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Old 26th Mar 2010, 08:51
  #508 (permalink)  
Feet on ground
 
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Randon Flyer

I think you'll find the BRS/EDI etc (the regions) to NYC have better yields that LGW-NYC. LGW-NYC has problems because for the business traveller there is a very high frequency alternative 40 miles up the road at LHR, so the to/from London business market goes there. The high frequency at LHR, driven by the business market, means there are far more economy seats there than the market really needs, as well as Air India etc with 5th freedom rights, this combination means that the leisure market fares from London are artificially low to try and fill this glut of capacity. That means that LGW services have minimal high yield business traffic, and very low yield leisure traffic, an unsustainable combination.

When you look at the regions, they don't have the proportionately high volumes of business traffic, but their leisure markets are stronger yielding because the alternatives for the leisure markets are the cost of getting to London plus the cheap fares available from there. So a good chunk of the leisure market in the regions would be prepared topay a premium (compared to LON leisure yields) to avoid making that journey to/from London. This logic applies to both passengers travelling to NYC as their final destination, and I'm sure in many cases beyond NYC in the States.
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