Cardiff Airport - General Thread

[Em0866]

I can't help but wonder if LinksAir are due to make an announcement in the next couple of weeks, then it would be more business than leisure routes they'll be aiming it. That is the feeling I get. Maybe something from Ryanair for summer 15 is a bit to late now. I can't help but feel that they may wait another winter out before they make any additional routes from CWL for S16. Again that is just a feeling.

I think the optimism may also be partly to do with the fall in fuel too

 

[TheLocalYokel]

I think the optimism may also be partly to do with the fall in fuel too

I'm sure that's a major factor.

 

[TheLocalYokel]

LOSSES WIDEN BUT CARDIFF AIRPORT SAYS DECLINE HAS STOPPED

http://www.insidermedia.com/insider/wales/132133-/

CWL reported a pre-tax loss of £4.3m in the 15 months to 31 March 2014 (£3.44m on an annualised basis), widened from the £3.1m pre-tax loss it made in the 12 months to 31 December 2012.

Not unexpected but until the airport can achieve a much greater footfall though its doors (with ancillary revenue being the main income stream for small regional airports these days) it's difficult to see how the losses each year can be stemmed.

These losses are for the 15-month period until 31 March 2014. Given that 2013 was a better year for passenger figures than 2014 has turned out to be it looks as though the balance sheet will make poor reading at the end of the current financial year too.

The airport's prediction that 2014/2015 would see a continuation of 2013's passenger growth has been shown to be over optimistic so far as 2014 was concerned. One wonders who is advising them because twelve months ago some of us amateurs who follow such things were forecasting a a drop in passenger figures in 2014 very much along the lines that eventually occurred.

 

[alphagolf]

LOSSES WIDEN BUT CARDIFF AIRPORT SAYS DECLINE HAS STOPPED

http://www.insidermedia.com/insider/wales/132133-/

CWL reported a pre-tax loss of £4.3m in the 15 months to 31 March 2014 (£3.44m on an annualised basis), widened from the £3.1m pre-tax loss it made in the 12 months to 31 December 2012.

Not unexpected but until the airport can achieve a much greater footfall though its doors (with ancillary revenue being the main income stream for small regional airports these days) it's difficult to see how the losses each year can be stemmed.

These losses are for the 15-month period until 31 March 2014. Given that 2013 was a better year for passenger figures than 2014 has turned out to be it looks as though the balance sheet will make poor reading at the end of the current financial year too.

The airport's prediction that 2014/2015 would see a continuation of 2013's passenger growth has been shown to be over optimistic so far as 2014 was concerned. One wonders who is advising them because twelve months ago some of us amateurs who follow such things were forecasting a a drop in passenger figures in 2014 very much along the lines that eventually occurred.

With the current month on month passenger number decline, we could be looking at under 1 Million pax by March 2015 if not earlier, what part have they actually stemmed the decline.

Financially.......... NO
Passengers.......... NO
Routes............... EVEN, maybe YES. But its going to take more than a 19 seater to turn around the passenger decline.

Whilst any new route is good news for Cardiff at this stage, they need to stop the decline on routes they already operate to.......

 

[TheLocalYokel]

With the current month on month passenger number decline, we could be looking at under 1 Million pax by March 2015 if not earlier, what part have they actually stemmed the decline.

Financially.......... NO
Passengers.......... NO
Routes............... EVEN, maybe YES. But its going to take more than a 19 seater to turn around the passenger decline.

Whilst any new route is good news for Cardiff at this stage, they need to stop the decline on routes they already operate to.......

I know it's a well-worn record (for those of us who actually remember gramophones) but CWL will only make real progress in its passenger numbers - and this is essential to feed the ancillary airport revenue streams - when a low cost airline sets up home in a substantial way. If it was Ryanair it doesn't even have to be a base given that the airline has so many dotted around Europe.

It really depends on how enticing an airline or airlines will find the lure of the route fund set up by the Wales Assembly government, and any pieces of the UK regional air connectivity fund that CWL can pick up. Looking beyond the election it's entirely possible that APD will be devolved to Wales - especially if Labour gains power with the help of the Scottish Nationalists and Plaid Cymru.

On a purely level commercial playing field CWL will continue to struggle hugely but with public money helping to effectively subsidise routes - money not available to competing airports - there is every chance that progress will be made, although its major obstacle of a small and economically challenged core catchment will not easily go away.

 

[Aviador]

I'm feeling old now TheLocalYokel after that comment.

 

[TheLocalYokel]

I'm feeling old now TheLocalYokel after that comment.

