This past year has been a testing time for airlines . . .
According to the media one million Christmases were at risk if the British Airways strike had gone ahead. This was only avoided by a last minute court injunction and just when it all looked well, Scotland’s largest airline Flyglobespan went bust leaving thousands of people stranded.
So obviously this is bad news for tourists but how does this relate to property? Well thousands of us now own overseas investment property and it’s important to remember how critical the airlines role can play to these investments.
The fall of Flyglobespan has affected property investors in Spain, Portugal, Cyprus and Egypt although this is not the only way airlines affect investors.
Airlines’ profit margins remain tight and many airlines have reduced flights or pulled unprofitable routes all together in the last 18 months.
Ryanair has had disputes with a number of airports over their charges in recent years and in some cases this has resulted in them in reducing flights to that airport or withdrawing all together. Shannon, Basel, Blackpool and Fuerte ventura airports have all been affected in recent years.
When looking for a holiday let property, an airport within a two hour commute is fundamental to investment success. If your prospective holiday tenants are suddenly restricted in how they can visit your property this could have dramatic consequences on your cash flow. This could turn a profitable investment to a nightmare liability. Remember this is one of the extra considerations you need to make before investing abroad.
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