Airport expansion: Heathrow runway 3 and Gatwick runway 2 constitute shortlist
"Graham Harrison" wrote in message
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"tim......" wrote in message
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"Roland Perry" wrote in message
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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?
Yes I do
It's about selling the highest priced fares to people who insist in
direct flights,
and the cheapest ones to people who book early
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.
That's fine, but it's no reason to insist you need a hub so that you can
fill a plane that you have artificially made less full than it might have
been
You're both wrong.
as I already pointed out
the author of the report agrees with me so he must be wrong as well
tim
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