Source http://www.airliners.net/photo//2135920/L/
British airports are expanding after reaping the rewards of supportive investments
‘It’s a chicken and egg situation,’ one specialist construction investor told Expose News this week.
‘How do you get good infrastructure? You invest a reasonable amount of money into it, consistently over the long-term, and you get the best people to build the project, and then manage it.
‘Whether that’s data and server infrastructure, a coastal barrage, a reservoir, a wind farm, a shipping terminal or an airport.
‘Getting the right people is key – I would not recommend an aviation investment unless I knew exactly who were building the airport then running it for the next 20 or so years.
‘I say to my clients, that you can either pay a premium in the first place for the top people in their fields, or get someone cheaper and pay the lawyers later to clean up the mess.
‘Infrastructure is risk….’
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The financial analyst, based in London’s banking quarter at Canary Wharf, was responding to our series of recent articles about construction, housing and infrastructure.
‘Take airports,’ he added. ‘British aviation is doing well because serious capital is put into what’s on the ground, even before a plane ever takes off, and these facilities attract the best brains – who work for the highest-performing specialists – from around the world, to develop these assets.
‘You can’t say that about other sectors in the UK at the moment, such agriculture, non-advanced manufacturing, wholesale or general construction……’
He’s not wrong. The UK’s airport sector is growing bigtime, with major London hubs like Gatwick, Heathrow, Luton, and Stansted attracting large investments in a bid to fulfil ambitious expansions plans.
Gatwick’s £2.2bn second runway is on the cards.
So is Luton’s second terminal and Stansted’s £1.1bn injection from the government is already underway.
Of course, the relentless £10bn plus march of Heathrow never seems to stop.
‘It’s no surprise that Heathrow and Gatwick rank highly with consumers,’ our analyst concluded.
‘The investment in them is stable and long-term.
‘Once Stansted and Luton have finished their respective rounds, they’ll be up there, too.
‘As I said, it’s chicken and egg. You can’t get one without the other. You can’t get performance without the money…’
The aviation banking consultant was referring to the Telegraph’s recent survey of the user-friendliness of British airports, in which Heathrow ranked fourth and Gatwick sixth, out of Britain’s thirty top airports.
The Telegraph Travel ranking compared the airports on punctuality (percentage of flights arriving and leaving on time), average delay times, average security times, and flight cancellation rates.
Regional airports also fared well. Liverpool John Lennon Airport came first, Belfast George Best second, and Newcastle International ranked fifth..
‘It’s not all that surprising – Liverpool and Belfast have relentlessly invested, and they are also owned and managed by extremely capable operators, who have been involved for years and years.
‘I can think of the Peel Group who have invested well over £100 million into Liverpool John Lennon, Ancala along with numerous other lenders.
‘If you read LJLA’s strategic plan for the next 5 years and their masterplan for the next 25, they are model answers for how to grow an airport. They’ve stuck with it.
‘Vinci have been nurturing Belfast for nearly a decade. £100 million has been set aside. ‘Already there’s a new terminal extension. ‘More to come with Phase 2.
‘Infrastructure investors such as Macquarie have taken note, and about to take multi-billion stakes in Bristol, Birmingham and London City Airports.
‘They are pensions’ people – they wouldn’t be interested if this wasn’t long-term….’
Birmingham, Bristol and London City airports serve over 25 million passengers each year and service both regional and global airlines.
‘Even mid-ranking, loss-making airports such as the Isle of Man have bright futures.
‘There’s £100 million going into Ronaldsway, which is the main airport near the capital over there, over the next decade.
‘It’s gone through a series of tactical upgrades in recent years, from better facilities in departures to drainage works around the terminal, and it’s highly valued by the people who live there.
‘These improvements don’t necessarily make returns overnight – but they increase the customer experience for commuters who take their journeys to Liverpool and London very seriously.
‘The average delay was 20 minutes – that’s going to come down and down in the future, when the investment pays off.’
The Isle of Man Airport was named 17th in Telegraph list.
The survey took in factors how much time travellers spend in terminals, shops and restaurants, the quality of executive lounges, and parking spaces.
Here are Britain’s top 30 biggest airports, ranked from best to worst according to the Telegraph.
- Liverpool John Lennon
- George Best Belfast City
- London City
- London Heathrow
- Newcastle International
- London Gatwick
- Birmingham
- Inverness
- Aberdeen International
- Jersey
- Edinburgh
- Southampton
- Manchester
- Glasgow
- Cornwall Newquay
- East Midlands
- Isle of Man
- London Luton
- Belfast International
- Norwich
- Guernsey
- Bournemouth
- Leeds Bradford
- Exeter
- London Southend
- Sumburgh
- Bristol
- Glasgow Prestwick
- London Stansted
- Cardiff
