There are (or used to be) lots of little airlines, so there would clearly be some typical arrangement for ticket sales from, say, Boston to Nantucket. As xfilesbell says, they may have had an arrangement with one or more other airlines at other airports -- for example, a small one based in Boston that didn't offer flights to Nantucket could sell Sandpiper tickets instead, and in return, Sandpiper might sell tickets for their connecting flights. Unless they could make it funny, they'd have had no reason to show us how that worked, but there's no reason to think that it couldn't have worked.
So there's no reason to feel stupid for not thinking of it!
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