Performance of Hub and Spoke Networks of Selected Airlines

Abstract

Abstract Networks are the core part of airline operations and key aspect that define strategy of a carrier. They are defined by served markets, number of destinations, their configuration and airline business models. Nowadays, we recognize two principal concepts of network structures: Hub and spoke and Point-to-point. The Hub and spoke concept is subject of this paper. Historically, airlines operated highly regulated point-to-point networks which changed towards more profitable operation after the deregulation of the industry. Airlines adopted hub and spoke concept and so expanded their networks to serve multiple origins and destinations in more efficient manner by interconnecting them at one central point - its hub. An important factor in hub and spoke operations is the connectivity. Flights are scheduled into clusters of arrivals and departures in order to increase number of possible connection within acceptable time frame. The more feasible connections an airline can provide the more traffic can be induced to fill up their flights. This paper investigates ways in which airlines operate at their hubs and what patterns of inbound/outbound flights they have incorporated. Simple benchmarking of hub and spoke operations of selected airlines and their performance at respective hubs is carried out. In the end, authors present conclusion on the hub and spoke structures of airlines that were subject of this paper.