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Realistbear

Heathrow Hike Landing Charges 23.5% --inflation And All That

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http://uk.news.yahoo.com/rtrs/20080311/tuk...ts-fa6b408.html

By Mark Potter and Jane Barrett
Reuters
- 42 minutes ago
LONDON/MADRID (Reuters) - London's crowded Heathrow airport will be allowed to raise airline charges by a bigger-than-expected
23.5 percent
, giving a boost to the airport's indebted owner but sparking fury among its users.
Shares in Spanish construction group Ferrovial, which bought Heathrow owner BAA in a 10 billion pound deal in 2006, leapt as much as 8.8 percent after BAA said on Tuesday the new charges should help it to complete a much-delayed refinancing of its debts by the end of June.

Good for BAA shares at least.

Seems like evryone is getting on the bandwagon and hiking costs by enormous amounts. Petrol up 20%, British Gas up 40%, Food up 15%, air fares soon to go up by 10% or more.

It is making Brown's 2.1% rate of inflation look more and more ridiculous as each day passes. I wonder if U-turn Ali will boast tomorrow that his boss has presided over the lowest inflation in the world recently?

Edited by Realistbear

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So highly indebted company demands increase in income. Will the shortly be followed by highly indebted consumers demand increase in income ?

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So highly indebted company demands increase in income. Will the shortly be followed by highly indebted consumers demand increase in income ?

That's strange, I thought private equity buyouts brought in genius-level management that could magically deliver big efficiency improvements to justify their fantastic wages and bonuses, so charges would go down, if anything?

Or were they just taking advantage of amazingly lax credit and tax rules to enrich themselves knowing that BAA has an effective monopoly?

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a friend of mine bought a laptop last week for £270

its a very nice one, from dell, inc delivery and 1 year warrenty

dam this inflation!!!!

inflation is a GENERAL measure. there are people (the poor) who have 10% or more inflation.

there are those that have DEFLATION (upper middle class)

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That's strange, I thought private equity buyouts brought in genius-level management that could magically deliver big efficiency improvements to justify their fantastic wages and bonuses, so charges would go down, if anything?

Or were they just taking advantage of amazingly lax credit and tax rules to enrich themselves knowing that BAA has an effective monopoly?

:lol: I wonder.

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Or were they just taking advantage of amazingly lax credit and tax rules to enrich themselves knowing that BAA has an effective monopoly?

You're almost right. But the only reason BAA matters in the strategy is that if it were instead "Shonky Joe's Deli", they might have difficulty raising the debt from (ie, fleecing) the investors. Whether or not the "beneficiary" (ie, BAA) in the deal winds up saddled with an unworkable debt in the process is neither here nor there - the central premise, is transferring a large base of greater-fools' savings into a relatively small number of pockets - who's owners will carry no liability at all forward once the deal completes.

Amazing stuff. Someone should work out how to turn it into an assembly line process while the good times roll. They could even call it "The Fee Factory" - that's catchy.

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Yet another nail in BAA's and BA's coffins. No-one needs to use Heathrow or Gatwick, even those who live relatively close to it. For my 7-10 long-haul trips a year, I fly Teesside-Amsterdam and thence onto an intercontinental flight. A friend in Surrey drives to Bristol and then flies to Paris and across the pond. Despite living only 20 miles from Heathrow, the unreliability of BA, general shiteness of the airport, constant delays, lost luggage etc., and the cheaper air tickets from and parking at Bristol makes the 90-mile drive a no-brainer.

All this will do is strengthen the regional airports and enable KLM, Air France, SAS and Lufthansa to capture more of the business travel market at BA's expense. It's starting to look like a suicidally bad move for BA, putting all their eggs in the LHR T5 basket.

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I'm not so sure Ayatollah.

BAA airports account for such a vast slice of the UK's aviation capacity that it is difficult to see the monopoly being challenged.

For example, out of a total of around 200 million passengers per annum. Heathrow alone accounts for 70 million and this is set to rise to 80+ million when T5 comes fully on-line.

As to BA, I cant for the life of me figure out why anyone flies with them anymore. Some kind of masochism perhaps? Maybe people like having their bags lost and their flights cancelled? I dunno.

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That's strange, I thought private equity buyouts brought in genius-level management that could magically deliver big efficiency improvements to justify their fantastic wages and bonuses, so charges would go down, if anything?

Or were they just taking advantage of amazingly lax credit and tax rules to enrich themselves knowing that BAA has an effective monopoly?

To uncover the real mystery behind Ferrovial's take over of BAA, re-arrange the following words:

stripping asset

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I work for BA and I can assure you that comercial aviation is a complete basket case. The only reason many companies survive is because of the huge subsidies. BA is in a difficult position as it is afforded no protection by our inept Government.

