Business And Finance

Airport profits: ready to depart

WHEN Heathrow airport opened, in 1946, the only retail facilities were a bar with chintz armchairs and a small newsagent’s. The first terminal was a tent, a far cry from the four halls, resembling vast shopping malls, at the London airport today. Retail spending per passenger is the highest of any airport. This summer’s consumer crazes include Harry Potter wands ...

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Involuntary bumping seems to be a thing of the past

IF AVIATION had an astrological sign, 2017 would surely be the Year of the Bump. Most infamously, it was the year that a United Airlines passenger who refused to leave an overbooked flight in April was dragged violently from the plane. There followed airline policy changes to reduce involuntary bumping, a novel system to make bumping less inconvenient, and even ...

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The problem of contaminated air on planes

AT 30,000 feet the skies may be clear, but the oxygen certainly is not. Anyone who has wheezed his way through a long plane journey will know that cabin air is hardly pristine. Nearly all aircraft draw in air by way of the plane’s engine compressor. It is common for a small amount of oil to leak over the engine, ...

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Airlines want tighter control of alcohol sales in British airports

TRYING to stop Britons from boozing can be a forlorn task. Drinking has been woven into the nation’s culture for centuries, from the “loose-tongued” pilgrims of Chaucer to the apprentices who ran amok on London’s streets in the 16th century. According to Susie Dent, a lexicographer, English has 3,000 words for being drunk. Some take that list as a challenge. ...

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A firm that shares a name with its founder earns higher profits

A GOOD business name can be pricey. An entrepreneur looking for the perfect one can hire a naming agency to offer ideas, but that can cost tens of thousands of dollars. That may explain why many founders follow the example set by the American president and name their businesses after themselves. A recent article* by academics from the Fuqua School ...

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Why the world’s best footballers are cheaper than they seem

A head for figures FOR football clubs, August is often the costliest month, when they make vast bids for each other’s players. This year has been particularly lavish. On August 3rd Paris Saint-Germain (PSG), a French team, signed Neymar da Silva Santos Júnior, a Brazilian forward, from Barcelona for €222m ($264m), more than double the previous record price for a ...

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Chasing higher yields, investors pile into risky countries

WHERE can you find a 7% interest rate on a sovereign dollar-bond? You would have to take a time-machine to the mid-1990s to find such a yield on a ten-year American Treasury. Alternatively, you could slip back a few days to August 2nd and bid for the $1bn of five-year bonds sold by the government of Iraq. The yield was ...

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Investment in American infrastructure is falling

IT IS not a number to tweet about. President Donald Trump plans to plough $1trn of spending into America’s crumbling infrastructure. And a dearth of capital is not a problem: investors are keen on such assets. But investment seems to be falling. Government infrastructure spending in the second quarter fell to 1.4% of GDP, the lowest share on record (see ...

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