Blogging from the Highlands of Scotland until I return to the Murcia region of Spain
in the Autumn for a month or so

'Fair and softly goes far' - Miguel de Cervantes

Monday, 30 June 2008

Spanish airports may be partially privatised

I read this a couple of days ago, stating that the Government was likely to propose partial privatisation of the country's 42 major airports and that Murcia-San Javier, very dependent on low-cost carriers from the UK and restricted in its operations because it must share the facility with military aircraft which fly from there, may be one of the most quickly affected by the need to adopt a new economic model to deal with the major economic changes which we are beginning to see happen. However, before writing about this here, I wanted to corroborate the story in a major Spanish-language publication and the story has now been reported in El Pais here.

The moves appear to be part of the fall-out of the crisis facing the Spanish economy, just as was the news a few weeks back that Ryanair may ground 20 of its aircraft this coming winter as part of its response to rising fuel prices (which the company has not hedged against, unlike some of its rivals), with more recent speculation about big problems for its profitability this year and next, which could quickly eat into its present massive cash reserves.

I suspect that those who have come to rely on relatively inexensive flight costs and on plentiful flights in the schedule, to make regular visits to and from their properties in Spain and their employment elsewhere possible, may have to adjust their expectations and their travel habits; flights are likely to become more expensive and less numerous and these factors may well exacerbate the existing downward pressure on property values caused by the credit-crunch. Oh joy - not.

0 comments - please add your own: