As
WHBM says, Gatwick is fine but just not well-suited to the sort of O&D traffic that might be using the route, even taking into account government traffic that might find Victoria/Gatwick more convenient than the City. It also makes sense to maximise the benefits of flying versus the train by serving an airport that is on the opposite side of London to Paddington. As for Ryanair, it lands much further away at STN at the same time AirSouthWest plans to land at LCY so will always be less convenient for business traffic, all others things being equal.
I look forward to supporting NQY-LCY. I'd be interested to know why LCY wasn't considered sooner. Was it an issue of capacity at LCY? I can't be the only one willing to pay a premium for flying from LCY and not LGW (I'm guessing it won't be £29 each way for long...) and those that aren't willing to pay more are welcome to trade down to LGW or STN instead
