A NOTE ON THE COMPETITIVE ADVANTAGE OF LARGE HUB-AND-SPOKE NETWORKS

This paper explores the extent to which airlines operating large hub-and-spoke networks secure a competitive advantage. More specifically, the paper explores the intricate relationship which arises among productive efficiencies and profitability when the size of the hub-and-spoke network expands. To this end, airline economics model is generalized by allowing the size of the hub-and-spoke network to vary. The central result shows that, although the model exhibits decreasing returns to the firm/network size, nonetheless there is a competitive advantage to increasing the size of a network.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/13665545
• Corporate Authors:

  Elsevier

  The Boulevard, Langford Lane
  Kidlington, Oxford  United Kingdom  OX5 1GB
• Authors:
  • Nero, G
• Publication Date: 1999-12

Language

• English

Media Info

• Features: Appendices; Figures; References;
• Pagination: p. 225-239
• Serial:
  • Transportation Research Part E: Logistics and Transportation Review
  • Volume: 35
  • Issue Number: 4
  • Publisher: Elsevier
  • ISSN: 1366-5545
  • Serial URL: http://www.sciencedirect.com/science/journal/13665545

Subject/Index Terms

• TRT Terms: Airlines; Competition; Economic models; Economies of scale; Hub and spoke systems; Profitability; Traffic density
• Subject Areas: Aviation; Economics;

Filing Info

• Accession Number: 00778628
• Record Type: Publication
• Files: TRIS
• Created Date: Nov 9 1999 12:00AM