Birmingham: (BHX) - General Thread

[nwoody2001]

Interestingly, out of the 31 routes Wizz operates to from LGW, DSA & CWL, just 5 of the routes are destinations that are not available with any airline from Birmingham:

- Athens
- Kosice
- Lublin
- Poznan
- Suceava

With the exception of Athens, all are more likely to be served by away based aircraft.

...and once things have settled down, i can imagine some of these being served from BHX... POZ already has been served and only got dropped because of retiming of the W flight operating it....

 

[Matty_85]

Apologies if my comments come across condescending. This is not my intent, i merely prefer the direct/black and white approach to things. I must stress that i too am not involved in the aviation industry (i am instead involved in the development and regeneration industry) and am too merely an enthusiast that wants the best for the city and the airport.

However, what i have learned during my time he is that people really need to stop comparing BHX with MAN. Whilst the cities are similar in size and context, their airports are not an can not be compared. BHX is a single airport owned 50% by local councils and 50% by a pension fund, and is pretty standard for airports of a similar size around Europe. MAN is owned 100% by Manchester Airport Group, a ground owned 100% by local councils but during its time has owned a number of airports.... it currently owns MAN, EMA and STN. Its has a global empire and funnily enough, has a bias towards investing into MAN...

MAN can therefore afford to plough money into deals, not through asking the tax payers of Manchester for extra money, but instead leveraging profits from one airport (say EMA) into the likes of MAN... Lets look at the growth of MAN, BHX and EMA to compare over the last 10 years....

MAN
2010: 17,663,000
2015: 23,095,000
2019: 29,367,000 (+66% in 10 years)

BHX
2010: 8,594,000
2015: 10,180,000
2019: 12,646,000 (+47% in 10 years)

EMA
2010: 4,111,000
2015: 4,446,000
2019: 4,674,000 (+13% in 10 years)

Now again, i must stress that i am not involved in the industry but this is what i can tell from the above....

1. Given MAN and EMA are owned by MAG, where do you think MAG invest their money in attracting passanger growth? because based on the above, its clear its not EMA!
2. Contrary to popular belief, BHX has not really remain stagnant to growth but has indeed grown nearly 50% over the last 10 years which is 3x more than the likes of EMA
3. MAN is an airport that is over twice the size of BHX and has always been (well for the last 20-30 years at least)

Consequently, we really need to stop comparing ourselves with MAN, anymore than we compare ourselves with LHR, STN or even LTN.

Comparing isn’t productive I agree but as in any business you have to see what is going on around you and see if you can replicate or innovate further another businesses success. That’s what I’m trying to do here, not just compare.

I imagine MAG have much greater resources I’m not disputing this. I also know MAN airport is wholly owned by Manchester Airport Group which itself is majority owned by Greater Manchester councils & I’m sure those local authorities have historically given up some dividends in the interest of investing in the airport for the long term prosperity of the airport and region.

1) You did miss out Stansted in your post which has received significant investment from MAG and have grown significantly as part of that group so drawing a parallel with just EMA and MAN isn’t a fair picture of MAGs investments. Back to BHX all I was calling for was the use of any investment to be used to actually incentivise airlines to set up here.

2) BHX passenger numbers haven’t stagnated no but it’s choice of routes which are vital for connectivity to the region have really significantly reduced. Those passenger growth numbers don’t reveal the true picture of what’s happened at BHX in the past 10 years in all honesty.

3) I’m really not wanting to be the same in size, breadth or in choice of carriers as any other airport. I’ve said before I’d be happy with 13,14,15 million as long as the airport is actually providing a stronger more diverse network of connections to meet demands of the region and its prosperity

 

[TheLocalYokel]

However, what i have learned during my time he is that people really need to stop comparing BHX with MAN. Whilst the cities are similar in size and context, their airports are not an can not be compared. BHX is a single airport owned 50% by local councils and 50% by a pension fund, and is pretty standard for airports of a similar size around Europe. MAN is owned 100% by Manchester Airport Group, a ground owned 100% by local councils but during its time has owned a number of airports.... it currently owns MAN, EMA and STN. Its has a global empire and funnily enough, has a bias towards investing into MAN...

A look at MAG's website suggests it is not wholly owned by a consortium of local authorities. An Australian investment fund owns 35.5% of MAG and has done so since 2013.

Our Leadership Team | Manchester Airports Group

Our Board of Directors and Executive Committee bring extensive experience to leading our airports group. Meet the leadership team.

www.magairports.com

 

[andrew.clarkson]

hi there nwoody2001,i thought accordding to wiki that birmingham airport is 49.75 % owned by birmingham city council, plus six other councils, then the other 48.25% is owned by Ontatrio Teachers Pension fund, where by 2.75% is staff owned.... so birmingham and the council are majority shareholders, where as Ontario Teachers Pension fund only has a minority stake according to their website...AndyC

 

[rollo]

BHX ownership.

Onrario Teachers Plan 48.25%%
Seven West Midland Councils 49%
Employees 2.75%

The employee shares will mostly be owned by ex or soon to be ex employees (I know of two who have just taken VR) and would be entitled to vote on any plans as they see fit and in reality most would not bother voting.

The actuality is that the two main shareholders holders would need to agree on major issues assuming the seven councils agree amongst themselves.

It is worth noting given some of the criticism of BHX management that Mr Barton etc are working under criteria set by the above and will not be allowed to stray from them they will be limited in ability to offer deals to airlines as like all shareholders who are investors the objective is obtain a financial return, its called the real world.

 

[Matty_85]

its called the real world.

