AirportPlanner1..
Yes I can see the picture you paint but is that really really where Stobart want to be?.
Not being at all disrespectful but just saying in any business term that is really a "nothing" situation meaning it`s neither one thing or the other.
Whilst enthusiasts for the airport would grab it,I always understood that any successful business needs to grow & not plateau.
That scenario is way too comfortable & then itself open to those particular market vagaries.
Any business not expanding is open itself to acquisition....BUT.....maybe that idea is still a player at HQ.
As I stated anybody trying to see the future requires the original motives some of which are not now in play.

Southside you're right to an extent but a lot businesses including airports do plateau either though constraints (SEN probably fits well into that category) or because their market has a natural limit. The issue for Stobart is whether SEN's current output and actual potential is profitable, or better still provides an acceptable return on investment. Of course Stobart as an airport operator are small, it might be that their profit in SEN comes from its sales value. Or that they can grow as a business and benefit from economies of scale and relationships with airlines across a portfolio of airports.

Of course passengers is just one revenue stream, bizjets and freight for example might be a source of growth as they get squeezed out elsewhere.

@ssb - I think part of problem right now are really two things:

(a) what were the original motives of Stobart (before Easyjet arrived on the scene)

(b) it isn't at all clear what the strategy has now become for SEN^

^2017 - deliver passenger growth to achieve 2.5m passengers at £8pp EBITDA. By 2022 achieve 5m+ passenger growth at £10 pp EBITDA.

However, those numbers are the 'what' within their stated strategy detailed in the annual report but what I am specifically interested in understanding is the 'how' and in some detail so it can be determined if the approaches adopted will deliver, in other words, shareholder value.

Dividend yield is short term but of real critical importance is achieving plan. I'm finding it difficult to see 'how' plan will be delivered. There seems to be a slowing of progress.

mik3bravo

This statement from Andrew Tinkler in December 2008 gives a clue to their original motives.

Stobart Chief Executive Andrew Tinkler said: ”At one stroke we have found our Southern base and greatly enhanced our position as a leading point-to-point service provider for customers in the UK and Europe who require fast and efficient services by air as part of their logistics solutions.

“We have already started talking to a number of airlines to investigate new passenger services.”

I get the point-to-point logistics air freight revenue generation.

What seems considerably more challenging for Stobart, is these 'talks' with 'other airlines' which appear very slow in delivering substance of commercial value. It is specifically this point where investors are fixed when monitoring the plan for the aviation division of the group. If for example cost savings are not sufficient to attract new airlines to operate consistently from SEN then teaser commercial incentives are necessary to sweeten deals. As much as SEN want to attract new airlines it simply will not advance at a pace to ensure plan is delivered if there isn't a recalibration of tactics to achieve the plan.

Valid responses...
AirportPlanner1..Exactly as you say regarding "profitability now & in the future & an acceptable return on investment",some which is being spun thru other segments of the empire inc STK obviously & with limited clarity therefore.
mik3bravo.....
Item(b)..Agreed.."It isn`t at all clear what the strategy has now become for SEN"..
This being the reason for all the diverse & endless postings here.
From the current perspective it does appear SEN has retreated ? or is establishing a very local market in complete divergence with the aim of being a London Gateway & the brow creasing comments from the Airport CEO concerning SEN & the "London" market. DC3 Dave....
Yes I had forgotten their original statements concerning "logistic solutions by air"...That appeared to go very quickly & quietly.
Gone or backburner?.
It took many years to get out of the ground at Carlisle with warehousing for surface logistics due planning but I have witnessed the result/build at one end of the airfield.

Ho hum...
Some reasoned thought there....but!!!..
Conclusion?..
Stobart are playing the smartest game ever...OR
Stobart have been worthily opportunistic in aviation ventures but in terms of management for aviation as time goes by are pretty out of their depth.
White Knight?..
There has been a Knight literally hovering over BOH last week..Oooops that`s a funny BTW & no way starting a rumour.
It does appear tho that UK regional airports are coalescing into a single entrepreneurial
real estate empire.

https://www.caa.co.uk/Data-and-analy...-airport-data/

Am I missing something here, looking through the data and SEN pax CYTD numbers not apparent?

To recap, 2017 full year pax target stated in the business plan was to deliver 2.5m pax in 2017.

We are in month 11 now, I want to see the hard data on volume of pax CYTD.

From https://www.caa.co.uk/Data-and-analy...-data-2017-09/

Cheers,fm:ok:

Not too exciting but look, another award!

