Chocks Away
16th Jul 2009, 07:39
I didn't want to thread drift the "VB Share Halt" type thread any further but thought it prudent to start another thread on some things mentioned on there, as there are some really stuffed-up views, way out of touch with reality and business forces (...though it is Pprune :}).
I'll start by completing the quote I used as this thread title. It is out of the July, Vol 4 edition of Low Cost & Regional Airline Business (http://www.airtransportpubs.com/lcab/index.php?title=lcab) Mag - Editorial:
"The Industry has gone wrong in the last 20-30 years. Airlines - those creating the value - are the weakest partners in the transport chain."- airBaltic's Bertolt Flick.
The Editorial goes on to mention that;
"It's a familiar mantra at industry conferences that everyone in the air transport chain makes healthy double-digit margins, from GDSs, airports and handlers to equipment suppliers and fuel companies. Most airlines in a good year are scraping 5 %"
So, User-Pays, some of you mentioned in the other thread???
Yeh, good when the going is good but has to be adjusted according to the times, for sheer survival and not remain at static high levels! I said in the thread on Mcquarie, don't bite the hands that feed you, Airports are static assets, airlines aren't! Take a look through Europe to see the co-operation at some of the flexible airports. No flexibility?... the airline goes elswhere!
So why are Aust & NZ Airports still charging airlines like wounded bulls, at a time when they also gain huge $$$ from their terminal shopping centres... Airlines should be charging THEM per passenger, for delivering constant streams of customers to their Airport Shopping Centres/Terminals, don't you think?
Off for a wine. :)
"Handing over"
I'll start by completing the quote I used as this thread title. It is out of the July, Vol 4 edition of Low Cost & Regional Airline Business (http://www.airtransportpubs.com/lcab/index.php?title=lcab) Mag - Editorial:
"The Industry has gone wrong in the last 20-30 years. Airlines - those creating the value - are the weakest partners in the transport chain."- airBaltic's Bertolt Flick.
The Editorial goes on to mention that;
"It's a familiar mantra at industry conferences that everyone in the air transport chain makes healthy double-digit margins, from GDSs, airports and handlers to equipment suppliers and fuel companies. Most airlines in a good year are scraping 5 %"
So, User-Pays, some of you mentioned in the other thread???
Yeh, good when the going is good but has to be adjusted according to the times, for sheer survival and not remain at static high levels! I said in the thread on Mcquarie, don't bite the hands that feed you, Airports are static assets, airlines aren't! Take a look through Europe to see the co-operation at some of the flexible airports. No flexibility?... the airline goes elswhere!
So why are Aust & NZ Airports still charging airlines like wounded bulls, at a time when they also gain huge $$$ from their terminal shopping centres... Airlines should be charging THEM per passenger, for delivering constant streams of customers to their Airport Shopping Centres/Terminals, don't you think?
Off for a wine. :)
"Handing over"