Industry consolidation and future airline network structures in Europe

Major airlines are revising and rationalising their networks in an attempt to improve financial performance and strengthen their defences against both new entrants and traditional rivals. This paper analyses the latest developments and attempts to identify the implications for airline network structures and the function of different hub airports. The range of services available to passengers in long-haul markets to/from Europe is evaluated before and after recent industry reorganisation. The extent to which the alliance hubs in Europe duplicate or complement each other in terms of network coverage is assessed and future scenarios of alliance development are discussed.