AIRLINE HUB AND SPOKE SYSTEMS

Since the advent of airline deregulation in the U.S. in 1978, carriers have been free to adjust their route networks for operational efficiency and/or marketing advantage. The hub and spoke network has been adopted by almost all of the major carriers. In Canada, although complete deregulation began in 1988, the regulatory relaxation which preceded resulted in some moves to hub and spoke systems, at least to the extent that Canadian geography and demographics will allow. This paper discusses economic, marketing and operational aspects of hub and spoke systems. Different types of hub systems are defined (simple, complex and multiple). Impacts of hub and spoke systems on passenger time and airline operating costs are described. The impact on passenger time would include time penalties from an extra stop and route diversion, as well as advantages that may be possible from increased flight frequency. The latter is discussed in the context of the total amount of time a passenger trip takes, including schedule delay time as well as flight (or en-route) time. Next, these operational aspects are used to discuss the economics of hub systems. Hubs may allow consolidation of traffic to support service (and frequent service) where such service might not be viable under alternative route network configurations. Effects of hubs on traffic density is discussed and put into the context of economies of traffic density versus economies of scale. Hub operations give rise to questions such as the marketing advantages or disadvantages of delaying flights in a complex when operations are nonroutine. Finally, factors concerning choice of hub location as well as whether or not to utilize a hub network are discussed in terms of air carrier strategy.

• Record URL:
  • https://catalog.hathitrust.org/Record/001070572/Home
• Availability:
  • Find a library where document is available. Order URL: https://www.library.northwestern.edu/find-borrow-request/requests-interlibrary-loan/lending-institutions.html
• Authors:
  • Oum, T H
  • Tretheway, M W
• Publication Date: 1990

Media Info

• Features: Figures; References;
• Pagination: p. 380-393
• Serial:
  • Journal of the Transportation Research Forum
  • Volume: 30
  • Issue Number: 2
  • Publisher: Transportation Research Forum
  • ISSN: 1046-1469
  • Serial URL: https://trforum.org/journal-of-the-trf/
• Publication flags:

  Open Access (libre)

Subject/Index Terms

• TRT Terms: Airlines; Economics; Economies of scale; Hub and spoke systems; Impacts; Location; Marketing; Operations; Strategic planning; Traffic density; Travel time
• Uncontrolled Terms: Operational analysis
• Geographic Terms: Canada
• Subject Areas: Administration and Management; Aviation; Economics; Highways; Planning and Forecasting;

Filing Info

• Accession Number: 00496520
• Record Type: Publication
• Files: TRIS
• Created Date: Aug 31 1990 12:00AM