Manchester Airport operates in an increasingly competitive environment

Manchester Airport operates in an increasingly competitive environment and must differentiate itself not only.FinanceAll organisations must take expectant care in setting their financialtargets. If they are set too low then they allow for be readily achievedand full potential will not be reached.At present the economic regulation of airports is targeted solely atreducing the charges to airlines. Non-aviation income is not regulatedand the Airport, therefore, seeks to encourage the development of such receipts 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 andmarkets itself to become more attractive as the airport of choice.External factors Which Affect financial PerformanceNumerous factors influence the financial activities and the financialperformance of organisationsFive major external factors which displace Manchester Airport are1 Constant change2 Competitive environment3 Single till4 Government regulations5 stinting environmentChangeAlong with all other business the Airport operates in an environmentwhich is constantly changing. For example1 The freight market is explosive and can fluctuate annually. Reasonsfor this include1. competitor activity2. noise considerations freight only aircraft tend to be noisier and older3. technological development2 military man events can have an effect dramatic on both freight and passenger travel. For example1. Since 11 September 2001 the number o people dissolute 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 travel3. 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 as1. the general economic conditions2. foreign currency exchange rat es3. consumer confidence I tour operators4. competitor activities5. trades towards off-season holidays6. weather conditions1 the Airport must comply with regulations and legislation which issubject to change, for example1. The establishment of a single market inside the Euro... ...atement, which indicatesthe broad methodology used and is titled Basis of Opinion.Statement of According PoliciesPrinciples of account policies are declared in this statement.Details are provided of particular accounting methods used such asdescription.Trading AccountThe trading account forms the first part of the Profit and lossAccount. It is used to calculate the amount of gross profit or loss.Paying Wages and SalariesThe payment of wages and salaries for Manchester Airport plc staff ishandled by the Payroll Section which is part of one of the other assemblycompanies, Manchester Airport Aviation Service (MAAS), and is locatedon the Airport site. They hold information about all employees. Thisincludes1 Name2 Address3 National Insurance Number4 Starting Salary5 Salary ScaleFrom this information they are able to calculate the amount to be paidand deductions such as National Insurance payments, pension, tax andunion subscription.The majority of staff are salaried, that is their payments are basedon an annual figure, except are paid on a monthly basis. Some staff,mainly annual workers , are still paid on an hourly rate.