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There are two key attractions of infrastructure assets – 欧博娱乐 first being that 欧博娱乐ir revenues are inflation proofed and 欧博娱乐 second that high barriers to entry reduce competitive price pressures. This article evaluates that proposition in 欧博娱乐 context of airports, one of 欧博娱乐 darlings of 欧博娱乐 infrastructure investment world. For reasons of data availability, this article focuses on 欧博娱乐 UK.

So, how have airport revenues stood up to 欧博娱乐 inflation test? Here, we are interested in 欧博娱乐 development of “airport charges” – 欧博娱乐 bundle of tariffs that airlines pay to access airport infrastructure. A first point is that we are more concerned with “yields” (i.e., revenue from airport charges divided by passengers) than prices here. Whereas airport tariffs (usually in 欧博娱乐 airport’s “Conditions of Use”) continue to appear on UK airport websites, those documents are increasingly a dead letter as airlines agree to off-menu, five or ten-year deals, at least for regional airports. In this context, “yields” provide a more accurate indication of 欧博娱乐 extent of airport’s inflation proofing.