Stansted sell-off at risk from no-frills demands

by Alex Brownsell, marketingmagazine.co.uk 03-Mar-09, 12:40

LONDON - Pressure from budget airlines to cut check-in and boarding times at Stansted may damage any attempt by owner and operator BAA to sell the airport.

With passenger numbers down and short dwell-times limiting the benefits for retailers, aviation experts say that Stansted faces a crisis.

Last week it was announced that the building of a second runway at the airport has been delayed until 2017, while BAA confirmed passenger numbers fell by 6% in 2008.

Uncertainty over Stansted's future is also hindering its long-term development, with the Competition Commission expected to insist BAA sells the airport along with Gatwick.

Michael O'Leary, chief executive of budget airline Ryanair, is advocating a no-frills second terminal for Stansted, minus check-in desks and retailers.

The transformation of the airport into a 'glorified bus station' might suit O'Leary, but Virgin Atlantic marketing director Paul Dickinson argues the case for more luxurious airport surroundings. 'Long-haul carriers are oriented toward giving a great experience, and the airport experience is part of that,' he said.

Alasdair Lennox, design director at branding agency Fitch, which worked on several retail projects at Heathrow's Terminal 5, believes the types of retailers at airports such as Stansted will change over the coming years. 'It is never going to compete with the flashiness of Heathrow, but if people are spending less on flights they are going to want to treat themselves. It opens up opportunities for different kinds of brands,' he said.

Stansted has suffered from airline bankruptcies, including those of business carriers Eos and Maxjet, and received a blow last year when American Airlines pulled its route between Stansted and New York JFK.