Some months ago I wrote a blog post on "Testing the numbers, on the fly". Well, yesterday I was flying - literally - out of Frankfurt and saw a sign that said, "New A Plus Pier in Terminal 1 under construction". It went on to say that the pier could handle 6 million passengers a year and was 180,000 square meters in floor area.
It's interesting to know this ratio of passengers to floor area, I thought.
Then I thought, hmm... does this ratio make financial sense? So I began to guesstimate.
Let's say that real estate here is about the cost of real estate where I live. At bulk discounted rates, it might be 100 dollars per square foot, plus minus a bit. Or 1000 dollars per square meter approximately.
So the new pier is 180 million dollars in investment. 30 dollars per passenger.
For a payback period of 5 years, you need 6 dollars per passenger per year - probably taken out of retail concessions in the West. But Indian airport retail doesn't do well yet.
Well, 6 dollars is equal to Rs. 300. Then it hit me - the airport tax at Delhi airport used to be Rs. 300. And I smiled.
Of course the calculations won't be exact. But it is always fun to get close.
It's interesting to know this ratio of passengers to floor area, I thought.
Then I thought, hmm... does this ratio make financial sense? So I began to guesstimate.
Let's say that real estate here is about the cost of real estate where I live. At bulk discounted rates, it might be 100 dollars per square foot, plus minus a bit. Or 1000 dollars per square meter approximately.
So the new pier is 180 million dollars in investment. 30 dollars per passenger.
For a payback period of 5 years, you need 6 dollars per passenger per year - probably taken out of retail concessions in the West. But Indian airport retail doesn't do well yet.
Well, 6 dollars is equal to Rs. 300. Then it hit me - the airport tax at Delhi airport used to be Rs. 300. And I smiled.
Of course the calculations won't be exact. But it is always fun to get close.
3 comments:
Respected Sir,
It is indeed a nice positive blog and I totally agree with your statement about new India..
Thank you,
Divyesh Shah.
Thanks for sharing the blog...
Personally speaking your blog always help me to see the simple things with a different angle, whether it is testing the numbers on the fly or the diwali cracker blog. I loved each of them and also try to analyse things in the different way.
Not always i am accurate, but i am happy that i am among those who are doing this.
Thanks
Hello Sir,
This is unbelievable. Thank you for showing this direction, probably I would have never given a thought to it. It's really amazing.
Regards,
Proton Robin Singh Vasu (Fall' 09)
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