Southend-2
Join Date: Nov 2014
Location: London
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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.
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.
Join Date: Aug 2014
Location: Outer London
Age: 43
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With respect if you can’t afford £16-£30 for a train fare you’ve 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.
Join Date: May 2014
Location: Westcliff-on-Sea
Age: 79
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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.
Join Date: Apr 2016
Location: Essex
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£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
Join Date: Jan 2014
Location: Daws Heath Essex
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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!!
Join Date: Jun 2009
Location: UK
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Join Date: Jul 2002
Location: In the sticks
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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.
Join Date: Sep 2005
Location: Sydney
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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.
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.
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.
Join Date: Jun 2009
Location: UK
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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.
Join Date: Jul 2002
Location: In the sticks
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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.
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.
Join Date: Jun 2009
Location: UK
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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.
Join Date: Apr 2016
Location: Essex
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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.
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.
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?
Also, what do Stobart actually own at SEN - isn't the airport leased from the council?