London Southend Airport wins W17/18 public vote Part I

Wizz have stated that they want the Monarch slots at both Gatwick and Luton. If they had any plans for Southend, which to be honest I have always doubted, then I would think they have been put into the long grass.

SEN Observer......I`m certain,well hoping anyway your re-posting is tongue in cheek...Please tell the forum it is as your sense of humour cannot be gauged exactly.

ss bobby...a big fuss about nothing Definitely tongue in cheek. Thought it might lighten things up a bit. Didn't expect to be questioned on it!!

SEN Observer....No big fuss at all....Great stuff,tongue in cheek...I had already seen the article on site..My only problem TBH is you could have lightened the forum absolutely by making your comments attached properly funny..
SEN beats Mr Kipling at it`s own game...sorry not too funny that one,there must be good ones tho....Oh well...

This is a SENsational award in an international competition so stop baking the rise, please. London Southend. More bake off than takeoff.

You will also note SEN have won THE BEST WATER ARCH FROM A FIRE TRUCK award. A pretty good effort considering the lack of practice............

"Stobart plots expansion into FBO market"

Re-hashing old news for SEN I think, though are the expansion noises new?

https://www.flightglobal.com/news/ar...market-442956/

Well you make me laugh....excellent post DC3 Dave....v funny..

Flybe radio adverts blitzing prime morning radio in Ireland advertising low cost flights to London Southend. Currently running the adverts on the Newstalk FM Breakfast show.

I need to check the Martin & Su morning slot on Heart. Hopefully they are blasting the airwaves with SEN new service's. Perhaps a competition for free tickets to some of the new destinations will be good.

I would have thought that of all the markets to crack a successful FBO would be the easiest.

But again up against some of the cutest slickest main operators,facilities & networking.

Have you seen this LTNman: £1,000 for 24 hrs parking compared to (they claim) £7,000 at LTN.

Stobart Jet Centre

I've seen a pic recently (yours I think) of biz jets at LTN so crowded together they're in danger of breeding. Think there's a little more room at SEN at the moment.

Obviously price then is of NO consequence for the BizAv owners & operators.It goes with the ownership territory.
You may care to regard charges at Palm Springs say.
It would be perhaps a better plan & result for SEN & for Stobart to invite in a recognized & well known FBO to run the facility with their networking as all other normal airports do rather than again keep it in house.
It appears with Stobart all has to branded Stobart...that`s either genius or............
Perhaps Stobart crisps & cola in the terminal to look forward to.

I absolutely disagree that price is of no consequence. The cost of these running these aircraft is often tightly and professionally managed. If I may misquote a line from an old sitcom, "I didn't get where I am today without knowing how to run a tight ship - sorry biz jet."

I think this enterprise needs to be kept in perspective. They average 3 biz jets per day. They're looking to double that within a year. Seems reasonable to me.

I understand the reservation around in-housing everything at Stobart, yes it is either genius, or commercial naivety.

It's genius if Stobart deliver product & service better than the rest of the pack. There are 'rumours' around why Cityjet dumped progressing talks with SEN, I hope Stobart are being realistic.

So far they are behind stated corporate plan for SEN carrying 2.5m passengers in 2017. Key is having realistic and achievable targets, let's hope the biz jet ops becomes a big success for them, I wish them well but I too am somewhat sceptical given performance and poor execution elsewhere in their strategy. Focus is needed on getting passenger numbers up, plus getting another major carrier or two operating sustainable services into SEN, I've concerns the biz jet strand may distract and dilute getting back to the basics and core strategic objective.

DC3 Dave..
mmmm...Regarding price have you been around some of the FBO operations say in the US?.Costs come with the ownership territory.
Regarding pricing of destination airfields & associated FBO`s the company wants to be where they want to be...for them the plane is a highly efficient tool & they do not invest 10`s of millions of dollars to penny pinch & land the CEO where the only thought process is to save a buck or two.Mark that that is a worldwide remark & not regarding SEN.
Yes,many companies have their assets professionally managed now & this has been the main process of cost control by being able to eliminate the costs of running their own flight departments....keeps the shareholders happier.
Which follows on from my previous..as as you say these aircraft are often tightly and professionally managed why not invite in a recognised FBO who network with these guys worldwide.
I thought that Stobart in a statement(here we go again) regard 22000 movements per year over SEN as achievable early next decade.
BTW I have been thinking as I have been typing but no I do not recall "CJ" in The Rise & Fall of R....... P..... ever having the use of a BizJet :))

Southside, your comment about valuing location and convenience is albsolutely correct but SEN is one of the better options for Canary Wharf and I would have thought that is a market Stobart would be right to seek to exploit.