A young man like you? Away with you. You must have seen a gramophone in an antique shop when you were in your pram. :coco:

 

[TheLocalYokel]

http://www.yoursenedd.com/debates/2015- ... ff-airport

Last week there was a debate on Cardiff Airport in the Senedd, which is the home of the Welsh Assembly. The debate was called for by the Welsh Conservatives. The link above leads to the full text of the debate for anyone who might be interested.

Inevitably the debate was largely a vehicle for the various political parties to say what they would do to improve the airport's lot whilst at the same time they all seized the opportunity to criticise their political opponents' views on the matter.

The Conservatives want to privatise the airport as soon as possible whilst Labour pointed out the advantages of public ownership. The LibDems and Plaid Cymru didn't rule out supporting a degree of privatisation in the future and even Labour conceded there might be an element of this at some point. This seems to rule out Labour supporting a return to full private ownership which the Labour First Minister said was an option when the airport was bought by the Wales Assembly Government in March 2013.

There was some incorrect information given by some Assembly Members with a Labour member asserting that passenger figures had only seen falls in the last three month of 2014. The fact is that there were falls in each of the last six months of 2014. He also came up with a perplexing comment that in the two years of government ownership there had been three winters and he expected the summer this year to be positive.

Given that the airport was purchased at the end of March 2013, the government has actually owned it for nearly two winters, not three, and passenger figures for the current winter are only available until December so far.

The same AM could not resist another little gem in yet more support for the Labour government's record of ownership when he said that CWL was not in competition with BRS but that there were areas of competition but the two were not competing one against the other. Make of that what you will because it's double Dutch to me.

Our redoubtable AM hadn't finished because he then said that there are many areas of common interest (between CWL and BRS - BRS always seems to feature whenever Welsh politicians discuss CWL) including long haul flights 'that seek to benefit one another'. It almost seems as if he is suggesting that both airports are quite sanguine about the possibility of the other obtaining long haul flights. I can imagine the BRS CEO ringing up his opposite number at CWL offering hearty congratulations on CWL obtaining a NYC service with the comment that BRS weren't bothered because CWL getting it would benefit BRS. Actually, I can't imagine that at all.

Not to be outdone a Conservative AM thought that CWL should be widening its runway in preparation for A380 operation. Why it should need widening for this I have no idea because the CWL runway is the same width as LHR and MAN both of which operate the 380. The length would be the problem but for anyone to seriously think that the CWL catchment could support a regular 380 shows incredible optimism or stupidity, I'm not sure which. I think I am sure really but will leave others to make up their own mind.

This is just a taster of the flavour of the debate. It wasn't of a high standard and added very little if anything to the subject.

 

[TheLocalYokel]

Cardiff Airport may no longer be on life support, but it’s certainly on benefits... it needs a life plan'

http://www.walesonline.co.uk/business/b ... fe-9081028

Andrew Sargent, an airport consultant, has stood down as a non executive director on the Cardiff Airport Company and has been speaking to the local press. The headline gives a clue to his thoughts.

He says that the airport is strapped for cash and has big government loans to repay.

He goes on to say that 'ideally' some airport equity should be sold to a private investor but a low valuation or independent borrowing (ie not from itself in the form of the Wales Assembly Government) might affect the block Westminster grant to the WAG. The owners can't breach state aid rules either and I mentioned elsewhere on this forum recently that other departments within the WAG are competing for money.

Mr Sargent believes that CWL should follow the example of NCL that he says has lower costs per passenger, more flexible employment policies and 'great shopping and catering'. CWL also needs to invest money in onsite amenities in order to increase ancillary revenue streams.

Whilst I was out of the country I missed the news that the airport company will have a new chairman later this year, Roger Lewis the CEO of the Welsh Rugby Union who will stand down from this post in November after the rugby world cup.

Mr Sargent concludes by saying that the need is to '....create a financially numerate team, balance vested political interests, encourage enterprise and investment, protect safety, and manage airlines, service providers, retailers, caterers, and customers'.

I detect a degree of frustration within Mr Sargent's comments.

Another recent report suggests that CWL is looking to be close to 3 mppa within five years. That would be a phenomenal rise in such a short time and would raise passenger numbers three-fold from the current 1 mppa. It's been recently reported that Flybe hopes to get up to 400,000 a year. That would be a major achievement. However, to get to 3 mppa would require the substantial presence of a major low cost airline.

 

[TheLocalYokel]

Speedairways

An article has appeared today in the web edition of a major newspaper in Wales saying that a Slovakian start-up airline that they say is already flying is looking to base four aircraft at CWL from next year. The article is illustrated with an E 190 but it's not in any airline colours.

Speeedairways thinks it will carry 300,000 passengers per annum at CWL and plans routes to Vienna, Larnaca, Alicante, Malaga, Dublin, Rome and possibly Rotterdam. It will also fly 4 x daily to London City and up to 3 x daily to Manchester and Leeds-Bradford.

