease?
Could the council buy back the lease and then sell it at no cost to their preferred bidder?
Would AENA be bound to the councils wish to increase passenger numbers as per the existing plan seeing that they were already part of the old operating company?
Could the council buy back the lease and then sell it at no cost to their preferred bidder?
Would AENA be bound to the councils wish to increase passenger numbers as per the existing plan seeing that they were already part of the old operating company?
Last edited by LTNman; 3rd Jun 2013 at 17:46.
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Reports that Macquarie were rather keen on the concession as well!
AENA hold 10% of the consortium that already operates Luton, so my previous comments were not quite correct (AENA know how to run airports - makes a change for Luton eh!).
Interesting times ahead and something has to be done to combat the future development MAG plan for Stansted.
AENA hold 10% of the consortium that already operates Luton, so my previous comments were not quite correct (AENA know how to run airports - makes a change for Luton eh!).
Interesting times ahead and something has to be done to combat the future development MAG plan for Stansted.
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What I have witnessed of the Spanish airports I have used is that AENA run airports in the interests of the passenger! - shock - horror - that will be something new for Luton passengers to get used too.
May I also point out that the Spanish Government is not broke- it is in a bit of a parlous state - a bit like the UK Government!
May I also point out that the Spanish Government is not broke- it is in a bit of a parlous state - a bit like the UK Government!
C3B -
Without getting in to a debate about advanced economics, I think we can agree that the Spanish Government doesn't have a single peseta to spare for LTN!
If AXA provide the cash, and AENA the experience, we could be on to a winner. Let's hope it's not the other way round!
Without getting in to a debate about advanced economics, I think we can agree that the Spanish Government doesn't have a single peseta to spare for LTN!
If AXA provide the cash, and AENA the experience, we could be on to a winner. Let's hope it's not the other way round!
People - I'm not sure my previous message was sufficiently clear.
AENA is a Spanish public body that is part of the Spanish Govt and whose sole duty is towards the Spanish Govt. If the prime minister of Spain tells AENA to raise the landing fees at Spanish airports and pass some of the extra cash to the Govt, then AENA will likely do so (a refusal will likely mean the head of AENA needs to find a new job quickly).
AENA doesn't give a toss what Luton council wants or says. Anything AENA does outside Spanish territory is purely to make money from airport management fees. AENA know that Heathrow and Gatwick are both full and that Luton has no more space for overnighting aircraft - i.e. demand for access to Luton far exceeds supply. Heathrow, Gatwick and City are full at peak times. Typically in a free market when demand exceeds supply, the price of the product (e.g. landing fees) will increase until demand reduces slightly to equal supply.
If AENA ends up running Luton, they will manage it in a way to maximise the profit - i.e. maximum fees, minimum expenditure on the airport. Spanish Govt owned AENA does not care about whether something is in the interests of a passenger who is not resident in Spain and does not have a vote in Spanish elections.
AXA is investing money from places like pension funds and insurance premiums into Luton. AXA cares only about good stable long term returns for the money it invests. If the returns AXA provides are below average, the trustees of a pension fund are likely to fire AXA and replace them with a different money manager. AXA is not interested in the interests of Luton's passengers.
There's plenty good about a private company running airport infrastructure when there is genuine competition with other nearby airports - much benefit has come from the UK's utilities and infrastructure being privatised and becoming much more efficient instead of the bloated inefficient monsters they were while in Govt hands.
Maybe replacing the management by Abertis with that of AENA / AXA will bring renewed vigour and efficiency. It will not however turn Luton into a charity.
AENA is a Spanish public body that is part of the Spanish Govt and whose sole duty is towards the Spanish Govt. If the prime minister of Spain tells AENA to raise the landing fees at Spanish airports and pass some of the extra cash to the Govt, then AENA will likely do so (a refusal will likely mean the head of AENA needs to find a new job quickly).
AENA doesn't give a toss what Luton council wants or says. Anything AENA does outside Spanish territory is purely to make money from airport management fees. AENA know that Heathrow and Gatwick are both full and that Luton has no more space for overnighting aircraft - i.e. demand for access to Luton far exceeds supply. Heathrow, Gatwick and City are full at peak times. Typically in a free market when demand exceeds supply, the price of the product (e.g. landing fees) will increase until demand reduces slightly to equal supply.
If AENA ends up running Luton, they will manage it in a way to maximise the profit - i.e. maximum fees, minimum expenditure on the airport. Spanish Govt owned AENA does not care about whether something is in the interests of a passenger who is not resident in Spain and does not have a vote in Spanish elections.
AXA is investing money from places like pension funds and insurance premiums into Luton. AXA cares only about good stable long term returns for the money it invests. If the returns AXA provides are below average, the trustees of a pension fund are likely to fire AXA and replace them with a different money manager. AXA is not interested in the interests of Luton's passengers.
There's plenty good about a private company running airport infrastructure when there is genuine competition with other nearby airports - much benefit has come from the UK's utilities and infrastructure being privatised and becoming much more efficient instead of the bloated inefficient monsters they were while in Govt hands.
Maybe replacing the management by Abertis with that of AENA / AXA will bring renewed vigour and efficiency. It will not however turn Luton into a charity.
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If AENA ends up running Luton, they will manage it in a way to maximise the profit - i.e. maximum fees, minimum expenditure on the airport
Nothing really wrong in my eyes with the Spanish state owning AENA. EDF is owned by the French state but it won't stop them building Britain's new nuclear stations if the price is right.
I would think that the limited company running Luton and not the owners of that limited company will borrow the money on the open market to grow the airport. That money won't be coming from the Spanish government.
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South Stands & Biz Jets
Pabely - May and particularly June are always very busy months for Biz Jets so it's no surprise that the South Stands are being used for overflow parking. They have been used in previous years, but of course there is more space available this year.
Interesting thread on the Biz Jet Forum:
http://www.pprune.org/biz-jets-ag-fl...itpicking.html
Interesting thread on the Biz Jet Forum:
http://www.pprune.org/biz-jets-ag-fl...itpicking.html
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From the FT
Aena claims to be the world’s largest airport operator by passengers, with stakes in 69 airports. The Spanish government intends to sell a 49 per cent stake in the company by the end of 2013.
Aena claims to be the world’s largest airport operator by passengers, with stakes in 69 airports. The Spanish government intends to sell a 49 per cent stake in the company by the end of 2013.
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Any money AENA can make out of Luton will be gladly welcomed by the Spanish Government.
Sorry LGS6753 the Spanish Goverment will not accept pasetas - we use Euros now and have been for a number of years - please keep up!
Sorry LGS6753 the Spanish Goverment will not accept pasetas - we use Euros now and have been for a number of years - please keep up!
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Has the airport been busier than normal today with bizjets?
Apparently there is some big rich mans summit taking place at the Grove hotel near Watford for the next few days, called "Bilderberg"...
There will be fat cats, ermmm, no sorry I meant CEO's from many of the worlds largest businesses including Google, Goldman Sachs and financial leaders from around the world too attending.
Apparently there is some big rich mans summit taking place at the Grove hotel near Watford for the next few days, called "Bilderberg"...
There will be fat cats, ermmm, no sorry I meant CEO's from many of the worlds largest businesses including Google, Goldman Sachs and financial leaders from around the world too attending.
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So Easyjet does a deal with Stansted to increase passengers to 6 million. I hear it will not be good news for Southend but then it could well be bad news for Luton as well. So where is the Luton deal???