HAL are enhancing T5
Oct 2, 2014, 12:20 pm
#106
Join Date: Jul 2008
Location: London
Programs: BA Gold, A3 *Gold
Posts: 887
Brussels has recently (well since I last flew from there) added a forced route through the shop. There's now a door blocking the traditional path for "authorised personnel only" which would save at least 30 seconds.
As I was still at the EU parliament a mere 55 minutes before my SN flight was due to take off yesterday, I was not impressed. Very tempted to "accidentally" knock several things off shelves as I barrelled from the EU exit post to the security at B gates.
As I was still at the EU parliament a mere 55 minutes before my SN flight was due to take off yesterday, I was not impressed. Very tempted to "accidentally" knock several things off shelves as I barrelled from the EU exit post to the security at B gates.
I even had the same thoughts as you on knocking things off shelves, there is a particularly flimsy perfume stand right on one of the corners they force you toward, it would be a terrible shame if someone were to knock that over as they rush to get a flight....
Oct 23, 2014, 11:32 am
#107
Join Date: May 2005
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I wish they actually provided services that would be useful at airports -- like a barber, or other things that one often wishes one had time to get done before leaving on a trip. I miss post offices as well (few and far between and usually landside if available at all in airports). A supermarket or place selling excellent fresh fruit, veg, cheeses, olives etc and breads and prepared foods to make it possible to assemble a good picnic would be great too. That used to exist at paddington but not sure if it's still there.
I wish they actually provided services that would be useful at airports -- like a barber, or other things that one often wishes one had time to get done before leaving on a trip. I miss post offices as well (few and far between and usually landside if available at all in airports). A supermarket or place selling excellent fresh fruit, veg, cheeses, olives etc and breads and prepared foods to make it possible to assemble a good picnic would be great too. That used to exist at paddington but not sure if it's still there.
Oct 23, 2014, 11:53 am
#108
Join Date: Jun 2009
Location: London, United Kingdom
Programs: British Airways Gold
Posts: 2,636
There's a Marks & Spencer's food in T5 arrivals landside that can be used by anyone
Oct 23, 2014, 12:04 pm
#109
Join Date: Jun 2009
Location: London, United Kingdom
Programs: British Airways Gold
Posts: 2,636
It could be argued that the crux of the problem is the regulatory regime. HAL's airport fees are regulated and there is a limit to the profit they can make from those (any extra revenue above forecast is given back to the airlines as a discount). Their other stream of revenue is from retail - as that part is not regulated they maximize it. Combine that with ownership from investors who want a return, then the terminal gets stuff with shops to the full.
Heathrow is regulated by the CAA under a single till model. This means that every pound made in retail revenues reduces aeronautical charges (landing fees etc) by a pound. Heathrow does not get to keep profits made from retail, in fact the CAA requires Heathrow to increase the retail revenues by certain amount in each regulatory period, with the benefits given to passengers. They have no choice.
Oct 23, 2014, 12:35 pm
#110
Join Date: Oct 2011
Location: City of Kingston Upon Hull
Programs: BAEC Gold
Posts: 4,940
Old post, but worth pointing out to the complainers that this is incorrect.
Heathrow is regulated by the CAA under a single till model. This means that every pound made in retail revenues reduces aeronautical charges (landing fees etc) by a pound. Heathrow does not get to keep profits made from retail, in fact the CAA requires Heathrow to increase the retail revenues by certain amount in each regulatory period, with the benefits given to passengers. They have no choice.
Heathrow is regulated by the CAA under a single till model. This means that every pound made in retail revenues reduces aeronautical charges (landing fees etc) by a pound. Heathrow does not get to keep profits made from retail, in fact the CAA requires Heathrow to increase the retail revenues by certain amount in each regulatory period, with the benefits given to passengers. They have no choice.
Oct 23, 2014, 12:54 pm
#111
Join Date: Oct 2012
Location: England
Programs: BA Lifetime Gold, UA Premier Platinum
Posts: 389
The CAA makes challenging assumptions about growth in retail revenue and sets airport charges on the assumption that these targets are met. If HAL fails to achieve these retail targets then it suffers the loss, as it can't make up the lost revenue by charging the airlines more. So HAL is under constant pressure to improve its performance from retail (and car parking/property etc). Under the current regulatory arrangements it has no choice.
Oct 23, 2014, 12:58 pm
#112
Join Date: Oct 2011
Location: City of Kingston Upon Hull
Programs: BAEC Gold
Posts: 4,940
The CAA makes challenging assumptions about growth in retail revenue and sets airport charges on the assumption that these targets are met. If HAL fails to achieve these retail targets then it suffers the loss, as it can't make up the lost revenue by charging the airlines more. So HAL is under constant pressure to improve its performance from retail (and car parking/property etc). Under the current regulatory arrangements it has no choice.
