LUTON -8
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All of Luton's airlines are well aware of the airports current limitations but have presumably all brought into what the airport can deliver once the expansion plans have been completed and as a result are prepared to commit to the airport, whether that's through continuing existing services or expanding into new routes and frequencies.
Whatever the airports current issues, it doesn't seem to be putting either airlines or passengers off so Luton's continued rise and growth is to be welcomed.
Whatever the airports current issues, it doesn't seem to be putting either airlines or passengers off so Luton's continued rise and growth is to be welcomed.
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LTNman -
Unfortunately, the short-sighted councillors on Luton Borough Council put the kibosh on those plans because they extend beyond the airport's (and the Council's) current boundary.
Unfortunately, the short-sighted councillors on Luton Borough Council put the kibosh on those plans because they extend beyond the airport's (and the Council's) current boundary.
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I think the plans were scuppered by the airport itself due to cost and not the council although I can see the day when a new apron south of the runway for long term business jet parking is built.
This would be easier to get past the planning authorities and would not increase capacity at the airport but would allow the FBO's to grow their businesses which will be curtailed at some point when the demand for airline stands shrinks available parking for them which will start to happen from next year.
Oh and there is a large pocket of land south of 08 that is within the Luton town boundary and is not part of Hertfordshire that would make a nice apron the size of the main apron.
This would be easier to get past the planning authorities and would not increase capacity at the airport but would allow the FBO's to grow their businesses which will be curtailed at some point when the demand for airline stands shrinks available parking for them which will start to happen from next year.
Oh and there is a large pocket of land south of 08 that is within the Luton town boundary and is not part of Hertfordshire that would make a nice apron the size of the main apron.
Last edited by LTNman; 23rd Jun 2015 at 09:14.
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100 million pounds investment
This is a very serious question!
The new 'leaseholder' of the airport has committed to the £100 million investment in the airport.
My thoughts are that the airport makes £100 million pound + profit a year?
Whilst I appreciate they have to pay LBC their share that still leaves a 'considerable' amount of profit?
I could be totally mistaken regarding profit levels.
But let's say the current 'leaseholder' makes approximately 70 million plus profit each year and whilst I appreciate they have to pay dividends to shareholders etc, I believe the new 'leaseholder' should commit to a minimum 300 million pounds investment over it's long lease period!
LTNman states room for expansion to the south side of the airfield to accommodate FBO's . I believe the east side can accommodate up to 20+ A321 sized aircraft stands with satellite building, and within the airfield boundaries the runway could be extended to 8000 feet minimum making the operation of 787's possible.
So my question is with 'real' investment could LTN grow to reach it's true potential or is it's progress held back by allowing a 3rd party to 'reap' the majority of it's profits?
If I am correct LTNman has knowledge of profits the airport makes?
The new 'leaseholder' of the airport has committed to the £100 million investment in the airport.
My thoughts are that the airport makes £100 million pound + profit a year?
Whilst I appreciate they have to pay LBC their share that still leaves a 'considerable' amount of profit?
I could be totally mistaken regarding profit levels.
But let's say the current 'leaseholder' makes approximately 70 million plus profit each year and whilst I appreciate they have to pay dividends to shareholders etc, I believe the new 'leaseholder' should commit to a minimum 300 million pounds investment over it's long lease period!
LTNman states room for expansion to the south side of the airfield to accommodate FBO's . I believe the east side can accommodate up to 20+ A321 sized aircraft stands with satellite building, and within the airfield boundaries the runway could be extended to 8000 feet minimum making the operation of 787's possible.
So my question is with 'real' investment could LTN grow to reach it's true potential or is it's progress held back by allowing a 3rd party to 'reap' the majority of it's profits?
If I am correct LTNman has knowledge of profits the airport makes?
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Turnover for the year ending 2013 was £122,289,000. Operating profit was £23,879,000 or just under 20% of turnover.
Turnover income was as follows:
£57,303,000 Traffic income
£51,007,000 Commercial income
£13,979,000 Tenant income
You have to remember that £100,000,000 will be a loan so it is the interest on the loan that has to be paid each year. Bit like a mortgage on a house.
Turnover income was as follows:
£57,303,000 Traffic income
£51,007,000 Commercial income
£13,979,000 Tenant income
You have to remember that £100,000,000 will be a loan so it is the interest on the loan that has to be paid each year. Bit like a mortgage on a house.
...However, the investment of £100m will improve the asset, which remains in the ownership of LBC.
One wonders whether, at the end of the lease, the freeholder will just assume the benefit of all the investment, paid for by the lessee, without making any payment.
Also, it is not surprising that no lessee will invest during the last 10-15 years of their lease, as they will have insufficient time to earn any return. Presumably this means that, unless the airport enters a period of long-term decline, the lease will always be renewed very early to permit additional investment.
One wonders whether, at the end of the lease, the freeholder will just assume the benefit of all the investment, paid for by the lessee, without making any payment.