Although described as a start-up airline the articles states that Speedairways already flies to Kosice, Sliac, Brno and Vienna.

There is no trace of this airline on the internet, nor any routes shown for them at the four airports they are supposedly already serving.

The comment of the CWL MD seems very guarded and she doesn't mention Speedairways by name.

Some of the routes/frequencies seem hopelessly optimistic.

Unless or until this airline proves to be of substance I won't create a separate thread for it.

http://www.walesonline.co.uk/business/b ... es-9355533

 

[Em0866]

Hi Local

This is a bizarre report. It does sound good at face value but when you start reading into it, it seems too good to be true. The airport's response is very guarded and does not confirm or deny the claims of this possible new start up. I don't know if this is true, part-true or just completely bonkers. All will be revealed in due course...one way or another. I don't see how the routes to LCY, MAN or LBA will work (although they don't specify the type of aircraft being used). DUB route will be served with Aer Lingus and Flybe so I doubt another airline doing the route would work either.
Something doesn't seem right about this report, but as I say, all will be revealed in due course.

 

[jfy1999]

Seems like a bit of smoke without fire. CWL is clutching at straws a little bit here. I found a few websites that mentioned a company called Speedairways located in London, which is definitely not in Slovakia.

 

[Em0866]

To be honest, CWL have not reported this and they do not confirm these routes either. All they have said is that they are always in discussions with airlines with regard to routes. Therefore it, is my opinion, not CWL that are clutching at straws here. If you read the article carefully you will see what I mean.

 

[jfy1999]

Oops, my bad. :blush:
Ok then, it seems to be like the newspapers are pouncing on the faintest rumours, though.

 

[Em0866]

No worries
I think walesonline are making a mountain out of a molehill, to be honest. All they have reported is someone who has said they would be interested to fly from CWL with some random flights with up to 4 aircraft based there. Of course, this does not mean that it will happen. It'll all become more clear as time goes by. I suspect it is "watch this space and see what (if anything) happens

 

[TheLocalYokel]

Wales Online is usually very well informed about CWL matters, especially the group's business editor Sion Barry.

The author of this report seems to be another journalist. The author would certainly have spoken to the CWL management before publishing and the CWL MD's somewhat guarded comment suggests that he did.

Although her comment is guarded, if there was absolutely nothing in it one would think she would have said so, at least to the journalist when the story would have been killed. It may be that whoever is behind this airline spoke to Wales Online as well as making an initial approach to the CWL management. It took just a few minutes for an internet check to reveal that the airline is not as described. The CWL management would have surely done some immediate background checks themselves but they may have wanted further time to check in more detail, hence the somewhat vague comment from the airport MD.

Furthermore, to publish something that is clearly incorrect and easily capable of checking (that the airline is already flying to named airports) does seem very strange, coming as it does from such a well known (in Wales), respected and established news journal.

It seems too that the suggested routes have been plucked from the air.

Dublin - two carriers already on this

Alicante and Malaga - Vueling and charter airlines already on these. Could a new, unknown airline really make inroads into this market given the established competition?

Rome and Vienna - better bets, especially Rome. Neither route currently operated

Larnaca - possible as it's a charter-only route at the moment

Rotterdam - really?

London City, Manchester, Leeds-Bradford - given some of the other routes mentioned it must be presumed that the plan is to use at least 100-seat jet aircraft. Unless a mixed fleet is planned even the most ardent CWL enthusiast would concede that these domestic routes are marginal at best and would have no chance with aircraft this big - or at the suggested frequencies.

When I first realised that all was not as reported my assumption was that this was a virtual airline and that somehow the press reporter had been conned. Even that doesn't seem to be the case. As E m said previously, it's bizarre.

 

[Em0866]

I'll be keeping an eye on further possible reports on Walesonline. I do not expect a retraction but some further clarification would be most welcome. I doubt this will happen though

 

[Aviador]

Strangely enough there doesn't seem to be anything on the internet about this "new" outfit. Not something you'd expect from a new airline wanting to get known.

 

[TheLocalYokel]

Strangely enough there doesn't seem to be anything on the internet about this "new" outfit. Not something you'd expect from a new airline wanting to get known.

It doesn't seem to exist as an airline, only apparently as an aspiration - if that.

I still can't understand why the Wales Online news outlet (it's part of a group that includes the Western Mail and South Wales Echo, Wales's major newspapers) published a story that is clearly lacking in substance.

 

[Em0866]

It was an odd report, but I note that it was not the usual reporter who reports on things to do with the airport. After saying that, I would have thought this would have been checked before going to print. As I said though, all will become more apparent (if anything) later in the year.