Financial Times: Continental Paid Record $209 million for LHR Slots
Mar 3, 2008, 3:34 pm
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Financial Times: Continental Paid Record $209 million for LHR Slots
Edit: Thread title should read $209 Million
Apologies is this has already been posted, ran a search but came up with nothing.
"Continental pays record for Heathrow slots
By Kevin Done, Aerospace Correspondent
Monday Mar 3 2008 14:55
Continental Airlines (NYSE:CAL) of the US has paid a record $209m for four pairs of take off and landing slots at London Heathrow airport.
The airline disclosed the price paid for its entry ticket to Heathrow in a filing to the US Securities and Exchange Commission and said it was seeking more slots at the airport...
...Continental Airlines said in its filing to the SEC that it had paid $116m for summer season slots at Heathrow and would pay a further $93m this year for slots in the next winter season..."
Seems like an awful lot of money for four Heathrow flights. I'd be curious to know what some of the other airlines (DL, NW, US...) have been paying for slots.
Apologies is this has already been posted, ran a search but came up with nothing.
"Continental pays record for Heathrow slots
By Kevin Done, Aerospace Correspondent
Monday Mar 3 2008 14:55
Continental Airlines (NYSE:CAL) of the US has paid a record $209m for four pairs of take off and landing slots at London Heathrow airport.
The airline disclosed the price paid for its entry ticket to Heathrow in a filing to the US Securities and Exchange Commission and said it was seeking more slots at the airport...
...Continental Airlines said in its filing to the SEC that it had paid $116m for summer season slots at Heathrow and would pay a further $93m this year for slots in the next winter season..."
Seems like an awful lot of money for four Heathrow flights. I'd be curious to know what some of the other airlines (DL, NW, US...) have been paying for slots.
Last edited by coolbeans202; Mar 3, 2008 at 3:35 pm Reason: title
Mar 3, 2008, 3:43 pm
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Was it worth it? With everyone going in Id expect fares to stay low. and with BA having a better Biz product and EOS and SilverJet still flying, I would think CO wasted their $$$
Mar 3, 2008, 3:46 pm
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That's a huge pile of money! WOW!
Mar 3, 2008, 3:52 pm
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Mar 3, 2008, 3:54 pm
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its a lot of money, and quite frankly I don't see the real value of Heathrow.
now that everyone can play in that pond, the price premium will seriously weaken.
now that everyone can play in that pond, the price premium will seriously weaken.
Mar 3, 2008, 3:56 pm
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Portions of the post that previously appeared in this space have been deleted. I would provide you with a reason why, but doing so would likely be against the TOS.
Last edited by uncertaintraveler; Dec 18, 2008 at 1:50 pm
Mar 3, 2008, 4:00 pm
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that's a lot of passengers just to hit break-even.
having said that, they must have discounted cash flow (DCF) financial models that show that it was a worthy investment.
having said that, they must have discounted cash flow (DCF) financial models that show that it was a worthy investment.
Mar 3, 2008, 4:01 pm
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It's a prestige thing, methinks. I have heard people ay that CO wants LHR, but I really can't justify ever going in there, IMHO. I don't see the value of the slots if there isn't a feeder airline to connect with -- especially with this price tag! 
Mar 3, 2008, 4:02 pm
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At least it's refreshing to know that passengers aren't the only ones getting totally robbed by heathrow... 
Mar 3, 2008, 4:13 pm
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The only advantage I can see to LHR service is that there are onward connections on Skyteam carriers available. Since LHR isn't a hub for any Skyteam carriers I can't see that as being terribly valuable. Nonstop flights are available from the US to true Skyteam hubs, and onward flights from LHR to other cities will require transiting LHR and a hub.
Mar 3, 2008, 4:27 pm
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If they are part of the grandfathered slots, likely very little. If they resold some BMI slots, BA still did nicely. Back in '07, BA paid BMI 30M pounds for 51 slots per week. Although whether these were "prime time" ones is another question.
Mar 3, 2008, 4:36 pm
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After having read "Dirty Tricks", I would be surprised if BA were even utilizing the slots. If there's a way to not physically take off or land an aircraft and hold on to the slot, BA is likely using it.
Mar 3, 2008, 4:40 pm
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But it's not just the connection possibilities: London is one of the, if not *the*, largest premium O&D markets in the world. There's plenty of money to be made, and fairly or not, LHR attracts a fare premium that LGW does not.
Mar 3, 2008, 4:44 pm
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March 07
The British Mediterranean Airways (BMed) round-trip flights between London's Heathrow and Cardiff International have been taking off six days a week since October.
They have not appeared on departure or arrival boards, none of the 124 tickets were sold and all passenger seats remained empty.
They have not appeared on departure or arrival boards, none of the 124 tickets were sold and all passenger seats remained empty.
Mar 3, 2008, 5:58 pm
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That's my point. BA gets the slots for free because they got them for free in the past. That's some fine logic there.