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• W2078989868 abstract "Much of the passenger air transportation market is served through hub-and-spoke operations with traffic being funneled through a number of major airports. This system has come under attack as protective of the airlines that center their operations on large hubs and is often as result, seen as not serving the public interest. This paper looks at some of the arguments that have been laid against the hub-and-spoke system. It does not offer a balanced perspective in that there are many problems with the system that are not touched upon here, but rather it seeks to question some of the economic logic that has been used to attack the hub-and-spoke structure. While the issues extend to many air transportation markets, the focus here is primarily on the US domestic situation. The impacts of the events of September 11, combined with the move into economic recession in the US that was already underway at that time, have led to serious financial difficulties for many of the World's airlines. Some, such as Midway in the US, immediately sought bankruptcy protection whilst others, such as Sabena and Swissair in Europe, took a little longer to fade away. Most of those that remain, despite combinations of financial assistance, have been struggling in the current economic climate. The subject addressed here is not directly concerned with this issue, although there are important overlapping longer-term linkages. Rather it looks at the structure of the airline networks that dominate the provision of air services. These structures still remain, although there are inevitable changes occurring. This paper was initially drafted prior to the recent changes that have taken place in air transportation markets. It retains much of the original material that was presented at the Amsterdam meeting, with some minor up-dating. The theme may seem less important now than at the time of the meeting, but this, I would argue, is perhaps a premature view. The combination of derived demand, relatively easy market entry, lumpiness in investments, etc., have resulted over time in dramatic changes in the fortunes of the sector and individual actors in it. There are, though, a number of recurring themes that pose interesting questions for the applied economist and one of these is the nature of efficient networks." @default.
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• W2078989868 date "2002-05-01" @default.
• W2078989868 modified "2023-09-27" @default.
• W2078989868 title "Debunking some common myths about airport hubs" @default.
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• W2078989868 doi "https://doi.org/10.1016/s0969-6997(02)00002-9" @default.
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