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Post by mrmoose on Feb 8, 2024 19:53:40 GMT
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Post by pug on Feb 9, 2024 8:03:31 GMT
That they’re using Gainshare is nothing new, although this is the first time they’ve confirmed which pot of Gainshare money they will be making available to this project. They also do not yet state how much of the £138million they will be allocating to DSA. They will need to borrow against the future payments so will likely be paying interest on that loan too, which is not favourable in this climate! They’re using their own GVA estimates as justification, much like they’re using myth and untruths as justification for their reasons to claim the airport is viable. The aviation consultants they got on board are not exactly industry leading, and then they have apparently written a shiny outline plan that has been green lit by KPMG, presumably based on projections plucked from thin air. They still need to agree a lease with Peel and they still need to appoint a private sector operator, but it’s looking likely that the private sector operator will be responsible for investing in the development of the site, the initial outlay as covered by Gainshare is for reinstatement costs and ‘up to 2 years of operating subsidy’. What I can’t get my head around is how a private sector operator would be able to justify investing in growing the business if they ultimately do not own the site, or are they coming in purely to run the place and bring business in with their contacts? I know there will be a long term lease agreed, but it’s still a risk. If they do reopen it, then I hope they get a genuinely experienced operator to run it and not this Middle Eastern consortium they were banging the drum for initially. I can however not see how they will get Peel to agree to anything that leaves them open and out of pocket, the Gateway East development is presumably being used by the council as leverage but without Peel's investment and Council support there will be no economic regeneration. My guess is, regardless of what happens, the site will be used for housing by 2036.
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Post by kirmingtonuser on Feb 9, 2024 20:01:55 GMT
A contributor to this debate on pprune has mentioned that DSA's routes contributed very little to the regional economy by attracting incoming tourists or providing good business-friendly links to commercial centres. To be fair, Flybe laid on quite a few business destinations during their time there with the E195. Of course these services ended abruptly when Peel's subsidy ran out. Contrast that with Humberside, which has had the link to the KLM Schiphol hub throughout and has even had short-lived competing links to other hubs such as Paris CDG (Air France), Brussels (Sabena) and Copenhagen SAS). In addition there had been the long-standing Eastern Airways/Genair/AirUK Heathrow link which unfortunately ended when the aircraft was priced-out by high landing charges.
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Post by pug on Feb 9, 2024 21:18:09 GMT
A contributor to this debate on pprune has mentioned that DSA's routes contributed very little to the regional economy by attracting incoming tourists or providing good business-friendly links to commercial centres. To be fair, Flybe laid on quite a few business destinations during their time there with the E195. Of course these services ended abruptly when Peel's subsidy ran out. Contrast that with Humberside, which has had the link to the KLM Schiphol hub throughout and has even had short-lived competing links to other hubs such as Paris CDG (Air France), Brussels (Sabena) and Copenhagen SAS). In addition there had been the long-standing Eastern Airways/Genair/AirUK Heathrow link which unfortunately ended when the aircraft was priced-out by high landing charges. All very true, but should DSA successfully reopen you can bet that KLM will very much be in their crosshairs. They didn’t move before, but who knows, this time things could be different? Doesn’t detract from what I posted previously however.
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