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Highest Revenue Routes

Discussion in 'questions. answers. conversations.' started by Woodrow, Aug 16, 2019.

  1. Woodrow

    Woodrow Active Member

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    #1
  2. OCTinPHL

    OCTinPHL Active Member

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    Both.

    First, IAG which owns BA is the 6th largest airline / airline group in the world by revenue. BA connects just about everything, if not everything, through London. So that right there drives a ton of revenue. BA only has one hub (well, connecting hub. It drives a lot of tourist traffic through Gatwick). Just because of geography the US 3 each have more than one international hub.

    Second, London is one of the largest financial centers in the world - along with in no particular order NYC, Frankfurt, Hong Kong, Shanghai, Paris. And others. But London is one of the largest; it is closest to NYC in terms of geography. Historically, with Hong Kong a British territory until 1997, the trade between Asia and Western Europe often went through London.

    Finally, it is also an extremely large city. It would be the 3rd largest in North America behind Mexico City and NYC. It is a massive tourist destination as well. Add in premium fares for banking and consulting, and perhaps law as well, between London and NYC, and it makes sense.
     
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  3. Woodrow

    Woodrow Active Member

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    Thanks for the great explanation. It was interesting to see 50% of the highest revenue flights are to London.
     
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  4. OCTinPHL

    OCTinPHL Active Member

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    Banking. It's all about banking.
     
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    Woodrow likes this.
  5. Gia

    Gia Well-Known Member

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    Wonder if this will change after Brexit? At least the banking part?
     
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  6. Woodrow

    Woodrow Active Member

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    I guess that might be dependent on an exit, with or without a "deal".
     
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    Rob in Miami likes this.
  7. OCTinPHL

    OCTinPHL Active Member

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    I think Brexit has already been factored into a lot of decisions. And also used as an excuse: https://onemileatatime.com/la-compagnie-london-flight-canceled/

    London may suffer a hit vis-a-vis banking, but it will still be incredibly important. And Heathrow is going to remain a connecting hub regardless.

    If my friends' law firm (an Anglo-German-French firm) is to be believed, most of their clients (on both sides) have been working on contingencies since '16/'17. Though, I was told yesterday that for the first time in a survey of their clients over 50% (57% to be exact) expected a no-deal Brexit and have planned accordingly.

    Also, don't forget, the Russian oligarchs still need a place to hide their money from Putin, and London real estate is where it's at. :D
     
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  8. David W

    David W Well-Known Member

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    I dont think I'd mind if some Russian oligarchs decided to hide their money in a bank account and mistakenly put my name on it. :p
     
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  9. Woodrow

    Woodrow Active Member

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    As long as they come looking for it later.
     
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  10. Gia

    Gia Well-Known Member

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    I think London will take a big hit with or without a deal. Perhaps a shift to Frankfurt and/or Paris. I have a German friend who is an investment banker and has been living and working in London for years and he anticipates being moved back to Frankfurt after the dust settles and says he knows of 10,000 jobs that may also shift. One way or the other, it should be interesting.
     
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  11. Gaurav

    Gaurav Well-Known Member

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    I think this is the most likely outcome. Firms will move operations to the mainland Europe, leaving behind smaller offices.
     
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  12. Gaurav

    Gaurav Well-Known Member

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    Careful what you wish for @David W, you might suddenly radioactive material showing up in your mailbox ;)
     
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  13. OCTinPHL

    OCTinPHL Active Member

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    I don't disagree with you and Gia - I do think, however, that part of the hit has already been taken. Instead of growing offices in London in the last 2 or 3 years, firms just started hiring more people in Frankfurt and Paris. Particularly Frankfurt. And Amsterdam will see some growth. Perhaps layoffs in London will happen; perhaps some people will be shifted. (Though I think those that would have been already have been - wow, horrible sentence.) Most likely is that growth occurs in Mainland, though London will retain a lot of influence, but it will wan over time.

    I am willing to bet, however, that London and LHR in particular maintains it position as a global hub with tons of premium traffic.
     
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  14. Rob in Miami

    Rob in Miami Active Member

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    Yes, Wall Street Journal is stating that Paris real estate will benefit from Brexit (simply).
     
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