In message , at 20:21:52 on Tue, 17
Dec 2013, tim...... remarked:
Intra UK transit pax are not the problem. It's the perceived need to
steal pax from other European carries at major European "hubs", that is

I was researching flights to SA the other day and it is 20% cheaper to
fly LHR-FRA-CPT with LH than it is to fly FRA-CPT

OTOH it is 20% cheaper to fly FRA-LHR-CPT with BA than it is to fly LHR-CPT.

So the reason that LHR needs to be a hub is because BA (apparently)
can't fill a plane from LHR to CPT without "bribing" pax from Germany
to fly via London.

You really don't understand yield management, do you?

It's about selling the highest priced fares to people who insist in
direct flights, then filling the remaining seats with people on feeders
from nearby. The result maximises revenue, even if some people get
cheaper flights as a result of agreeing to be those indirect passengers.

--
Roland Perry