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  home > latest issue > Abstract: Multi-Hub Network Configurations - A Temporary or Permanent Outcome of Airline Consolidation?

Abstract

Multi-Hub Network Configurations - A Temporary or Permanent Outcome of Airline Consolidation?

The Review of Network Economics

Vol. 5, Issue 4 - December 2006, pp 421 - 434



Author
 
Jan-Christoph Düdden
WHU Graduate School of Management

E-mail: [email protected]

Abstract
  Ongoing consolidation in the European airline industry poses a threat to second-tier hub cities in terms of losing hub status and long haul routes. As airlines merged in the USA, it was often more efficient to close a duplicating hub and concentrate resources on the stronger one. This paper relies on a formal model to explore discrete scenarios for non-hub intercontinental connections. The results of the analysis show that a hub and spoke airline in a competitive environment can rationally preserve or initiate non-hub long haul routes, even going to the length of maintaining or building up an ancillary hub.

Keywords: airlines, airports, Europe, hub and spoke

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