Cardiff Airport - General Thread

[Jerry]

The money will be used to improve terminal buildings.

Interesting. So can we expect more terminal improvements in the future?

 

[Jerry]

The Wales Online article about the £6 million being invested into the airport says it's not a loan but that more shares are being created and the Welsh Government are getting those shares in return for the money. The Conservative party says that a cash injection like this is usually a sign of a company in financial distress and are asking why the airport hasn't secured private investment yet which is a valid question. Also in the article a new logistics hub for freight is mentioned.
https://www.walesonline.co.uk/business/business-news/reasons-welsh-government-made-6m-14446093

 

[TheLocalYokel]

Just before Christmas 2012 the Welsh Government announced it was in advanced talks to purchase CWL and this came about in March 2013. The original plan was to secure a private sector partner but this proved elusive and eventually the government said it would be a longer term aspiration and anyway it was the intention to keep a majority share in the hands of the government through its airport company. The current thinking seems to be that a private sector partner will need to be in place when the time comes to build a new terminal.

Creating additional shares is sometimes used to inject cash into a company when borrowing money is either a poorer option, as seems to be the case here, or an unattainable one. Clearly it lessens the value of existing individual shares. As the WG is the sole shareholder that might be less of an issue than with a publicly listed company. In effect the WG has added £6 million to the price it paid for the airport.

 

[Jerry]

The current thinking seems to be that a private sector partner will need to be in place when the time comes to build a new terminal.

The masterplan will be interesting to see in what sort of time frame that is envisionaged in the future.
With the private investment the government does need to get CWL to a profitable state before a private investment firm comes along as no doubt most would want a return on their investment sooner rather than later so the government needs to keep spending the money to get the airport to a profitble state.

Creating additional shares is sometimes used to inject cash into a company when borrowing money is either a poorer option, as seems to be the case here, or an unattainable one.

I wonder if they didn't want to increase the debt that the airport already has in Welsh Government loans.

 

[TheLocalYokel]

I wonder if they didn't want to increase the debt that the airport already has in Welsh Government loans.

Indeed, that was the reason. Creating additional shares means no interest is payable as it would be with a loan so in the short term at least it's a more efficient method for the airport company.

Debt could also be converted into equity, again weakening the value of individual shares, but given the airport is state-owned that might well contravene state aid rules as the government would be writing off its own debts (strictly its wholly-owned airport company's debts) with public money.

 

[Jerry]

Plaid Cymru have stated at their spring conference that if they got into government that they set up a national carrier for Wales but i wonder if they would be better off investing in Flybe instead as they are already established at the airport with a growing operation and established route network.
Also they have said they would hold an independence referendum by 2030, although the likelihood of Plaid getting into government is remote and independence is even more remote an independent Wales would naturally be able to set it's own APD levels to potentially attract new airlines and new routes.
http://www.bbc.co.uk/news/uk-wales-...news&ns_source=Social Media&ns_linkname=wales

 

[TheLocalYokel]

Although Flybe has a strong presence at CWL it's still a small percentage of the airline's overall network. Would Plaid Cymru want to invest in something that is primarily operating for the benefit of people outside Wales?

Where would Plaid Cymru get the money from to set up an airline anyway? They would need to borrow a huge sum unless they are merely talking about a token presence with very small aircraft, perhaps for intra-Wales routes, and even that costs money. We all know airlines suck in money like nobody's business, especially start-ups, and that they are often a path to losing vast amounts of it.

 

[Jerry]

Although Flybe has a strong presence at CWL it's still a small percentage of the airline's overall network. Would Plaid Cymru want to invest in something that is primarily operating for the benefit of people outside Wales?

Where would Plaid Cymru get the money from to set up an airline anyway? They would need to borrow a huge sum unless they are merely talking about a token presence with very small aircraft, perhaps for intra-Wales routes, and even that costs money. We all know airlines suck in money like nobody's business, especially start-ups, and that they are often a path to losing vast amounts of it.

US and Europe are mentioned but i haven't seen anything with specifics.
I think with the pro independence movement they feel having a national airline is part of nationhood. A lot of pro independence literature that I've read often refers to the Republic of Ireland as an example and it's possible they look at aer Lingus as an example in their mind's of what Wales is missing without realising the vast differences between Wales and Ireland.

 

[aviatorconcorde]

Plaid Cymru have stated at their spring conference that if they got into government that they set up a national carrier for Wales but i wonder if they would be better off investing in Flybe instead as they are already established at the airport with a growing operation and established route network.
Also they have said they would hold an independence referendum by 2030, although the likelihood of Plaid getting into government is remote and independence is even more remote an independent Wales would naturally be able to set it's own APD levels to potentially attract new airlines and new routes.
http://www.bbc.co.uk/news/uk-wales-...news&ns_source=Social Media&ns_linkname=wales

Plaid Cymru are living in a dream world.

