Recent reports on ORF, the website of Austrian national TV says that Vienna's International Airport (VIE/LOWW) and the connected consortium is not only the bidder offering the biggest amount of €, but also the best bidder as seen by the commission advising the government in privatization issues. So far, most of the time the government followed the recommendation of the commission.
The government of Slovakia will announce the decision in early January.
As of now it seems that the Vienna - Bratislava region is going to become a multi - airport system.
The report (unfortunately only in German) can be found here: http://www.orf.at/051222-94719/94720txt_story.html
Regards, Bernhard
BTS privatization
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Airliner_World
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Why so?Airliner_World wrote:If Vienna airport actually buys BTS, I would expect they will slow down the progress of BTS airport in favour of VIE. Not a perfect buyer/partner for BTS.
The price VIE is willing to pay is approx. six billion crowns, plus another eight billions will be invested in the infrastructure. This means whoever pays this amount will not be able to shut down BTS nor would it make any sense. Investing billions just for slowing growth down?
Hardly likely, especially not since there are interesting customer available: Around Bratislava are many car makers, furthermore the workforce is much cheaper and in any case: According to Austrian, Slovakian and European law as well as to documents signed during the bidding process, no one can shut down the airport...
Airlines decide where they want to go - and no company wanting to make money will not allow airlines to land in BTS.
Compare it to other urban areas - did Gatwick prevented heathro from growing? Or Orly vs. Charles de Gaulle? Or look at the greater NY area, or PHX, or ....
Infrastructure business does not work that way.
Regards, Bernhard
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Airliner_World
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Because BTS is taking traffic away from VIE.n5528p wrote:
Why so?
Maybe, but by slowing down the progress of BTS and possibly getting rid of airline incentives at BTS Vienna will recoup its investment via operations at VIE. They didn't invest millions in VIE so that another nearby airport could come along and provide an alternative by undercutting feesn5528p wrote:The price VIE is willing to pay is approx. six billion crowns, plus another eight billions will be invested in the infrastructure. This means whoever pays this amount will not be able to shut down BTS nor would it make any sense. Investing billions just for slowing growth down?
I don't recall saying that they would shut down the airport. I said they would get rid of the competitive incentives to airlines, thus the airlines would increase their services at VIE. Seriously, I don't think the Slovak government will accept VIE's offer, regardless of the amount they offered.n5528p wrote:Hardly likely, especially not since there are interesting customer available: Around Bratislava are many car makers, furthermore the workforce is much cheaper and in any case: According to Austrian, Slovakian and European law as well as to documents signed during the bidding process, no one can shut down the airport...
Great comparissons!!n5528p wrote:Airlines decide where they want to go - and no company wanting to make money will not allow airlines to land in BTS.
Compare it to other urban areas - did Gatwick prevented heathro from growing? Or Orly vs. Charles de Gaulle? Or look at the greater NY area, or PHX, or ....
Infrastructure business does not work that way.
Regards, Bernhard
You don't really think that you could compare these cities airports with VIE/BTS? 8O
All these cities you've mentioned are bursting because of the limited capacities, thats why they build more airports. In this case its just a matter of competition for the same passenger between two close cities. It's like DUS buying NRN, or BRU buying charleroi. Absolutely no comparisson.
The comparisons work out very well. VIE is already at its max. capacity during certain periods and no one knows if the third runway will ever be built. So the question is not which traffic will be prevented from going to BTS, but which traffic will be encouraged to go there. So this ensures that there will be traffic and that the company there will have work to do.
Furthermore it is a perfect alternate for VIE, which will connected through the CAT - you can check in at the city centre of Vienna and ride the train to either airport, thus bypassing the horrible (since nonexisting) road network. In the future people could arrive at one airport and transfer to the other, with little more trouble that changing terminals at ATL for example.
The airport cannot dictate where airlines have to go, though the airport can encourage airlines via incentives. Still said schemes have to be approved by the respective (Slovakian or Austrian) authority. Undercutting fees will not be that easy for every other customer, since the also want to earn money - especially when construction firms are part of a consortium..... they want to rebuild the airport and sell it again - they have no interest in running the airport. They want to earn money by building and next they want to sell and earn again.
As a matter of fact, the region VIE - BTS will be one economic region like Paris, London, New York, or Los Angeles, although not in the same magnitude of course. Still you have one region, the difference will be that there are always two authorities takeing part - which makes it difficult for the companies, but makes hardly no difference to the normal citizen or pax. Even more so since Slovakia is already in the Eu and will be in the Schengen area in some years.
Of course there is no doubt that the management of VIE also does this move for economic reasons and not only for operational ones. This is their job, but it's also the job of every other management in the bidding process. Since the investments in new infrastructure in BTS is cast in concrete, VIE would be moe than silly not to use it, since it's already built.
Regards, Bernhard
Edit: Sorry, I forgot: Of couse you are perfectly right, you did not mention that VIE would shut down. This term was used by me improperly, I wanted to point out that due to the service level they have to offer, they will attract traffic... I meant that BTS will not be a dead end.
Furthermore it is a perfect alternate for VIE, which will connected through the CAT - you can check in at the city centre of Vienna and ride the train to either airport, thus bypassing the horrible (since nonexisting) road network. In the future people could arrive at one airport and transfer to the other, with little more trouble that changing terminals at ATL for example.
The airport cannot dictate where airlines have to go, though the airport can encourage airlines via incentives. Still said schemes have to be approved by the respective (Slovakian or Austrian) authority. Undercutting fees will not be that easy for every other customer, since the also want to earn money - especially when construction firms are part of a consortium..... they want to rebuild the airport and sell it again - they have no interest in running the airport. They want to earn money by building and next they want to sell and earn again.
As a matter of fact, the region VIE - BTS will be one economic region like Paris, London, New York, or Los Angeles, although not in the same magnitude of course. Still you have one region, the difference will be that there are always two authorities takeing part - which makes it difficult for the companies, but makes hardly no difference to the normal citizen or pax. Even more so since Slovakia is already in the Eu and will be in the Schengen area in some years.
Of course there is no doubt that the management of VIE also does this move for economic reasons and not only for operational ones. This is their job, but it's also the job of every other management in the bidding process. Since the investments in new infrastructure in BTS is cast in concrete, VIE would be moe than silly not to use it, since it's already built.
Regards, Bernhard
Edit: Sorry, I forgot: Of couse you are perfectly right, you did not mention that VIE would shut down. This term was used by me improperly, I wanted to point out that due to the service level they have to offer, they will attract traffic... I meant that BTS will not be a dead end.
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Airliner_World
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