Airports

Record aircraft orders point to global growth bump

8 May 2013

When airlines embark on a frenzy of expansion, economic slowdown tends to follow. That’s the conclusion implied by Breakingviews’ study of historical data. If the relationship holds, recent big orders by Asian airlines suggest rising risks of turbulence in the economy next year.

Third airport sale may give London a lift

22 Jan 2013

Manchester airport’s owners are paying a surprisingly lofty $2.4 bln for Stansted, Heathrow’s neglected little sister. The bet hinges on utilising spare capacity. If passenger numbers double, as they could, the transformation would also ease London’s air traffic squeeze.

Heathrow needs decisive capacity fix

21 Jan 2013

Snow has exposed the London airport’s lack of slack when problems arise. Passengers’ expectations of a zero-failure service are hard to shift. But if Heathrow can’t build another runway, it needs to be radical. That may mean operating its infrastructure at lower capacity.

Airport mess shows limits of German expertise

7 Jan 2013

Berlin has delayed the opening of its high-tech airport - for the fourth time. The fiasco is all too typical of Germany. Ossified local politics and a penchant for over-engineering have led to many botched infrastructure projects. The legend of German efficiency is exaggerated.

Delta buys premium Heathrow seat for economy fare

11 Dec 2012

Being Richard Branson’s junior partner cost Singapore Airlines two-thirds of its investment in Virgin Atlantic. Delta, however, is buying the 49 pct stake at a discount to what slots at London’s premier airport usually command. That should help the new joint venture take flight.

Memo to UK’s new air strategists: let numbers talk

5 Sep 2012

After years of make-do-and-mend, the UK is once again arguing about London’s airport capacity, and possible expansion at Heathrow. Most people seem most keen to rubbish plans they dislike. The right approach is more positive. Analyse all ideas robustly: then make a decision.

Dubai’s flying shoppers could ease its debt burden

6 Mar 2012

The emirate wants to borrow at least $500 million against its giant airport retailer’s future revenue. Rising passenger numbers and expanding retail space seem immune to Dubai’s debt hangover. And securitisation looks increasingly attractive as Western banks withdraw.

New London air hub plan needs public money to fly

1 Dec 2011

Heathrow is a jam-packed embarrassment for those who promote London as a global financial centre. A brand new four-runway hub in the Thames estuary is appealing but expensive. Even using rosy forecasts, it is hard to see an all-private enterprise earning a decent return.

Interest in Spanish airports sale is deceptive

9 Sep 2011

The $7.5 bln privatisation of Madrid and Barcelona airports has attracted considerable attention. Six groups are lining up to bid for each. But the timetable is tight, the concessions short, and the prices steep. An auction will struggle to get off the ground.