Manchester Airport operates in an increasingly competitive environment

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Manchester Airport operates in an increasingly competitive environment

and must differentiate itself not only.

Finance

All organisations must take great care in setting their financial

targets. If they are set too low then they will be readily achieved

and full potential will not be reached.

At present the economic regulation of airports is targeted solely at

reducing the charges to airlines. Non-aviation income is not regulated

and the Airport, therefore, seeks to encourage the development of such

revenue streams to sustain the profitability of the Company.

To maintain its reputation as a quality service provider, therefore,

Manchester Airport has to ensure that it increases capacity and

markets itself to become more attractive as the “airport of choice”.

External factors Which Affect financial Performance

Numerous factors influence the financial activities and the financial

performance of organisations

Five major external factors which affect Manchester Airport are:

1 Constant change

2 Competitive environment

3 Single till

4 Government regulations

5 Economic environment

Change

Along with all other business the Airport operates in an environment

which is constantly changing. For example:

1 The freight market is volatile and can fluctuate annually. Reasons

for this include:

1. competitor activity

2. noise considerations – freight only aircraft tend to be noisier and

older

3. technological development

2 World events can have an effect dramatic on both freight and

passenger travel. For example:

1. Since 11 September 2001 the number o people flying across the North

Atlantic has fallen dramatically and this has had an effect in

business travel and some airlines.

2. the war in Iraq has also had an effect on travel

3. The SARS virus has had an effect on the number of passengers

travelling to the very east of the world.

1 Charter flights are also in a volatile market and are affected by

events such as:

1. the general economic conditions

2. foreign currency exchange rates

3. consumer confidence I tour operators

4. competitor activities

5. trades towards off-season holidays

6. weather conditions

1 the Airport must comply with regulations and legislation which is

subject to change, for example:

1. The establishment of a single market within the Euro...

... middle of paper ...

...atement, which indicates

the broad methodology used and is titled Basis of Opinion.

Statement of According Policies

Principles of accounting policies are declared in this statement.

Details are provided of particular accounting methods used such as

description.

Trading Account

The trading account forms the first part of the Profit and loss

Account. It is used to calculate the amount of gross profit or loss.

Paying Wages and Salaries

The payment of wages and salaries for Manchester Airport plc staff is

handled by the Payroll Section which is part of one of the other group

companies, Manchester Airport Aviation Service (MAAS), and is located

on the Airport site. They hold information about all employees. This

includes:

1 Name

2 Address

3 National Insurance Number

4 Starting Salary

5 Salary Scale

From this information they are able to calculate the amount to be paid

and deductions such as National Insurance payments, pension, tax and

union subscription.

The majority of staff are salaried, that is their payments are based

on an annual figure, but are paid on a monthly basis. Some staff,

mainly annual workers , are still paid on an hourly rate.

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