Airlines, Airports & Routes Topics about airports, routes and airline business.

Southend-2

Old 14th Jun 2019, 11:05
  #3181 (permalink)  
 
Join Date: Nov 2014
Location: London
Posts: 329
Surely the focus should be on securing the long-term sustainability of easyJet and Ryanair and that can only come by pushing as many pax as possible through whichever means necessary on to the planes?!

They may have a busy train station but not everyone can afford the train fares so they're missing out on a key segment if they do this.
Sharklet_321 is offline  
Old 14th Jun 2019, 11:29
  #3182 (permalink)  
 
Join Date: Aug 2014
Location: East London
Age: 37
Posts: 1,088
Originally Posted by Sharklet_321 View Post
They may have a busy train station but not everyone can afford the train fares so they're missing out on a key segment if they do this.
With respect if you canít afford £16-£30 for a train fare youíve probably picked the wrong destination if visiting from abroad and if you live here I imagine you should be spending your money more wisely than on a few days away.
AirportPlanner1 is offline  
Old 14th Jun 2019, 11:40
  #3183 (permalink)  
 
Join Date: Apr 2012
Location: ESSEX
Posts: 254
I imagine a new bus service will be along soon. Run by Stobart no doubt
SARF is offline  
Old 15th Jun 2019, 07:44
  #3184 (permalink)  
 
Join Date: Apr 2008
Location: Southend
Posts: 51
Cheaper to buy a ticket to Southend Victoria
and get off at the Airport🤪
HeliAl is offline  
Old 15th Jun 2019, 17:31
  #3185 (permalink)  
 
Join Date: May 2014
Location: Westcliff-on-Sea
Age: 74
Posts: 287
Originally Posted by HeliAl View Post
Cheaper to buy a ticket to Southend Victoria
and get off at the Airport🤪
May be cheaper but no guarantee that the ticket will be accepted at the airport station. I remember some while back that a ticket from London to Brighton was declared invalid when the user tried to get off one station before Brighton and was charged a penalty fare! Careful using a ticket to any station other than the named destination as unfair as it may seem.
SEN Observer is offline  
Old 16th Jun 2019, 07:14
  #3186 (permalink)  
 
Join Date: Jun 2009
Location: UK
Posts: 448
Buy Liverpool St to Southend Victoria and a Southend Vicoria to Southend Airport ticketfor £9.50. Still about 50% cheaper than the Liverpool Street to Southend Airport ticket
asdf1234 is offline  
Old 17th Jun 2019, 09:55
  #3187 (permalink)  
 
Join Date: Apr 2016
Location: Essex
Posts: 916
This truly takes my breath away.

https://www.thisismoney.co.uk/money/...bart-boss.html
DC3 Dave is offline  
Old 17th Jun 2019, 10:07
  #3188 (permalink)  
 
Join Date: Apr 2012
Location: ESSEX
Posts: 254
2.1 bill for the airport and no shareholder Is going to care
SARF is offline  
Old 17th Jun 2019, 10:15
  #3189 (permalink)  
 
Join Date: Sep 2008
Location: Blighty
Posts: 3,786
£2.1 bn is the value of a very large airport. Mr Brady had better get moving if he want SEN to be worth that much during his tenure as CEO. It's unlikely he will have 10 or more years in the role so time is not unlimited
davidjohnson6 is offline  
Old 17th Jun 2019, 10:25
  #3190 (permalink)  
 
Join Date: Jan 2014
Location: Daws Heath Essex
Posts: 427
Originally Posted by davidjohnson6 View Post
£2.1 bn is the value of a very large airport. Mr Brady had better get moving if he want SEN to be worth that much during his tenure as CEO. It's unlikely he will have 10 or more years in the role so time is not unlimited
My facts may be suspect, but I think Southend Council sold SEN to RAL for £1, RAL sold the airport to Stobarts for £21m once planning approval for the runway extension and new terminal was granted and now the figure of £2.1bn is being bandied about. I wish my pension fund would grow as fast, however the old saying "if it sounds too good to be true then it probably is too good to be true " may apply here!!
Planespeaking is offline  
Old 17th Jun 2019, 11:52
  #3191 (permalink)  
 
Join Date: Jun 2009
Location: UK
Posts: 448
Originally Posted by DC3 Dave View Post
There is lots in the Annual R&A that takes the breath away. How about the fact that the current terminal has a capacity of 5m pax per annum? It is currently only 30% utilized according to the R&A. If ever they reach 5m pax that will be one very congested departures lounge. Or how about the airport is developing capacity to handle 10m pax per annum? Where do they find the land for that expansion?
asdf1234 is offline  
Old 17th Jun 2019, 16:50
  #3192 (permalink)  
 
Join Date: Jul 2002
Location: In the sticks
Posts: 7,290
Look back far enough and I have always said Stobart would sell the airport. London City was sold for £2bn in 2016 so the question to be asked does Southend have the same earnings potential as London City. This also explains nicely why Stobart talks up the airport and fantasises about its potential capacity.
LTNman is online now  
Old 17th Jun 2019, 17:29
  #3193 (permalink)  
 
Join Date: Sep 2005
Location: Sydney
Posts: 643
I would say LCY has much higher earning potential. Why? Because the airport is in the business end of the market so aviation fees and charges will be high which can be partly off-set/absorbed by higher airfares.