 

[superking]

Government run airlines.
You only need to look at airlines through out the world government owned directly or indirectly simply does not work.You only need to look closer to home with Iberia,british airways and aer lingus were all on the ropes before they all joined forces.

 

[Jerry]

Only government owned airline that i can think of that is doing well is Finnair but i think they might be run by a hands off approach but generally the record for government run airlines isn't good!

 

[aviatorconcorde]

Only government owned airline that i can think of that is doing well is Finnair but i think they might be run by a hands off approach but generally the record for government run airlines isn't good!

Emirates comes to mind.

 

[Jerry]

Emirates comes to mind.

Yeah and could you count Etihad and Qatar though i don't believe either are making a profit at the moment.

 

[superking]

With the ME airlines they only need to pump a bit extra out the ground and that sorts out losses. Funding for these is no problem.

 

[Jerry]

With the clocks going forward tonight the summer will be starting tomorrow and so here's a small summary of what will kick in from tomorrow onwards for the month of April.
Vueling will go from 4 weekly departures to 17 weekly departures with increases on Alicante and Malaga and Barcelona starting up along with Palma de Mallorca. Also Vueling will recieve there first A320neo shortly so could be they might be the first airline to operate an A320neo revenue service to CWL.

Flybe will go from a base of 2 E195s and 1 Q400 to 2 E195s and 1 E175 which is currently on it's way from Belfast City. As well Geneva and Chambery will stop for the summer but Dusseldorf and Verona will startup again Faro will expand from 2 weekly to 5 weekly and the new service to Venice will start on Tuesday possibly with some sort of artwork or special design to help launch it! https://twitter.com/Cardiff_Airport/status/977494683969638400

Ryaniar's 2 weekly Faro service will start again on Monday which means they will go from 2 departures a week to 3! And Superbreak will begin their summer series of one off charters with Seville on Monday.

 

[TheLocalYokel]

Who is operating for Superbreak on Monday, Jerry?

 

[aviatorconcorde]

With the ME airlines they only need to pump a bit extra out the ground and that sorts out losses. Funding for these is no problem.

Out of the 3, i’d say emirates is the most solid and financially sound.

With the clocks going forward tonight the summer will be starting tomorrow and so here's a small summary of what will kick in from tomorrow onwards for the month of April.
Vueling will go from 4 weekly departures to 17 weekly departures with increases on Alicante and Malaga and Barcelona starting up along with Palma de Mallorca. Also Vueling will recieve there first A320neo shortly so could be they might be the first airline to operate an A320neo revenue service to CWL.

Flybe will go from a base of 2 E195s and 1 Q400 to 2 E195s and 1 E175 which is currently on it's way from Belfast City. As well Geneva and Chambery will stop for the summer but Dusseldorf and Verona will startup again Faro will expand from 2 weekly to 5 weekly and the new service to Venice will start on Tuesday possibly with some sort of artwork or special design to help launch it! https://twitter.com/Cardiff_Airport/status/977494683969638400

Ryaniar's 2 weekly Faro service will start again on Monday which means they will go from 2 departures a week to 3! And Superbreak will begin their summer series of one off charters with Seville on Monday.

Thanks for that update Jerry. As more neos come to Vueling we are bound to see one or two turn up.

Is something interesting happening at CWL next week? CWL retweeted something, you may be able to find it Jerry.

 

[Jerry]

Is something interesting happening at CWL next week? CWL retweeted something, you may be able to find it Jerry.

Venice launches next week it sounds like they have some sort of artwork or design being made for the launch.
https://twitter.com/Cardiff_Airport/status/977494683969638400

Who is operating for Superbreak on Monday, Jerry?

Enter Air. They are operating all of Superbreaks flights, they've already operated their Icelanf flights from CWL.

 

[aviatorconcorde]

Enter air seem to be making a fair few appearances at CWL of late!

Just seen CWL post a bit more on that announcement on social media Jerry. I'm intrigued now, but I hope it's not an overkill like the flybe uniform annoucement!

 

[Foxlimayankee]

I've seen some twitter posts about some companies providing some goods, but i'm sure Tuesday was mentioned which I believe coincides with the launch of Venice?
This announcement is concerning something "Very exciting" tomorrow, but does say "one of our Airlines", so guess it's no new Airline
Let our imaginations go wild.... any thoughts?

Mine
- Long Haul charter although possibly too early for TUI which is 5th April. I thought they always used to release LH before SH but no mention of split dates.
- Flybe 4th aircraft for S19 (but likely no confirmed routes/frequencies just yet)
- Vueling upping frequencies - Didn't they announce frequency increases around this time of the year before?