Sunday, August 13, 2006

Naked Sedated Airline

* via Rimone: "‘I guess it’s only a matter of time before Naked Sedated Airline gets going.’" and ‘When lip gloss is outlawed, only outlaws will have lip gloss…’

* in other news, i once worked in/for the airport industry. it's actually quite fascinating for those of you interested in business, and strategy and all that. (ummm - ok - so i'm all alone on that front.) In any case, from memory, airports make about something like 25% of their money from stuff related to air travel (landing fees and whatnot), another 20% for terminal leasing, approximately 30% from retail concessions, and approximately 15% from parking - and a bit left over for advertising and other assorted revenue earners. (the american experience is a bit different for some weird regulatory reasons). I can't remember what % of retail is at the front end of the flight vs the back end - but you can easily see that airports will go broke quickly if they can't sell stuff.

further, many (non-am) airports have been privatised in the last decade - largely debt-financed. the cashflow to pay the debt comes mostly from the retail side - and 'rent' is literally a percentage of sales.

ten bucks says that the airport lobbies will soon 'convince' governments around the place that it's actually safe for people to carry stuff on planes again.

No comments: