Originally Posted by
UnderASouthernSky
The issue is that airlines often make more money from straight O&D traffic to/from their hub than connecting over the hub (for a given ticket). TP probably require MAN-LIS bookings to supplement anyone travelling MAN-LIS-XXX to make the MAN-LIS route work. Losing a section of the O&D market to LIS will make the MAN-LIS less likely to be profitable.
Let's not forget, however, that some airlines are able to stimulate/grow a market by adding a new destination, rather than purely taking a share of the existing traffic flying from, say, the North West to that destination by current means (indirect, using other UK airports etc). JUst because there is low existing demand, doesn't mean that it will always stay as such... but it may require a punt from the airline, using historic data from another similar route, to take the plunge in the first place.
I can see your logic there. However, companies such as KLM operate out of a major tourist city and operate a major connections business. Normally their fares are priced to keep people off short haul returns out and back to AMS with the LCCs left to pick up the tourist traffic.
What I find more confusing is that TAP offer pretty rubbish outbound connections to Brazil and quite a few spots in West Africa with lengthy layovers in Lisbon.