SEN cannot be close to GBP2bn resting on the back of a Ryanair base which could (and will) pull the plug at ANY moment if fees/charges don't remain FREE or as close to FREE as possible. If SEN don't have land to earn money from car-parking then I can't see how they can sustain such low fees/charges for airlines using the airport.
shamrock7seal is offline  
Old 17th Jun 2019, 17:40
  #3194 (permalink)  
 
Join Date: Apr 2012
Location: ESSEX
Posts: 254
1 billion would be enough
SARF is offline  
Old 17th Jun 2019, 19:17
  #3195 (permalink)  
 
Join Date: Nov 2008
Location: Darkest Surrey
Posts: 6,308
Originally Posted by Expressflight View Post
The early morning train departs LST at 04:30 (04:35 some days) arriving SIA 05:17 (05:29 some days) calling at Stratford only. No Sunday morning train at present due to engineering works. The late evening train departs SIA at 23:59 arriving LST 00:55 calling at Shenfield and Stratford only. This service operates 7 days a week.
Crikey must have got the service on its first day then.
racedo is offline  
Old 17th Jun 2019, 20:20
  #3196 (permalink)  
 
Join Date: Jun 2009
Location: UK
Posts: 448
Originally Posted by SARF View Post
1 billion would be enough
A multiplier of around 25 x EBITDA is reasonable for airport sales. The current "underlying" EBITDA at Southend is circa £3 per pax (with "underlying" not easy to define but to get to the true figure you need to strip out the route marketing and contract set-up costs. I think the true EBITDA per pax is negative but let's assume £1). So airport could sell for circa £25m. What they need to do is get the per pax profit up to something in the £5 - £10 range. At the moment the target is £8 per pax profit and a target 5m pax. So £40m EBITDA x 25 = £1 billion sales price for the airport. The difficulty in growing the per pax profit is that the estate is constrained. Where do you put the car parks, traditionally a large proportion of any airport's income? How do you introduce more concessions airside when the airport building expansion is limited by the location of the ATC tower? £8 per pax when your bread and butter passenger is a cost conscious Ryanair and Easy customer will be hard to achieve. 5m pax per annum even more difficult.
asdf1234 is offline  
Old 18th Jun 2019, 06:15
  #3197 (permalink)  
 
Join Date: Jul 2002
Location: In the sticks
Posts: 7,290
Don’t think this is far fetched but what are the prospects of Stobart buying the golf course, kicking out the golfers and building a second terminal just south of Rockford Station and using that station as the station for T2? Also west of the golf course and north of the airport are farmers fields for an even bigger airport.

If Luton is planning to build a second terminal on one of the towns biggest parks, which has county wildlife status, nothing is safe these days.
LTNman is online now  
Old 18th Jun 2019, 07:15
  #3198 (permalink)  
 
Join Date: Jun 2009
Location: UK
Posts: 448
Originally Posted by asdf1234 View Post
A multiplier of around 25 x EBITDA is reasonable for airport sales. The current "underlying" EBITDA at Southend is circa £3 per pax (with "underlying" not easy to define but to get to the true figure you need to strip out the route marketing and contract set-up costs. I think the true EBITDA per pax is negative but let's assume £1). So airport could sell for circa £25m. What they need to do is get the per pax profit up to something in the £5 - £10 range. At the moment the target is £8 per pax profit and a target 5m pax. So £40m EBITDA x 25 = £1 billion sales price for the airport. The difficulty in growing the per pax profit is that the estate is constrained. Where do you put the car parks, traditionally a large proportion of any airport's income? How do you introduce more concessions airside when the airport building expansion is limited by the location of the ATC tower? £8 per pax when your bread and butter passenger is a cost conscious Ryanair and Easy customer will be hard to achieve. 5m pax per annum even more difficult.
After further delving into the annual report and accounts the EBITDA profit per passenger for the aviation division was 19 pence per passenger. I think the EBITDA profit per passenger for Southend Airport (and not the aviation division as a whole) is actually negative (i.e. it cost Stobart a certain amount for every passenger that went through the terminal) but the exact figure is not discoverable in the accounts as I cannot find the profit made from the handling contract at Stansted and the profit from the management contract at DTV. At 19p the EBITDA needs to grow by over 4000% to reach the target of £8 per pax.


asdf1234 is offline  
Old 18th Jun 2019, 07:18
  #3199 (permalink)  
 
Join Date: Apr 2016
Location: Essex
Posts: 916
I agree that nothing is safe anymore, but I feel it's the Inglenook fireplace in the Stobart Jet Centre that would come under threat if expansion to over 5m pax p.a. ever became a realistic prospect rather than just big talk. Relocating the Jet Centre elsewhere would surely make more sense.

Don't forget, plans are already approved for extensions either end of the existing terminal, and they will help the current situation. It is possible that the work required could be completed for a sum less than Mr Brady's proposed bonus.
DC3 Dave is offline  
Old 18th Jun 2019, 07:19
  #3200 (permalink)  
 
Join Date: Apr 2003
Location: Northumberland
Posts: 4,766
Will there be anything for the DTVA contract - only been going a couple of months?

Also, what do Stobart actually own at SEN - isn't the airport leased from the council?
SWBKCB is online now  

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.