How condescending. Not everything is as simple as that. Pension funds like Ontario teachers PF are notoriously more risk averse than investment companies when looking at portfolios. What BHX needs isn’t a pension fund who’s only interest is a steady constant return on investment. At least with an investment company they will invest, take the necessary risks & give it needed time to give a greater return

 

[andrew.clarkson]

Hi there all, what Birmingham Airport needs as I have said before is a private investment company to come in and do what it needs to do....AndyC

 

[rollo]

How condescending. Not everything is as simple as that. Pension funds like Ontario teachers PF are notoriously more risk averse than investment companies when looking at portfolios. What BHX needs isn’t a pension fund who’s only interest is a steady constant return on investment. At least with an investment company they will invest, take the necessary risks & give it needed time to give a greater return

Matt, no intention to appear condescending and wasn't particularly referring to any particular group of shareholders just commenting on the reasons for investing as in getting a return in exchange for a risk.

I'm fully aware that the Ontario Teachers Plan is an Ontario Government sponsored company and its reason to exist is to provide its members a return on its investment of their money for their retirement.

My main point which maybe I didn't put across properly was that BHXs management will be constrained in what they can do by the ultimate owners the shareholders.


Let's keep it friendly.

 

[JENNYJET]

It could have been worse, just ask Monarch ex employee's if they would prefer the current Airport investment structures or the private investor that ultimately destroyed their company. I admit I dislike both and would welcome interest from an existing major airport business with an excellent track record of growth and customer service.

Finally, I may have triggered a bad tempered debate last Sunday with my query, I did not intend friction even if it keeps the forum ticking over nicely, I regret any disharmony and apologise.

 

[TheLocalYokel]

Bristol Airport seems to do very well out of OTPP which has fully owned the airport since 2014, having gradually increased its stake prior to that. OTPP has invested hundreds of millions into infrastructure and says it wants to invest a lot more, hence its decision to appeal the local authority's rejection of its expansion planning application which included a request to increase the passenger planning cap.

BRS is a different type of airport to BHX being predominantly a low-cost and holiday airline facility. The Bristol region, one of the most economically vibrant in the country, seems content to use LHR for its scheduled long-haul something the Qatar Airways CEO picked up on when he opted for CWL instead of BRS. This situation seems to work for the region situated as it is at the western end of the M4 corridor.

BRS has certainly been a profitable venture for OTPP and the previous private sector owners. It would be a fascinating prospect if OTPP became BHX's sole owner.

Of course, no-one can accurately foresee how aviation will come out of the pandemic or at what pace and many things might alter in the next few years, or even months.

 

[IanFarquharson]

Hi there all, what Birmingham Airport needs as I have said before is a private investment company to come in and do what it needs to do....AndyC

How does that change anything, BHX is still in the same location and market, if airlines dont want to come then they wont come !

It is quite simple !

 

[Seasider]

I don't think it has been a bad tempered debate. As I said the other day, I have enjoyed following it.

 

[IanFarquharson]

This will make people feel better

Air Transport Movements at UK Airports today

LHR = 255

EMA = 118

STN = 76

BHX = 63

MAN = 52

LTN = 36

LGW = 19

LPL = 15

BRS = 4

 

[Kevin Farnell]

This will make people feel better

Air Transport Movements at UK Airports today

LHR = 255

EMA = 118

STN = 76

BHX = 63

MAN = 52

LTN = 36

LGW = 19

LPL = 15

BRS = 4

I'm guessing that a good proportion of BHX's 63 ATM's are freight flights. I've been watching FR24 on and off tonight and have been surprised how many freight aircraft I've seem using BHX. OK, they are mainly Fairchild metro's, Saab 340's and ATR72's but they all generate landing and handling fees and provide employment for locals.

Kevin

 

[IanFarquharson]

I'm guessing that a good proportion of BHX's 63 ATM's are freight flights. I've been watching FR24 on and off tonight and have been surprised how many freight aircraft I've seem using BHX. OK, they are mainly Fairchild metro's, Saab 340's and ATR72's but they all generate landing and handling fees and provide employment for locals.

Kevin

Yes mainly freighters but great to BHX attracting this business where others are not

 

[rutamkrd]

A look at MAG's website suggests it is not wholly owned by a consortium of local authorities. An Australian investment fund owns 35.5% of MAG and has done so since 2013.

Our Leadership Team | Manchester Airports Group

Our Board of Directors and Executive Committee bring extensive experience to leading our airports group. Meet the leadership team.

www.magairports.com

And they came onboard expressly to fund and draw the dividend from Stansted .

 

[jfy1999]

There is a rumour on another forum that Signature are looking to expand their business jet services at BHX, since space at Luton is at a premium and being eaten up by terminal extensions.

 

[IanFarquharson]

There is a rumour on another forum that Signature are looking to expand their business jet services at BHX, since space at Luton is at a premium and being eaten up by terminal extensions.

Just rumours no substance at all so I am reliably informed

 

[Ray Finkle]

Birmingham has finally caught up with many other major airports and now offers rapid testing.

BIRMINGHAM AIRPORT OFFERS RAPID COVID-19 SCREENING SERVICES

Rapid covid-19 tests offered at Birmingham Airport

www.birminghamairport.co.uk

 

[Ianbutty]

G

Birmingham has finally caught up with many other major airports and now offers rapid testing.

BIRMINGHAM AIRPORT OFFERS RAPID COVID-19 SCREENING SERVICES

Rapid covid-19 tests offered at Birmingham Airport

www.birminghamairport.co.uk

Great to see the aviation industry doing its bit.