Abstract
This paper investigates how de-hubbing, which occurs when an airline ceases hub operations, impacts product quality. Examining five cases of de-hubbing following U.S. airline mergers between 1998 and 2015, we analyze how three measures of product quality change following de-hubbing: on-time performance, travel time, and flight cancellations. While state attorney generals have opposed recent airline mergers due to concerns about potential job losses and a reduction in airport service following airport de-hubbing, we find a silver lining from mergers as airlines offer improved product quality at de-hubbed airports due to more reliable flight schedules and shorter travel times.
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