So let's think about this for a nanosecond....
BACX pullout of BHD, BE downsize at BHD, EZY sell cheap tickets to LGW what does this tell us?
Der....the business models are changing and the markets are shifting. Low cost is what short haul pax seem to want.
£3.50 to LGW - don't look a gift horse in the mouth!
It's probably because the economics of flying a 737 vs a BACX J41/ATP/146 (infact anything) are close but in each case you get a load more capacity for your money on the seven three.
Ryanair are running network cost average of 5 US cents (3p) a seat kilometre, EZY/GO around 7 cents (4.5p) while the flags inc. BA start at about 11 cents (7p). This info was before the recent oil price hike - however...
So watch out for more retrenchment. If BE got a new deal with Shorts at BHD it wasn't on higher charges was it? They must be nearly as low as BMI who will be feeling the effect of new jet traffic into LGW and continuing traffic into LTN and STN. Just how Heathlow (sic) can they go?