Good debate
on twitter the other night about Cardiff Airport.
“Get them to reduce their landing fees because
they are so expensive to fly from”.
Myth number
one – landing fees only make up 5-7% of the ticket price. Cardiff doesn’t have
high landing fees, they are competitive and is there is normally room to
negotiate the published tariff downwards.
“So why have so many
airlines e.g. BA and BMi Baby pulled out ?”
Not due to
landing fees, but more about the aggressive expansion and ambition shown by
Bristol Airport’s owners. Success breeds success is the moral of this story.
“Why is Cardiff
(Flybe) so expensive on the Glasgow Route compared to flying from Bristol”
It’s all
about competition. If two airlines are competing on the same route this will
create some downward pressure on pricing of tickets. Glasgow has two carriers
competing on that route from Bristol (or so I thought) but I was wrong.
Nonetheless
in an indirect way it is all about competition. Easyjet who operates the
Glasgow route benefits from some
economies of scale. Let me explain, by basing several aircraft at Bristol Easy
Jet benefits from reduced maintenance
and crewing costs whereas Flybe who only have a couple of aircraft based in
Cardiff don’t – so the ticket pricing reflects this.
Additionally,
Flybe operates a 70 seater plane compared to Easy Jet’s 140 seater on the
Glasgow route. So in addition to the economies of scale above, this means Easy
Jet benefits from higher passenger numbers and increased on board sales (passenger
yields) which means it can charge a much lower fare than Flybe on this route.
So whilst
this isn’t great news for Glasgow passenger who’d like to fly from Cardiff, it
does explain these price disparities.
At the end
of the day it is the airlines that set the fares and not the airport and only
when economies of scale come into play for the carriers or increased
competition on routes will we see these unfavourable comparisons disappear. It
does all come down to economics.
We are so
proud of Cardiff as a city and want an airport and air services that reflect
the vibrancy of our capital ………and city
regions (getting a bit ahead of ourselves there).
In the
meantime, as a pro Cardiff Airport Campaign, we would ask you to support your
local airport when it is financially viable and beneficial for you to do so.
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