Can Terminal Rivalry Work?

[Aviador]

According to the Independent, British Airways’ parent company, IAG, has demanded that Heathrow be split up, with terminals "run by rival operators".

What are peoples thoughts on this, do you think it would work and if so do you think it should be rolled out to other airports that can support more than one terminal?

Here's the full article: http://www.independent.co.uk/travel...ry-competition-third-runway-iag-a8194291.html

It's difficult to say whether the idea would work but could it make smaller airports more competitive in the process?

 

[Jerry]

But what do they mean by operator? Do they mean different companies operate the individual terminals or do they mean alliances or like in the USA airlines themselves?

 

[Aviador]

But what do they mean by operator? Do they mean different companies operate the individual terminals or do they mean alliances or like in the USA airlines themselves?

An operator would be a company responsible for the terminal and it's operations. Each terminal would have a different operator with it's own airline charges. I imagine if it was implemented each terminal would need to pay fees to whoever was left responsible for the operation of the runway(s). It sounds awfully complicated.

 

[TheLocalYokel]

So if Heathrow has five terminals in future each one operated by a different group or company (would they also own their terminal?) it's not far short of saying there are five separate airports on the same site but all sharing the runways.

What if terminal 1 offered a better deal than the other terminals etc? Would airlines want to switch terminals to take advantage? They couldn't all go there for the best deal.

The whole idea sounds very complicated and would probably cause more difficulties than it solves. If it did go ahead what's to stop the same at LGW, MAN and other airports with more than one terminal?

If IAG are the proposers you can be sure they think there is something in it for them.

 

[Aviador]

Too true and what if BA lost the bidding for Terminal 5 ops, they'd soon change their tune then. I'm not convinced IAG have thought this through properly. Another thing to consider is it could split the alliances up.

 

[aviatorconcorde]

This is nothing new, JFK works like this. BA operate a terminal, american do etc etc. The ***Please Read Forum Terms of Service*** up occured during the heavy snows as they cannot send any aircraft to any terminal as they are all run by different operators.

 

[Jerry]

Theoretically then if any company could bid to operate a terminal then Delta and Virgin could bid for the contract to operate Terminal 5 and stick BA's charges up or mess them about to effect their operations ie cut the handling staff so turnarounds are slower effecting BA's service to it's customers and hence it's profits. I know in the US that many of the major airlines run individual terminals but it's usually the terminal or terminals and at smaller airports concourses they operate out of.
As an example at Portland Airport, Delta Airlines operates Concourse D, Alaska Airlines operates concourse's A, B and C and United operates concourse E and they provide things like the handling as well not just for themselves but for other airlines that use the airport as well.

 

[thunderchild]

Imagine if Michael O’Leary owned a terminal, he’d probably charge people to breathe in the air!

 

[Jerry]

Imagine if Michael O’Leary owned a terminal, he’d probably charge people to breathe in the air!

Check in fees, travelator fees, pay for the toilet, charges for a seat in departures, a fee to board the aircraft, he'd have a field day!

 

[Brummiegem]

Could get embarrassing for the terminal offering an inferior deal.
All airlines wanting to use terminal 1 and none for terminal 2.
Not a problem for BHX at the moment,but maybe one for the future.
How would it be policed and/or regulated?

 

[Coathanger16]

I think IAG are pushing this purely as a means to keep costs down for expanding LHR - if the terminals are having to compete with each other for airlines then keeping costs down will be a major factor in attracting airlines to 'your' terminal.

Theoretically then if any company could bid to operate a terminal then Delta and Virgin could bid for the contract to operate Terminal 5 and stick BA's charges up or mess them about to effect their operations ie cut the handling staff so turnarounds are slower effecting BA's service to it's customers and hence it's profits.

This is where the technicalities of this idea cause some issues. Would the CAA allow one airline to operate a terminal that they don't even operate from? BA employ their own handling staff so whoever operated the terminal wouldn't be able to interfere with that part at least.

The only way I could see it working is if the largest airline that uses a particular terminal is the one to operate it (i.e. BA/IAG would operate T5). The issue then is at say T2, there is no major overall airline - its Star Alliance - so who would operate it then?

As I said at the start, this is all about IAG trying to get LHR to keep costs down.