Can someone please explain what are all the benefit into building a terminal for your airline carrier ? does it enhance the rankings? drive more traffic? Appreciate the feed back and commentary…
Terminals will reduce your passenger handling fees according to the % of capacity. 100% of capacity = 0AS$ handling fees. Image would also improve. The obvious negative is the cost. For medium term, I would say 2 - 5years the ROI is probably 50-50. Longer term yes if you have the cash then use it. Its an investment in the airline and increases its worth. Money in the bank is money thats not doing anything for the busines. I heavily invert in terminals. but then I take a very long term view.
Its the same with a/c ownership. At the end of the day its your choice there are plenty of successful airlines that operate with no terminals and always lease.a/c. As the Pink Floyd song says ‘its another brick in the wall’.
thank you. Appreciate the reply and guidance.