Originally posted by: Lord Evermore
It's cheaper to have a bunch of flights go to a central hub, where passengers can be consolidated to use the plane space more efficiently, then to their destination. Otherwise you have to have an entire airline and airport staff as well as every single piece of equipment at every single airport, whether they get 10 flights a day or 100 flights a day.
Say there's a "doohickey" that every plane has to be serviced by. It ends up being cheaper to have 5 doohickeys at the hub, servicing 1000 planes a day, than to have 50 doohickeys at 50 airports, each servicing only 20 planes a day and the rest of the time sitting idle. The planes may have to fly a little farther in some cases to reach the hub, but it's still cheaper. And in some cases you end up flying way out of the straight-line path to your destination but it still ends up cheaper for the airline.