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Old December 18th 13, 05:53 PM posted to uk.transport.london
Graham Harrison[_2_] Graham Harrison[_2_] is offline
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First recorded activity at LondonBanter: May 2008
Posts: 278
Default Airport expansion: Heathrow runway 3 and Gatwick runway 2 constitute shortlist


"tim......" wrote in message
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"Graham Harrison" wrote in
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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




I haven't found that yet in the report or the appendicies. Can you please
point me to it?