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Old December 25th 20, 02:52 PM posted to
Recliner[_4_] Recliner[_4_] is offline
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Default Heathrow runway 3 lawful

On Fri, 25 Dec 2020 14:09:41 +0000, Graeme Wall wrote:

On 25/12/2020 09:18, tim... wrote:

"Recliner" wrote in message
Arthur Conan Doyle wrote:
Recliner wrote:

Oh, I don't think HAL will be in any hurry to pursue this
opportunity. It
currently has much more pressing concerns. It's much more likely to
prioritise the re-development of the central terminals, given the
low demand. With T3 temporarily closed, there may be an opportunity to
close a wing of it permanently, and accelerate the expansion of T2.

This is so true. The costs and impact of trying to change a tyre
whilst moving
vs. being able to take a more optimun approach must be significant.
The question
will be how to finance this when revenues are down from landing fees
and retail

They want to be able to raise their fees to fund the investment, in
the way
that other regulated utilities do. Needless to say, HAL's biggest
IAG, which already has plenty of slots, is furious at the idea.

Because it's fundamentally the wrong way to do it

Sainsbury's doesn't put up its prices because it wants to increase the
size of it shops to expand into selling more type of goods

It raises the capital to do that, in the markets, based upon a
prospectus that "promises" the extra income from these new sales will
pay back the loans (with benefits).

Whether those promises are likely to, or not, come to fruition, is for
the banks to evaluate when deciding whether to lend the money, and if
they get it wrong, its the banks shareholders that lose, not the
Airport's current customers.

That way a strictly financial appraisal of the benefits of a scheme are
properly assessed, by the people *qualified* to do it.* It isn't just
done because some big-wig head of a corporate happens to be chums with
some politician in an influential position and persuades them to
champion it to Government, over a game of golf.

The argument that LHR is a utility that has to be allowed to expand for
the good of the overall economy is just stuff and nonsense, that
shouldn't enable it to ride roughshod over standard corporate accounting

It's a purely commercial organisation - it should be told to play by
normal commercial rules

The point is it is a monopoly, if you want to play you have to pay their

That's why it's treated as a regulated utility (like a water company), with the regulator controlling the prices. If it
was a purely commercial organisation, it would set its own, probably higher, prices.

IAG likes the fact that LHR is (Covid-apart) always short of capacity, as it controls so much of it. It doesn't want the
capacity to be increased, as that would devalue its own hoard of slots. And it particularly doesn't like having to pay
higher charges to allow HAL to invest in increased capacity. That's a lose-lose for IAG, so expect it to be one of the
loudest voices against the third runway. I'm sure Sean Doyle and Luis Gallego will have all sort of eloquent reasons to
oppose it.