T5 is a sticking plaster on the biggest sore on the planet. Heathrow is too small and in the wrong place. We also have inept security and bad management in the form of the BAA, which is essentially bankrupt. They have just sold the World Duty Free shops to some Italian company but that won't stop them failing.

As for who to fly with, well you all have a choice, but BA is my recommendation if you want to get there safely.

Inflation, what inflation, my council tax bill has just come in, up 4.6% on last year. Cn't live on lap tops, sorry.

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I work for BA and I can assure you that comercial aviation is a complete basket case. The only reason many companies survive is because of the huge subsidies. BA is in a difficult position as it is afforded no protection by our inept Government.

I remember hearing that taken as a whole, the entire air industry has yet to turn a profit..

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I work for BA and I can assure you that comercial aviation is a complete basket case. The only reason many companies survive is because of the huge subsidies. BA is in a difficult position as it is afforded no protection by our inept Government.

T5 is a sticking plaster on the biggest sore on the planet. Heathrow is too small and in the wrong place. We also have inept security and bad management in the form of the BAA, which is essentially bankrupt. They have just sold the World Duty Free shops to some Italian company but that won't stop them failing.

As for who to fly with, well you all have a choice, but BA is my recommendation if you want to get there safely.

Inflation, what inflation, my council tax bill has just come in, up 4.6% on last year. Cn't live on lap tops, sorry.

Add to WDF the whole portfolio of Australian airports and a whole swathe of cargo warehouses around heathrow and you can see where the assest stripping is taking place...

As to BA being the safest...

Fatal Event Rates for Airlines since 1970

Airline Rate

Turkish Airlines+ 3.58

Olympic Airways/Olympic Aviation 1.52

Swiss/Swissair/Crossair 1.2

TAP Air Portugal 0.94

KLM/KLM Cityhopper 0.81

Iberia 0.8

Alitalia 0.73

Braathens 0.65

Air France/Air France Europe 0.55

British Midland Airways 0.39

Lufthansa/Condor 0.19

SAS 0.19

British Airways+ 0.17

Aer Lingus/Aer Lingus Commuter 0

Austrian Airlines 0

easyJet+ 0

Finnair 0

Icelandair 0

Sabena** 0

Virgin Atlantic+ 0

I'd rather fly Virgin!

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I'm not so sure Ayatollah.

BAA airports account for such a vast slice of the UK's aviation capacity that it is difficult to see the monopoly being challenged.

For example, out of a total of around 200 million passengers per annum. Heathrow alone accounts for 70 million and this is set to rise to 80+ million when T5 comes fully on-line.

As more and more business travelers do what I do - i.e. ring their corporate travel office and say 'Please book me a ticket to <insert destination here>: don't mind what airline or route, as long as it's not BA and does not transfer through Heathrow', then the other London and provincial airports are going to add capacity to meet the rising demand. When I first started taking MME-AMS flights, they were twice a day with a Fokker 50. Now they do three round trips a day, two with F70s and one with a 737. I'm sure that all the regional airports could add more capacity to mainland European hubs and/or divert existing capacity away from Heathrow and to those hubs as passenger demand dictates.

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Anyone try booking a flight today through lastminute? I was hanging for ages. I wonder if their server was under high levels of demand with people trying to get their flights booked before theses increases were added, and any other nasty surprises in next weeks budget.

I forked out and extra £239.70 in taxes, levies and surcharges on my flight when I finally got through (gave up on lastminute and went straight to the airline website) bu**ered if I'm going to pay any more taxes on top of that!

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It is making Brown's 2.1% rate of inflation look more and more ridiculous as each day passes.

I calculate that airport charges amount to something like one ten thousandth of my annual shopping basket. So I don't see the £2 a pop increase will register on my inflation radar! How many times a day do you fly in and out of Heathrow, RB? Ever thought of buying your own airfield?

p

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As more and more business travelers do what I do - i.e. ring their corporate travel office and say 'Please book me a ticket to <insert destination here>: don't mind what airline or route, as long as it's not BA and does not transfer through Heathrow', then the other London and provincial airports are going to add capacity to meet the rising demand. When I first started taking MME-AMS flights, they were twice a day with a Fokker 50. Now they do three round trips a day, two with F70s and one with a 737. I'm sure that all the regional airports could add more capacity to mainland European hubs and/or divert existing capacity away from Heathrow and to those hubs as passenger demand dictates.

I know where you are coming from - but with current resistance to expansion at just about any airport......

I personally love smaller airfields and smaller planes - the smaller the better! Less time to board, no waiting for hours while they do head counts, bags on and off in minutes, through security in minutes.

If I could do LHR-JNB or LHR-SIN in a small twin-engined turbo-prop I would.

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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