I want to sign a contract for a passenger terminal and I don’t know how!
Hi there,
First, the airport where you need the contract has to have built a private terminal.
Second, the terminal needs to have available units.
Third, the terminal need to have offers for the available units. Only then you can sign a contract.
You can find out all of this at the airport page, under "ground services" tab.
Success!
What’s more; you do not need to have signed any contract for handling if you don’t want to, AS will handle your PAX anyway and automatically.
Which will cost you 11$/pax and the quality is 1. The quality of terminals is taken into account when calculating the rating (not directly but it matters). So, in general, if you have the possibility to sign a contract, you should do it!
Hi,
terminals are listed under product factors, so they should have a direct effect on your price performance ratio and ORS rating.
But I have a route where I use a standard 1 star terminal in one direction, and a 5 star terminal with jetway in the other direction. The other product factors (price, type of seats and on-board service) are identical. I checked the ORS and both flights have exactly the same rating.
Perhaps I overlooked something. If someone gets a different rating for flights with and without 5 star terminals (on the same route), please inform us.
Jan
If you lower your prices, at a certain point you will see that the 5* terminal route will still keep a "perfect" rating while the other is going down.
Hmm… do you mean raise the ticket price ?
Jan
Sorry, you’re right… I meant raise your price…
Hi,
As my ORS rating was 100/99, that is exactly how I tested it. I raised the price of the return flight by 10 dollar, and the ORS rating went down. Maybe I raised the price too much 
Anyway, I shall do the experiment again. I increased both prices. If neither of the flights has a rating of 100/99, perhaps a difference will be visible. If the ORS in Tempelhof works, the result should be visible tomorrow.
CAI-LGW with standard terminal and price for economy ticket is now set at 355 dollar.
LGW-CAI with 5 star terminal plus jetways, economy price is now set at 360 dollar.
Jan
Does new land ever become available for development, or are you just out of luck if you come late to the game?
Thanks
Which land do you expect to become available?
EDIT - Sorry, misunderstood …
No, there won’t be additional land. But there are often some airlines ceasing operations and the buildings are demolished and the construction land will be free again.
How’s it working?
Hi,
Sorry for the delay. The ORS is not always available 
Anyway, it does make a difference… I can charge 355 dollar on the outbound flight, and 360 dollar for the return flight, and still get the same ORS rating.
Mind you, I don’t know if the bonus is fixed at 5 dollar. The quality of the terminal is put in the balance, so I guess different routes will give different results. And 5 dollar per passengers is certainly not worth the investment, but it helps to pay back the cost if you build your own terminals.
Jan
If you own your own terminal, how much does it cost per pax. to operate it? AYS is 11$, most alliance "friend" rates tend to be around 7$, is that break-even (not counting capitol reinvestment)?
Thanks.
I don’t think you should notice any difference based on which direction you fly. Let me explain.
Let’s say you want to fly from JFK to CDG. Let’s also say you have built/contracted a terminal in CDG. Your pax get on theplane normally in jfk the fly to cdg. In cdg they deplane in the 5* terminal. Now when someone wants to fly back to jfk they board the aircraft, in cdg, in the 5* terminal then deplane in jfk normally.
Either way on one end of the trip your pax is getting the nice terminal. The overall quality of the flight is the same.
To test this your best means would b to pick two destinations equal in distance. Place the same aircraft with the same seats and same costs on that route. I’m just making one up but say JFK-SEA(no idea on real distances). This way you’d have one route (jfk-cdg) with a 5* terminal and one without (jfk-sea). The one with the terminal should have a higher ors rating in theory.
This would also lead to believe that if you are going to build a terminal it would be better to do so in JFK as two destination flights would receive theadded luxury of the terminal instead of just one.
I wonder how much of an ors boost you actually get though. Of course there is the $11 per pax you save as well.
Hi,
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I tested it and posted the results in this very topic. The flight that departs from an airport with a 5 star terminal gets a better rating. The flight that arrives at the airport with a 5 star terminal gets no bonus.
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You get no “boost”. Well, unless you call a 5 dollar difference on a 355 dollar ticket a boost
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A terminal can handle 2000 passengers per week. If more passengers leave from the same airport, you have to expand the terminal.
If you look at terminals as an investment, they are a waste of money…
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it takes two years to pay back the investment;
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you cannot sell a terminal. Once you have built it, you are stuck with it;
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you even have to pay extra money to demolish it.
Jan
What is the cost differential for a private terminal? We know passenger handing is 11$AS per passenger. I think I read that when you build a terminal your handling costs are less than 11$AS per passenger. Is that true? What is that number? Maybe a $5 fare bump is not worthwhile, but maybe a $5 fare bump and a $5 cost savings is?
I am not certain… But I’d like to evaluate my own situation… Thanks!.
Hi,
the cost of a 5 star terminal with jetways is 2.8 million dollar. Let’s say you save 10 dollar per passenger (cheaper handling plus fare bump). A terminal can handle 2000 passengers per week, so you earn 20.000 dollar per week.
If you invest that same 2.8 million in (the leasing deposit of) a plane, your weekly profit can be 20 times more.
From an investment point of view, terminals are rubbish. Build them if you like to own your own terminals, or if you don’t want to expand your fleet anymore. And in that is the case, buying used planes is a better investment.
Jan
Edit: terminals only offer benefits to departing flights.