Arrivals - hub networks hurt by handling capacity

A traditional hub-and-spoke network may prevent network airlines from cutting their structural expenses to the level of point-to-point carriers. An analysis by Aviation Week Group's Aviation Daily and Eclat Consulting has shown that the cost to handle passengers in a US hub-and-spoke system is up to 45% higher than that in a point-to-point system. Handling costs are linked to passenger service, aircraft servicing and traffic servicing. Handling costs at the six US network carriers were 37% of total expenses, excluding fuel and regional capacity. Handling costs at traditional low cost carrier terminals represented only 31% of total expenses. The analysis showed that US network carriers' handling costs were 70% higher than those of their low-cost competitors.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/1518944
• Authors:
  • Lott, S
• Publication Date: 2005-11-7

Language

• English

Media Info

• Pagination: p56
• Serial:
  • Aviation Week & Space Technology
  • Publisher: McGraw-Hill, Incorporated
  • ISSN: 0005-2175

Subject/Index Terms

• TRT Terms: Hub and spoke systems
• ITRD Terms: 1258: Aircraft; 1037: Airport; 235: Competition; 224: Cost; 255: Economics; 1154: Network (transport); 8122: USA
• Subject Areas: Operations and Traffic Management; I10: Economics and Administration; I70: Traffic and Transport;

Filing Info

• Accession Number: 01037169
• Record Type: Publication
• Source Agency: Transport Research Laboratory
• Files: ITRD
• Created Date: Nov 21 2006 9:01AM