Economies of scale v big hub costs
xyz_pilot,
Would Los Angeles fit your profile of "very big market, and substantial leisure demand". Or is there already too much choice from LHR - with Air NZ +BA, VS & UA?
How do the economics of transfers through expensive hub airports (surely double the handling fee for transit pax?) compare with lower charges but smaller aircraft at regional airports?
For example, when I went BHX to EWR earlier this year, there was little below £270 to go direct with CO, whereas LHR direct prices were starting at around £180. Now we're in peak season, I've sometimes seen prices from BHX lower than prices from LHR. I would imagine a 757 would guzzle more fuel per pax than a 747-400, but I'm no expert on this.