Article ID Journal Published Year Pages File Type
1000844 Research in Transportation Business & Management 2012 7 Pages PDF
Abstract

The aviation industry is changing dynamically in order to increase market share and remain competitive. This study investigates the effectiveness of hub-and-spoke network design versus traditional point-to-point services for the African air route network. This network is currently characterised by sparse demand, with long sector distances, low frequencies and high fares. Criteria such as passenger demand and sector distance differentiate the routes that will be compared. The findings show that hubbing is advantageous for shorter routes with low passenger demand. The disadvantage of the extra travel time incurred by passengers in a sparse hub network, on routes with low passenger demand, is outweighed by increased accessibility and lower fares. Some of the high passenger demand routes can be operated profitably either as direct routes or as routes in a hub network. This highlights the need to allow for flexibility in permitting direct routes when planning a hub network.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Business and International Management
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