If its costs Millions to park an craft at the airport, how do they make profit Watch

AsandaLFC
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This is ridiculous, ive just learnt that its cost millions to park a commercial airplane at the airport for hours. Not even days

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User1443542
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(Original post by AsandaLFC)
This is ridiculous, ive just learnt that its cost millions to park a commercial airplane at the airport for hours. Not even days

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I would assume they make profit by having passengers pay for tickets, and will also charge for transport services, such as if your company want to have x amount of containers transported to this place, and the plane will be travelling to there, you pay this much per container, ect
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there's too much love
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Source?
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AsandaLFC
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(Original post by there's too much love)
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My sister is a airhottest

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AsandaLFC
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(Original post by devangdave)
I would assume they make profit by having passengers pay for tickets, and will also charge for transport services, such as if your company want to have x amount of containers transported to this place, and the plane will be travelling to there, you pay this much per container, ect
How much does the airbus make per trip

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ShotsFired-9941
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(Original post by there's too much love)
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Not entirely the source you would be looking for but his claim is true

www.disney.com
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there's too much love
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(Original post by ShotsFired-9941)
Not entirely the source you would be looking for but his claim is true

http://www.ft.com/cms/s/0/3e417218-0...#axzz3VcMY6WzI
Can't view anything on the times I'm afraid due to their poor policy on charging people.
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ShotsFired-9941
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(Original post by there's too much love)
Can't view anything on the times I'm afraid due to their poor policy on charging people.
Well copy pasting the content is against their rules... but I'm a badass

The new chief executive of Heathrow has signalled that the UK’s biggest airport is looking to increase the landing fees it charges airlines by as much as 20 per cent in order to secure a return on a £17bn investment in a third runway.

John Holland-Kaye, who will take over as chief executive of the airport on July 1, told the Financial Times the company had proposed increasing the “aeronautical charge” from £20 per passenger to £24.

Landing fees, which are set by the regulator, are the biggest single source of revenue for Heathrow and were worth £1.5bn last year. They are usually passed on by airlines to passengers.

Heathrow is battling a severe shortage of capacity and has been shortlisted by the Airports Commission, the body set up by the government to recommend the site of the UK’s next runway. It is regarded by several senior politicians, including George Osborne, chancellor, as the best option, although no decisions are due until after the 2015 election.

Airlines are expected to resist strongly such an increase in landing fees to help pay for Heathrow’s expansion, because the airport already has some of the highest aeronautical charges in the world.
International Airlines Group, parent of British Airways, said: “Heathrow is already the most expensive hub airport in the world. Charges should go down rather than up.”

Mr Holland-Kaye stressed that the proposals were in a draft funding plan for a third runway that was submitted to the Airports Commission.
He expressed confidence that Heathrow could secure ministerial approval for a third runway opening in 2025, adding he could not rule out the case for a fourth one in the future.

Heathrow’s shareholders – led by Spain’s Ferrovial but also including Chinese, Qatari and Singaporean sovereign wealth funds – were, he said, prepared to invest in a third runway so long as there was “political consensus” behind the infrastructure, a “speedy planning” process and an “appropriate” regulatory regime.

Heathrow was, he said, looking at a £4 increase in the aeronautical charge, adding: “It is a real-terms increase that we believe our passengers are prepared to pay in order to get to the global markets they need to get to.”

Heathrow is willing to explore ways to offset the impact of higher landing charges – for example, air passenger duty could be cut on long-haul flights.

The UK Civil Aviation Authority infuriated Heathrow this year by insisting on a real-terms cut in the airport’s landing charges – just as the company was completing its £2bn Terminal 2, which opened last month.

Mr Holland-Kaye said Heathrow’s shareholders must be able to receive a “fair return” on their investments, adding that they should not be “put in a position where they’re putting all the capital up front and then feel as if they’ve had the rug pulled from under them once they’ve done what they said they would do”.

In a detailed submission about the third runway to the Airports Commission, Heathrow suggests an average aeronautical charge of almost £24 per passenger between 2019, when construction of the third runway could start, and 2048. The charge could peak at more than £27 before falling to less than £20 after 2044.

Heathrow estimates the airport’s weighted average cost of capital – a proxy for return on invested capital and a significant part of the regulatory formula for determining landing charges – to be 6 per cent in the period between 2019 and 2048.

This comes after the CAA angered Heathrow by cutting its cost of capital to 5.35 per cent in the five years to 2019.

By Andrew Parker (Financial Times)
1.7.2014
Full article at
http://www.ft.com/cms/s/0/3e417218-0...#axzz36D4Ajzwx

Source: http://www.airportwatch.org.uk/2014/...ay-for-runway/
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there's too much love
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(Original post by ShotsFired-9941)
Well copy pasting the content is against their rules... but I'm a badass


Source: http://www.airportwatch.org.uk/2014/...ay-for-runway/
Using my phone but I can't see where it says the rates:s
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User1443542
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(Original post by AsandaLFC)
How much does the airbus make per trip

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I don't know, I'm only speculating

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JC.
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Bull. Landing fees are usually between £10 and a couple of grand.
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crazycanuck
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They make money by not parking planes for hours at a time. The maximum amount of time a plane spends docked to the gate is 45 minutes. In fact, southwest airlines in the US hinged their financial turnaround on reducing the time spent at the gate. They spend only 25 mins at the gate.

In addition, they charge you and me for the airport fees. Look on your next plane ticket and you will find a charge for airport improvement or something similar.
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askew116
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lol at all the inaccurate information on this page. Parking fees are in the thousands, not millions.

Airport fees are charged to the passenger via the airline. When you buy a plane ticket, a significant portion of the price you pay is earmarked for such costs as airport fees, air traffic control services, immigration/customs services and so on. These charges can easily be half the gross airfare.

For instance, a few months ago I bought a return flight from heathrow to sydney, at a total cost of £968. Out of this, only £586 was the actual fare, and the remaining £382 are for 'taxes, fees, charges and surcharges'.

And thank you to ShotsFired for posting the FT article! :thumbsup:
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ShotsFired-9941
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(Original post by there's too much love)
Using my phone but I can't see where it says the rates:s
Well the report just says the airport generated £1.5bn last year from Landing fees(2013)

As per their fact sheet there was 469,552 planes operating in and out of Heathrow.

So doing the math it's an avg charge of £3,200/flight.. so red flag on the OP. I don't think the flights are paying a bomb for this


(Original post by askew116)
lol at all the inaccurate information on this page. Parking fees are in the thousands, not millions.

Airport fees are charged to the passenger via the airline. When you buy a plane ticket, a significant portion of the price you pay is earmarked for such costs as airport fees, air traffic control services, immigration/customs services and so on. These charges can easily be half the gross airfare.

For instance, a few months ago I bought a return flight from heathrow to sydney, at a total cost of £968. Out of this, only £586 was the actual fare, and the rem aining £382 are for 'taxes, fees, charges and surcharges'.

And thank you to ShotsFired for posting the FT article! :thumbsup:
I tempted to take that down... =P
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domonict
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Of course airports charge for landing and parking. That is their business!
you'll be telling us that ncp charge for parking next.
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there's too much love
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(Original post by AsandaLFC)
This is ridiculous, ive just learnt that its cost millions to park a commercial airplane at the airport for hours. Not even days

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(Original post by ShotsFired-9941)
Well the report just says the airport generated £1.5bn last year from Landing fees(2013)

As per their fact sheet there was 469,552 planes operating in and out of Heathrow.

So doing the math it's an avg charge of £3,200/flight.. so red flag on the OP. I don't think the flights are paying a bomb for this
There you go OP.
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