Also, it is not surprising that no lessee will invest during the last 10-15 years of their lease, as they will have insufficient time to earn any return. Presumably this means that, unless the airport enters a period of long-term decline, the lease will always be renewed very early to permit additional investment.
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Well let's do a bit of (simplistic) maths shall we:
The airport made £24m operating profit on 10m passengers
Traffic will grow from 10m to 18m passengers - so pro rata we can expect an additional £19m operating profit
Take off extra Corporation tax - say £4m
Take off interest on £100m - say another £5m
This leaves £10m annual profit on an investment of £100m - or 10%
Is it worth the risk for 10% return? - given the looming lack of capacity in London - probably yes.
£300m investment would, however, likely require either a lot more tham 18m passengers or much higher prices to airlines in order to produce an acceptable return.
This ignores depreciation of course but also any increased profit margin from economies of scale (and many other factors) - but I did say it was simplistic.
The airport made £24m operating profit on 10m passengers
Traffic will grow from 10m to 18m passengers - so pro rata we can expect an additional £19m operating profit
Take off extra Corporation tax - say £4m
Take off interest on £100m - say another £5m
This leaves £10m annual profit on an investment of £100m - or 10%
Is it worth the risk for 10% return? - given the looming lack of capacity in London - probably yes.
£300m investment would, however, likely require either a lot more tham 18m passengers or much higher prices to airlines in order to produce an acceptable return.
This ignores depreciation of course but also any increased profit margin from economies of scale (and many other factors) - but I did say it was simplistic.
Last edited by Itchin McCrevis; 24th Jun 2015 at 21:23.
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BlueA330
Be careful what you wish for !
This happened at STN MAXjet and EOS were squeezed by the big boys
AA came to STN as soon as MAXjet and EOS went AA pulled out even though
Load factors were very good.
This happened at STN MAXjet and EOS were squeezed by the big boys
AA came to STN as soon as MAXjet and EOS went AA pulled out even though
Load factors were very good.
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I expect the runway/airfield and closer proximity to LHR than STN would be off putting for the major US carriers so I would think the chance of one of them launching LTN is slim to none. This is, however good news for La Compangie and for LTN maintaining a direct link to the US.
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Luton's restricted runway must give some level of protection from the big predators - they can't just throw in a standard 3 class widebody to spoil the party like they did at Stansted, they would have to either find something more bespoke or waste one of their shiny new 787's.
Personaly I think that is part of the reason La Compagnie chose Luton over LGW or STN.
Personaly I think that is part of the reason La Compagnie chose Luton over LGW or STN.
Appalling experiences recently travelling though the airport.....Check-in for a TOM Saturday early afternoon departure took over an hour with ludicrous queues stretching back almost half the length of the terminal.
On arrival back on Weds around 1830, total chaos in passport control with only four officers checking EU passports and the e-gates closed. It took around 40 mins to get through (but a party of three Japanese waltzed through in a couple of mins thanks to an empty non-EU queue!) Once out of the temp arrivals entrance we then had to negotiate around the queues for the National Express coaches!
On arrival back on Weds around 1830, total chaos in passport control with only four officers checking EU passports and the e-gates closed. It took around 40 mins to get through (but a party of three Japanese waltzed through in a couple of mins thanks to an empty non-EU queue!) Once out of the temp arrivals entrance we then had to negotiate around the queues for the National Express coaches!
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Automatic e-Passport Gates out of use
Published: 13 March 2015
From Sunday 15th March 2015 until further notice
Arriving passengers are advised that with effect from Sunday 15th March the automatic e-Passport gates will be out of use until further notice for upgrade works.
New and improved gates will be launched this summer.
London Luton Airport and Border Force apologise for any additional waiting time that this work may cause.
Think this has to do with the government rather than the airport but over 3 months is a long time for it to be down.
Published: 13 March 2015
From Sunday 15th March 2015 until further notice
Arriving passengers are advised that with effect from Sunday 15th March the automatic e-Passport gates will be out of use until further notice for upgrade works.
New and improved gates will be launched this summer.
London Luton Airport and Border Force apologise for any additional waiting time that this work may cause.
Think this has to do with the government rather than the airport but over 3 months is a long time for it to be down.
Similar experience to boeing_eng arriving back into Luton last Friday night. Parked on stand 8 and the queue for passport control reached all the way along the pier, down the stairs and onto the airside perimeter. Took nearly 90 minutes to get all the way through. I know the e-gates are closed for replacement but shouldn't the border force provide extra officers if they know it will cause delays?
Awful to experience but even worse for those visiting - not a good impression of Luton or the UK.
Awful to experience but even worse for those visiting - not a good impression of Luton or the UK.
Yes, an appalling situation! Even the officer checking my passport agreed its best to avoid the place at present! (I understand there will be 10 new e-gates which are scheduled to open around the middle of next month (but I won't hold my breath!)
Paxing All Over The World
planedrive
What - and spend MONEY? How reckless can you get? Don't you know that we're all in this recession together?
... shouldn't the border force provide extra officers if they know it will cause delays?