Correct with the proximity of Canary Wharf.LCY itself & STN in the market.
My main point/s were my view of costs & pricing generally concerning many BizAv operators & not to continue labouring it,why do Stobart have to have all " in house"?..
Genius...Controlling....or.......?

During busy periods Luton can have 3 biz jet movements in 10 minutes. If Stobart’s cannot add an extra 3 movements in 24 hours then they are incompetent.

Luton is shut overnight for the next few weeks so Southend should pick up some business.

If there are such rumours doing the rounds I haven't come across them but I'm pretty sure it was Stobart who withdrew from the negotiations not the other way around.

As far as the new SEN FBO's ability to attract serious amounts of new business is concerned I must admit that I'm sceptical as to how much can be achieved. Name recognition among your target audience is required and Stobart don't have that unfortunately. A doubling of current activity might well be achievable but that wouldn't be much to shout about. Possibly the temporary closure of Northolt in Spring 2018, rumoured to be for several months, might attract some of their 12,000 business movements per annum on a temporary basis at least.

It has also got to beat geographical thing. if you are doing business in the very North of London and in the Bedford, Milton Keynes area, not a lot of point operating into Southend. Also from people who used to work for a well known FBO at Luton said that many 'stars' like to stop in the West End, so straight down the M1 and A5 to 'downtown London Englandland'!

There's some criticism of Stobart for not seeking a known FBO provider. It should be remembered they did advertise in the trade press a while back seeking 'Expressions of interest' from established FBO companies. No idea if they had serious discussions. If no-one came forward (come back when you have some aircraft for us perhaps), I wouldn't be too critical if they decided to do their own thing.

As Expressflight has pointed out it was Stobart who pulled the plug on the Cityjet deal (unless there is another version of events out there) much to the chagrin of the later. I sure it was a multi-faceted decision, but I believe the SSJ was a significant factor.

Why would Stobart’s pull a deal with CityJet when it is already rumoured that Easyjet pay next to nothing in fees? Was it actually anything to do with fees? What has the SSJ got to do with anything? Why would Stobart turn down passengers? All seems very strange to me.

Oh the icing on the cake for the airport is that there will be no train service to London for the 10 days over Christmas. This is a bit of a bummer but hopefully this will reduce the weekend closures.

I know folk here get frustrated at what appears to be a slow uptake of new routes and airlines out of Southend but their midweek departure board is looking much more healthy than it has done over the last couple of years.

I don't know exactly why Stobart decided against concluding the deal with Cityjet but SSJ's current landing distance requirement of 1,630m (dry) may have had something to do with it. Another possibility was that maybe they thought they could set up much the same operation on their own. Think Warwick Brady.

LTNman This was a merger / takeover, nothing to do with fees. City Jet's future involved replacing RJ85's with SSJ's. The SSJ may as well be an A380 or a space shuttle. It can't land at SEN in wet conditions (or couldn't at the time - mods underway now?).

There is no way I'm going to publish on here the rumour mill comments on the Cityjet situation circulating amongst folks close to the matter. I'll stop there.

To get back onto reality for a second, Stobart stated they will deliver 2.5m passengers this calendar year. It's in the annual reports. Where is this at right now?

My point being there seems to be a judgement problem with the leadership team setting unrealistic fantasy numbers without completely considering the blockers to achieving strategy. In other words that strategy is not being robustly challenged and perhaps its high time the shareholders started getting more direct towards Stobart in delivering on planned strategy.

Oh, go on!:E

I thought the CityJet/Stobart thing was more to do with Aer Lingus Regional etc than SEN.

This isn't very well advertised at the moment either, I've seen a few already-booked pax confused by it. Perhaps something like a shuttle bus to Southend Central would help somewhat.

Doesn't help matters they change things at short notice, I'm on my way to catch a train on my branch of the same line having been prepared until this morning to be driving to Upminster to hop on the C2C. A few weeks back it was the other way round - no trains after they said there would be.

Crossrail or not, the weekend and holiday closures over the last few years (and it is a few years now) on the East Anglia Mainline are unacceptable.

There's nothing new about the line to Liverpool St being part shut Xmas week. Buses operate from Billericay. Best not to mention the 'T' word, though.

Welcome Dan. Are you one of the Air family?