|Quoting lightsaber (Reply 47):|
For example, LHR direly needs frequency to stimulate connections. The airport is down to 30% transfer traffic. But will it expand?
Connections are down because BA realized it is far more profitable to use its finite slots to focus on *much* higher yield London O&D than connections. London is the most premium, highhest yielding O&D market **in the world**. Why would anyone want to stimulate lower-yielding connections unless they had excess capacity or spare slots to fill?
EK makes connections work (despite inherent lower yield) because of their geography, network, product; their huge, brave, and prescient bet on scale; and their COST advantage (partly driven by their scale, partly by cheap labour pool, and partly by favorable labor contract laws) which also gives them more ability to invest in Product. But all other things being equal, even EK would favor DXB O&D over connections if DXB had sufficient O&D volumes and at high enough yields.
[Edited 2013-03-14 07:14:18]