COMMENT Rocket science is hard to practice


Now and Then... T


he beauty of working for a title with as decorated


a news ‘splash’ history as TRBusiness or [in


correct Now & Then guise] The Duty Free Business, means that for a change, the well- worn expression ‘the benefit of hindsight’ comes well and truly in handy for a change. Twenty years ago this month, the lead


focused very acutely on an £115m ($187m) investment into mammoth retail expansions at London Heathrow and Gatwick airports from the now de-listed BAA. The retail space at Heathrow Terminal


3 was destined for a 4,645sq m extension, with another 4,645sq m to be added at Gatwick North Terminal at an estimated cost of £60m ($97.8m) and between £25m to £30m ($40.7m to $48.9m), respectively. Heathrow’s plans included a splitting


of the security zone into two to enable 60% of traffic to flow into duty free, with 40% transiting through the transfer shop, according to Brian Collie, BAA’s then Group Retail Director. The effect was to create a shopping


epicentre in the transformed security zone. Likewise, the Gatwick plan set out to provide the North Terminal with its very first major lifestyle area, blending food and beverage and retail for specific customers to that lounge. Twenty years on and talk regarding


Heathrow irrevocably seems to centre on a slightly different expansion. One that centres on its plans for a new north-west runway, following the launch of a recent public consultation. As this magazine went to press, hub carrier British Airways’ owner IAG has called for an end to Heathrow’s ‘monopoly’ on terminal development to pave the way for third parties to operate its terminals – and I hasten to add likely an entirely different future proposition from what BAA had envisaged back in February 1998. TRBusiness was not able to harness


immediate comment on what the future travel retail landscape could look should a move go ahead at the time this column went to press. In a statement, IAG made clear ina submission to the Civil Aviation Authority (CIAA) that Heathrow’s expansion provides


58 TRBUSINESS


a ‘great opportunity’ forindependent companies to design,


build and run commercial facilities like terminals, with the added competition providing better facilities in a more cost- effective manner, while mitigating against a rise in passenger charges. Willie Walsh, IAG chief executive, said:


“Heathrow’s had it too good for too long and the Government must confirm the CAA’s powers to introduce this type of competition. This would cut costs, diversify funding and ensure developments are completed on time, leading to a win-win for customers. “Heathrow’s already reassessed its


expansion plans when faced with a new potential developer. Our proposal will ensure it continues to focus on cost control, something it has been reluctant to do in the past.This is not rocket science. Most major US airports have terminals owned or leased by airlines and there are European examples at Frankfurt and Munich airports. There’s absolutely no reason why this cannot happen at Heathrow. “With more passengers and the


introduction of internal competition, the airport’s charges should go down. If they remain at current levels we, along with other airlines, support a price cap to ensure they cannot rise and have written to the Transport Select Committee to highlight this”. «


TRBusiness is independently and equally owned by Nigel Hardy and Janice Hook. It is available on a subscription package basis only and is published by TRBusiness Limited and distributed by air mail each month.


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FEBRUARY 2018


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