Manchester Airport operates in an increasingly competitive environment

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 â€Å"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... ...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.