Abstract
Kualanamu International Airport is the busiest airport in Sumatra. In 2015, it served 8 million passengers and 41.6 thousand tons of goods for international and domestic flights. Hub-spoke networks are optimized when generally having a transport efficiency of at least 49-52% as well as providing air service in a wide geographic area and to many destinations. The aim of this study is to analyse the hub-spoke airport networks based on the Herfindahl-Hirschmann Index (HHI) to increase air transport efficiency in Sumatra Island. This study uses data from cargo production and couple’s flights from 10 airports in Sumatra Island for domestic flight route pairs and 6 airports for international flight route pairs. The results of the study show that route networks in Sumatra Island in existing conditions have not developed with the hub-spokes concept. The HHI analysis, indicates 2 hubs for domestic flights and 1 hub (Kualanamu) for international flights. Kualanamu International Airport and Hang Nadim International Airport were indicated as hub airports in Sumatra Island for domestic flights. The efficiency of air cargo transportation through the system (2 hubs and 8 spokes) results in a transport efficiency at 68.37%, which is still far above the efficient range at 49-52%.
Highlights
Kualanamu International Airport in Beringin, Deli Serdang Regency, North Sumatra Province is the 5th busiest airport in Indonesia and the busiest airport in Sumatra Island
The aim of this paper is to evaluate the hub and spoke airport networks in Sumatra Island, Indonesia in existing conditions based on Herfindahl-Hirschmann Index (HHI) to identify air transport efficiency
Costa proposes the Herfindahl-Hirschmann Index (HHI) method to measure the efficiency of airport networks that include the number of effective airports and the number of hub airports (h) [26]
Summary
Kualanamu International Airport in Beringin, Deli Serdang Regency, North Sumatra Province is the 5th busiest airport in Indonesia and the busiest airport in Sumatra Island. Kualanamu International Airport opened to the public on July 25th, 2013. Kualanamu International Airport has served 6,374,897 passengers and 37,413,257 kilograms of cargo for domestic flights and 1,629,894 passengers and 4,215,927 kilograms of cargo for international flights [1]. After the Airline Deregulation Act in 1978, domestic carriers have developed the hub and spoke structures for their operations to reduce the overall costs of air travel and to increase travel demand [3]. Total accident cost in Purbalingga Regency, Central Java, Indonesia was estimated as 0.38% of the gross domestic product [15]
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