"...gone wrong..."
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"The Industry has gone wrong..."
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 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 $$$ from their terminal shopping centres... Airlines should be charging THEM per passenger, for delivering constant streams of customers to their Airport Shopping Centres/Terminals, don't you think?
Off for a wine.
"Handing over"
).I'll start by completing the quote I used as this thread title. It is out of the July, Vol 4 edition of Low Cost & Regional Airline Business Mag - Editorial:
"The Industry has gone wrong in the last 20-30 years. Airlines - those creating the value - are the weakest partners in the transport chain."- airBaltic's Bertolt Flick.
The Editorial goes on to mention that;
"It's a familiar mantra at industry conferences that everyone in the air transport chain makes healthy double-digit margins, from GDSs, airports and handlers to equipment suppliers and fuel companies. Most airlines in a good year are scraping 5 %"
So, User-Pays, some of you mentioned in the other thread???
Yeh, good when the going is good but has to be adjusted according to the times, for sheer survival and not remain at static high levels! I said in the thread on Mcquarie, don't bite the hands that feed you, Airports are static assets, airlines aren't! Take a look through Europe to see the co-operation at some of the flexible airports. No flexibility?... the airline goes elswhere!
So why are Aust & NZ Airports still charging airlines like wounded bulls, at a time when they also gain huge $$$ 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"
Last edited by Chocks Away; 17th Jul 2009 at 02:15.
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Couldn't agree more - Auckland Airport needs a rail connection (what airport in the civilised world doesn't) , but what chance when AIAL will not support the idea because they are creaming the dinero big time from all the car parking charges they collect. 
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The trouble is in Oz and NZ, there is no place to go elsewhere!
Fair enough, compared with other countries.
How about Richmond, Bankstown, Archerfield, Avalon, Whenuapai, MKT & Batchelor, the list goes on, it's just politicians (taking backhanders) may not want it.
Well, WE vote them in to serve US, not visa-versa which many seem to think and monopolies such as Airports are extremely bad for the consumer (read: everyone except "the" monopoly)!
You've got to admit, Bertolt Flick from airBaltic was dead right.
Fair enough, compared with other countries.
How about Richmond, Bankstown, Archerfield, Avalon, Whenuapai, MKT & Batchelor
, the list goes on, it's just politicians (taking backhanders) may not want it. Well, WE vote them in to serve US, not visa-versa which many seem to think and monopolies such as Airports are extremely bad for the consumer (read: everyone except "the" monopoly)!
You've got to admit, Bertolt Flick from airBaltic was dead right.
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Interesting point made about user-pays arrangements.
Love them or hate them, Easyjet a few years back were re-examining their business model and decided that instead of paying someone else to provide on board catering and then that business also walking off with the lion's share of on-board takings, Easyjet put the arrangement to tender and actually now charge the catering provider for the privelege of selling goods on an Easyjet flight. It's actually a very simple concept but it makes a whole lot of sense, especially for a LCC/LFC.
Love them or hate them, Easyjet a few years back were re-examining their business model and decided that instead of paying someone else to provide on board catering and then that business also walking off with the lion's share of on-board takings, Easyjet put the arrangement to tender and actually now charge the catering provider for the privelege of selling goods on an Easyjet flight. It's actually a very simple concept but it makes a whole lot of sense, especially for a LCC/LFC.
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Emkaytee
....Darwin's other airport. Express troop carrier link to Casuarina, Cullen Bay and connecting flights to Croker Island Resort.
Buy shares now, while they are still affordable.
....Darwin's other airport. Express troop carrier link to Casuarina, Cullen Bay and connecting flights to Croker Island Resort.
Buy shares now, while they are still affordable.