Oct 23, 2014, 1:34 pm
#113
Join Date: Oct 2012
Location: England
Programs: BA Lifetime Gold, UA Premier Platinum
Posts: 389
You are right that it is a crazy way to run an airport. The incentives for efficiency are very blunt, and the main effect is to encourage HAL to invest ever more in new facilities on which it is allowed a (pretty much) guaranteed return. Hence the reason why T5 cost Ł4.5bn when initial estimates were a fraction of that (and overseas airports do it much cheaper). But I'm afraid that the CAA is wedded to the current system, and the airlines are reluctant to consider any changes.
Oct 24, 2014, 1:45 am
#114
Join Date: Apr 2012
Location: not far from MUC
Posts: 6,620
I'm sure HAL would never even dream of doing anything like that, though.
Oct 24, 2014, 2:41 am
#115
Join Date: Jan 2011
Location: UK
Programs: BA Exec Club Bronze, Hilton Diamond, Virgin Flying Club Red
Posts: 1,257
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I wish they actually provided services that would be useful at airports -- like a barber, or other things that one often wishes one had time to get done before leaving on a trip. I miss post offices as well (few and far between and usually landside if available at all in airports). A supermarket or place selling excellent fresh fruit, veg, cheeses, olives etc and breads and prepared foods to make it possible to assemble a good picnic would be great too. That used to exist at paddington but not sure if it's still there.
I wish they actually provided services that would be useful at airports -- like a barber, or other things that one often wishes one had time to get done before leaving on a trip. I miss post offices as well (few and far between and usually landside if available at all in airports). A supermarket or place selling excellent fresh fruit, veg, cheeses, olives etc and breads and prepared foods to make it possible to assemble a good picnic would be great too. That used to exist at paddington but not sure if it's still there.
Oct 24, 2014, 3:19 am
#116
Join Date: Oct 2012
Location: England
Programs: BA Lifetime Gold, UA Premier Platinum
Posts: 389
The technical term is "regulatory gaming". It is a well known feature of infrastructure regulation, and the current regulatory approach only ensures that it continues to happen. Sadly the CAA's Economic Regulation department has taken a step backwards since its previous head left (he was open to radical changes) and airport regulation is now just a cost-plus system, which is guaranteed to result in gold plating and inefficiency.
Nov 22, 2014, 10:44 am
#117
Moderator, Iberia Airlines, Airport Lounges, and Ambassador, British Airways Executive Club
Join Date: Feb 2010
Programs: BA Lifetime Gold; Flying Blue Life Platinum; LH Sen.; Hilton Diamond; Kemal Kebabs Prized Customer
Posts: 63,850
Among the items on sale are coffee, tea, jam, marmalade, honey, own label whisky, cocoa, chocolate items, other confections such as Turkish Delights, and currently a few Christmas treats. Notably mince pies! Male staff in frock coats, poor things.
It is located immediately by the escalator to South Lounges, I don't know if this demographic has been targeted specifically, but.....
There are a number of other shops that seem close to opening in the vicinity.
Nov 22, 2014, 1:08 pm
#119
Moderator: Qatar Airways
Join Date: Jan 2014
Location: LHR/NCE/MIA
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And Fortnum & Mason is now open for business:
Among the items on sale are coffee, tea, jam, marmalade, honey, own label whisky, cocoa, chocolate items, other confections such as Turkish Delights, and currently a few Christmas treats. Notably mince pies! Male staff in frock coats, poor things.
It is located immediately by the escalator to South Lounges, I don't know if this demographic has been targeted specifically, but.....
There are a number of other shops that seem close to opening in the vicinity.
Among the items on sale are coffee, tea, jam, marmalade, honey, own label whisky, cocoa, chocolate items, other confections such as Turkish Delights, and currently a few Christmas treats. Notably mince pies! Male staff in frock coats, poor things.
It is located immediately by the escalator to South Lounges, I don't know if this demographic has been targeted specifically, but.....
There are a number of other shops that seem close to opening in the vicinity.
As such, the area around the South lounges escalators will become Mayfair.
Nov 22, 2014, 1:38 pm
#120
FlyerTalk Evangelist
Join Date: Aug 2000
Location: London
Programs: Hilton, IHG - BA, GA, LH, QR, SV, TK
Posts: 17,008
For an investment to enter the game, the justification for it must be accepted by the regulator. Of course the airport operator can spend its money as it wishes, but the investment will not increase the regulatory asset base unless Mr Regulator says yes. And it is that asset base which generates the (pretty much) guaranteed return.