"Graham Harrison" wrote in message
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"tim......" wrote in message
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"tim......" 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
I haven't found that yet in the report or the appendicies. Can you
please point me to it?
It was repored in the newspaper, must have been the Telegraph as that's
the only one that I read at work
here it is
http://www.telegraph.co.uk/finance/n...hort-list.html
"Although two options have been short-listed for a possible third runway
at Heathrow, Sir Howard said the commission is not convinced that London
would be best served by one big hub airport"
tim
Firstly my "you're both wrong" comment applied to yield management.
Oh, it was far from clear