THE EU AND US AIR FREIGHT MARKETS: NETWORK ORGANIZATION IN A DEREGULATED ENVIRONMENT

The purpose of the paper is to examine freight transport network aspects of the US and EU (European Union) air freight industries. Distinctions between passenger and freight operations are made and the important role of an air carrier's network is discussed. In the USA after air cargo deregulation in 1977, all-cargo carriers greatly increased their share of the airfreight market by diversifying the range of air freight products offered and by developing multimodal networks. The all-cargo operators organized their networks around single hub while the combination passenger/cargo carriers have developed interactive hug-and-spoke systems based around several regional hubs. These networks have evolved more for passenger needs thanfor cargo needs. The traffic distributions for several of the EU 'flag carriers' are then analysed. The EU carrier's network is typically a single hub operation, largely because regulations up until 1993 have prevented the development of hubs outside of the national territory. The liberalization of air transport now permits carriers to expand their networks withinthe EU by entering international community routes. EU carriers are likely to develop interactive hub- and-spoke networks involving several regionalhubs as this network system has many economic and strategic advantages. Given congestion problems and the dominant position of flag carriers at their home 'hub' airports, these networks will develop through mergers and acquisitions rather than through independent growth. This liberalization will lead to further concentration of activity in the community's core areawith many peripheral regions being made worse off as air services to smaller communities are reduced.

• 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:
  • Reynolds-Feighan, A J
• Publication Date: 1994

Language

• English

Media Info

• Features: References;
• Pagination: p. 193-217
• Serial:
  • Transport Reviews
  • Publisher: Routledge
  • ISSN: 0144-1647
  • EISSN: 1464-5327
  • Serial URL: http://www.tandfonline.com/loi/ttrv20

Subject/Index Terms

• TRT Terms: Aircraft; Deregulation; Economic factors; Economics; Freight transportation; Networks; Transportation; Transportation operations
• Uncontrolled Terms: Transportation networks
• Geographic Terms: Europe; United States
• ITRD Terms: 1258: Aircraft; 144: Deregulation; 263: Economics of transport; 8034: Europe; 741: Goods traffic; 1054: Network (traffic); 1144: Operations (transp network); 8122: USA
• Subject Areas: Economics; Transportation (General);

Filing Info

• Accession Number: 00669882
• Record Type: Publication
• Source Agency: Transport Research Laboratory
• Files: ITRD
• Created Date: Dec 23 1994 12:00AM