Abstract
Considering that lengthened transit airline route will reduce the quantity of customers in hub-and-spoke airline networks, the saved cost and reduced quantity of customers must be traded off when hub-and-spoke networks are designed. We apply gravity model to indicate the influence of quantity of customers due to different selection of hub airports. This paper presents a new network design method and mathematic optimization model whose object is to maximize total social net welfare. The hub-and-spoke network of Chinese fifteen cities is constructed using this method to demonstrate the effectiveness and practicability of this model.
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