LCY so costly?
Back to Forum- This topic has 54 replies, 19 voices, and was last updated 7 Jun 2012
at 09:29 by MarcusUK.
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KeaneJohnParticipantI think that explains it LuganoPirate as I am on BMI Silver and even though it was LH metal and a Business Class ticket they asked what card I had if to determine if I should have got a voucher or not.
I now live in West Ham/Stratford on a direct bus and DLR to LCY and prior to that in Woolwich so know only too well the speed and convenience. I flew into LHR a couple of weeks ago from PRG with BA in CE and was home 2 hours after touchdown and that didn’t seem too bad but I will be looking forward to being at home 60 minutes before take off and home 15 mins after landing on my trip this week.
19 Feb 2012
at 20:20
MartynSinclairParticipantKeaneJohn – sounds like the perfect location for the new Forum lounge for LCY!
19 Feb 2012
at 20:37
DaytripperParticipantFrom where I live in London, LHR and LCY are equidistant by car. I fly to many short haul destinations offering British Airways services from both London airports.
I will always choose Heathrow over LCY because of City’s lack of business lounges.
London City Airport take note. Over the years, your flights have lost tens of thousands of Pounds worth of my business for this reason. I’m sure I’m not the only one who feels the same. Short check-in time or no short check-in time, it sounds like a weak excuse for not providing proper facilities for frequent flyers and business class passengers.
20 Feb 2012
at 13:00
Tete_de_cuveeParticipantIt is down to competition, as LCY is so small there is no outlet competition or direct head-to-head airline competition. It encourages profit maximisation behaviour which takes precedence over the need to provide examplary service when there is competition.
20 Feb 2012
at 13:58
RichHI1ParticipantHaving aproperty South West of London, LCY is not an airport I use often as the journey can often take 2 hours. On the few occasions I have used it I loved the smallness and the speed. As previously posted I think this is the USP. There should be as little as possible. THe minute you have lounges and shopping arcades the airport and airlines will impose long check in times to make more money.
I wish there an airport to the South West that was a small walk and board with no bally hoo. Maybe Farnborough can grow.20 Feb 2012
at 14:06
esselleParticipantNot sure from the preceeding posts which is the chicken and which is tne egg.
The airport itself is not under any obligation to provide a lounge/lounges; this is the decision of an individual airline. However, in the case of LCY, there is simply no room.
My view is therefore that the arilines should recognise that not having the ability to offer “normal” levels of service, which their loyal pax would take for granted at other airports, means they should provide some alternative to address this.
20 Feb 2012
at 14:30
MartynSinclairParticipantI am with RIch, LCY is a unique airport. Compare to other downtown city airports.
Its difficult to get to, except by public transport.
Lounge facilities, I think KeaneJohn has the best option.
Will definitely use for USA again, as long as the prices are kept below the £2k mark, which for me is the barrier when I am footing the bill.
20 Feb 2012
at 14:45
SwissExPatParticipantThinking aloud about who benefits from this situation at LCY.
The existance of galleries lounge at T5 (and all other such lounges) means that pax in these lounges get beverages for no cost. Some (not all) of the items consumed in these lounges would be purchased by these pax if the lounge did not exist.
Hence the retailers in the restaurant and Bars in LHR miss out on this revenue (all other things being equal) since it is provided in the lounge.
Not so at LCY, the retailers make this revenue and assuming they operate to a target profitabiity, the rent of their space from the Airport adjusts accordingly, i.e being higher than it would be if the sales volumes were less (i.e the case where a lounge exists).
Hence it is the Airport owner who ultimately benefits from the ‘higher’ rent from retailers (assuming perfect elasticity)
This might be mitigated by the affect of pax deciding not to use LCY because of the higher cost (of beverages) and this thread suggests that there are at least 2 people who would be dissuaded from using LCY for the above reason.
20 Feb 2012
at 16:26
DaytripperParticipantWho says that LCY has no room for business lounges?
Its terminal building has two levels. What is wrong with constructing a third? The constant building work at most major airports is testament to where there being a will there being a way.
20 Feb 2012
at 16:33
esselleParticipantSwiss ExPat
I think your logic may be flawed here. The rent paid by an airline to an airport owner for use of lounge space would far exceed any gain from higher sales of food and drink, so if space was available they would certainly create a lounge, even if it was multi use or pay on entry.
The point, surely, is that the airline is saving money by not paying for the space and running costs of a lounge. The passenger, on the other hand, is expected to fork out because the airline offers no voucher to compensate for the lack of lounge.
20 Feb 2012
at 16:39
SwissExPatParticipantHi Esselle
Yes, you have a point. The airline may benefit also in not paying rent for this space and also not having to stock the lounge with food/beverage and also the cost of staff to operate it.
The Airport owner would need to assess if it is better to get the higher rent from retailers or from the rent on the lounge. I have no feeling as to which would be better for them.
IN all cases, it is the frequent PAX (as opposed to the non regular Pax) who suffers!
20 Feb 2012
at 17:30 -
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