Airline Networks: A Comparison of Hub-and-Spoke and Point-to-Point Systems

Gerald N. Cook · Jeremy L. R. Goodwin

68 citations0/0 files storedThe Journal of Aviation/Aerospace Education and Research

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Aviation Industry Analysis and Trends Air Traffic Management and Optimization Transport and Economic Policies

Abstract

The disparity between the relative success of low-cost and network carriers since 2001 has often been attributed to the difference in route system architecture. This paper compares the economic and operational characteristics of point-to-point and hub-and-spoke route systems. It also argues that the emphasis placed on route structure obscures other differences in business models. Although U.S. low-cost-carriers are frequently characterized as operating point-to-point systems, few actually do so. As network airlines simplify their domestic products and the low-cost-carriers diversify theirs, the distinction between the two is rapidly fading.

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References

2003Competition between network carriers and low-cost carriers—retreat battle or breakthrough to a new level of efficiency?2002Debunking some common myths about airport hubs 2005Regulation, competition and network evolution in aviation

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