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Most Expensive Landing Slot Fees?  
User currently offlineAirCanada014 From Canada, joined Oct 2005, 1513 posts, RR: 0
Posted (7 years 3 days 15 hours ago) and read 5080 times:

Hello all


We've all have been talking about the most expensive landing fees in the past, which is Toronto YYZ now that took over the title from Narita NRT.. Would London LHR be the most expensive landing slot fees? We all know LHR is the largest airport serving International passengers and its hard to get landing slots there unless airlines sell their slots. We all know its very profitable to own slots at LHR. Or would Narita NRT be? I hope I'm making any sense..

8 replies: All unread, jump to last
 
User currently offlineBongodog1964 From United Kingdom, joined Oct 2006, 3588 posts, RR: 3
Reply 1, posted (7 years 3 days 15 hours ago) and read 5043 times:

LHR is among the least expensive. BAA due to their monopoly status are governed by a government imposed pricing structure based on increases at a level below inflation. thus in real terms LHR fees have declined by 1 or 2% annually for many years. This is why BAA turn their terminals into shopping malls, as subsidiary income is not taken into account.

User currently offlineUAEflyer From United Arab Emirates, joined Nov 2006, 1084 posts, RR: 1
Reply 2, posted (7 years 3 days 14 hours ago) and read 4948 times:

Quoting Bongodog1964 (Reply 1):
LHR is among the least expensive. BAA due to their monopoly status are governed by a government imposed pricing structure based on increases at a level below inflation. thus in real terms LHR fees have declined by 1 or 2% annually for many years. This is why BAA turn their terminals into shopping malls, as subsidiary income is not taken into account.

But LHR is most expensive as a second hand slots. e.g AA bought GF evening slot for couple of millions. BAA have nothing to do now with slots, they are all occupied


User currently offlineBongodog1964 From United Kingdom, joined Oct 2006, 3588 posts, RR: 3
Reply 3, posted (7 years 3 days 13 hours ago) and read 4839 times:

Quoting UAEflyer (Reply 2):
But LHR is most expensive as a second hand slots. e.g AA bought GF evening slot for couple of millions. BAA have nothing to do now with slots, they are all occupied

We are talking two totally different things here; the original question related "landing slot fees", which I misread to mean the fee paid to the airport operator each time they land. The amount airlines pay, if they wish to purchase a slot from another airline is a totally separate matter.

It is true that LHR slots change hands for huge sums, One reason for this is that the low landing fees make the slots worth even more money. If LHR landing fees pitched at around the maximum the market would bear, slots would theoretically change hands for less, as some airlines would move to airports with lower landing fees.

Apologies for not reading the question clearly enough.

[Edited 2007-09-18 14:50:36]

User currently offlineCornish From United Kingdom, joined Feb 2005, 8187 posts, RR: 54
Reply 4, posted (7 years 3 days 13 hours ago) and read 4799 times:

Quoting UAEflyer (Reply 2):
But LHR is most expensive as a second hand slots. e.g AA bought GF evening slot for couple of millions. BAA have nothing to do now with slots, they are all occupied

The record is a slot pair for 20 million USD at LHR - paid by Qantas if i recall rightly.



Just when I thought I could see light at the end of the tunnel, it was some B*****d with a torch bringing me more work
User currently offlineCommavia From United States of America, joined Apr 2005, 11632 posts, RR: 61
Reply 5, posted (7 years 3 days 13 hours ago) and read 4766 times:

Quoting Cornish (Reply 4):
The record is a slot pair for 20 million USD at LHR - paid by Qantas if i recall rightly.

According to this A.net thread, AA paid $30M for a peak-time morning slot pair from Gulf Air two months ago.


User currently offlineCornish From United Kingdom, joined Feb 2005, 8187 posts, RR: 54
Reply 6, posted (7 years 3 days 12 hours ago) and read 4659 times:

Quoting Commavia (Reply 5):
According to this A.net thread, AA paid $30M for a peak-time morning slot pair from Gulf Air two months ago.

I've only seen that on here and other forums - I've not seen any official confirmation or reporting of it anywhere. Its very likely however, with similar levels surely to come as others rush for LHR slots as they become available.



Just when I thought I could see light at the end of the tunnel, it was some B*****d with a torch bringing me more work
User currently offlineAirbazar From United States of America, joined Sep 2003, 8375 posts, RR: 10
Reply 7, posted (7 years 3 days 11 hours ago) and read 4579 times:

Quoting Bongodog1964 (Reply 3):
We are talking two totally different things here; the original question related "landing slot fees", which I misread to mean the fee paid to the airport operator each time they land. The amount airlines pay, if they wish to purchase a slot from another airline is a totally separate matter.

I understood the question the same way you did initially. I didn't realize that YYZ was slot restricted to begin with so why would you have to pay for it? And for NRT, aren't slots allocated to airlines instead of traded on the open market? So the question makes absolutely no sense as far as slot allocation goes. The original question only makes sense in regards to landing fees.


User currently offlineRivet42 From United Kingdom, joined Aug 2005, 818 posts, RR: 1
Reply 8, posted (7 years 3 days 6 hours ago) and read 4321 times:

The confusion is in the title - "... landing slot...". As has been suggested above, landing fees are completely separate to slot fees - in fact, Im not sure there is any such thing as a 'slot fee'.

Several threads on this forum have explained how, at LHR in particular, slot pairs - i.e. a landing, and a take-off - are allocated to an airline, who may subsequently trade them for whatever the market will pay. Airlines don't technically 'own' these slot pairs, therefore they are not officially sold, but the right to use them is exchanged for the price paid.

Landing fees are charged by the airport operator each time an aircraft lands, and may vary by aircraft type.

The thread starter might wish to clarify exactly which fees he/she is referring to.

Riv'



I travel, therefore I am.
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