Southend-3
I understand they have a long lease on the Airport, rather than operating it as a franchise. But I imagine the practicalities are similar. If it's a viable, profitable business then for the right price a purchaser may be interested in acquiring it. So it would have a tangible value as a going concern. If the business is perpetually loss making but there is no significant asset value then unless you can walk away from the lease I guess the best you can hope for is to pay someone to take it off your hands.....
As I understand it, the "material risk" relates to uncertainty over the disposal of the Biomass Division. Once sold, Esken's cash position is much healthier, but there is no certainty over the timing....
No surprises there. To cut its loses further they would need to close the terminal and boot Easyjet out. I can understand why this would be painful but the easyjet flights at Southend don’t have the volumes needed to turn a profit. Come this winter it will only get worse. With Easyjet slowly ramping up flights it will be a long time before Southend will see a profit and Esken hasn’t got the resources to last out. Also despite the claims of new airlines and routes the cupboard seems to be bare..
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I think I read a long time ago that the turning point from loss to profit was 1.25m passengers a year. They still have a long way to go but as Esken has found out you can spend the money freely and get little return. It might be a case of selling the lease for £1 and walking away could be the best option. So who owns the infrastructure that Stobart built? The Council, as the owner of the land, or Esken?
If Esken fails maybe the airport ends up with no debts so can start again with a new debt free lease and with all the infrastructure in place or maybe the infrastructure has value that can be sold for the duration of the existing lease?
If Esken fails maybe the airport ends up with no debts so can start again with a new debt free lease and with all the infrastructure in place or maybe the infrastructure has value that can be sold for the duration of the existing lease?
Last edited by LTNman; 21st Jun 2023 at 15:41.
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Interesting quirk of Southend business model vs. similar peers. Because they have the train terminal right next to the terminal, a higher proportion of users choose to take the train - great from green perspective, but dramatically reduces car parking revenues which for some is the primary income stream for a typical regional airport, aside from property rentals - if they have property to rent that is! Hardly anyone makes money from aviation-related income.
I thought that SEN received part of the train ticket price, which would go some way towards compensating for the reduced car parking revenue. After all they do own the station.
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My understanding was that they owned pretty much all the infrastructure around the airport including the station and hotel so they must be making something from that to alleviate the reliance on car parking.
Which means they were also getting 90% of the ticket price of all the commuters from the local area that started using the station too instead of the pre existing stops. The operator did kick off about this not sure what the outcome was
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EZY have released early S 24 flights. Looks like summer starts along the same lines as this year, hopefully with a new route or two to follow in the coming weeks.
One disappointment. CDG does not appear to continue into summer as anticipated at this stage. Particular shame with the Paris Olympics in 2024.
One disappointment. CDG does not appear to continue into summer as anticipated at this stage. Particular shame with the Paris Olympics in 2024.
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One disappointment. CDG does not appear to continue into summer as anticipated at this stage. Particular shame with the Paris Olympics in 2024.
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At a time when the airport needs every friend it can get this expansion of the perimeter fence will probably alienate the spotter/enthusiast community. I remember way back when the airport's original expansion plans were produced that there was a dedicated building for spotters included in the plans, replacing the old "Waving Off Terrace" on the terminal roof. That didn't survive long once the plans were approved.......