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.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
