An Analysis of the Effects of European Aviation Deregulation on an Airline’s Network Structure and Choice of a Primary West-European Hub Airport

An Analysis of the Effects of European Aviation Deregulation on an Airline’s Network Structure and Choice of a Primary West-European Hub Airport

This paper focuses on the potential of specific airports to attract new services and carriers. A network simulation model is developed for an airline operating in a deregulated market, whose economic objectives are profit maximisation and market dominance. The model simulates the potential profits that this hypothetical airline can expect if it adopts a hub-and-spoke network with a specific airport as its hub.

Share Content

Facebook
Twitter
LinkedIn

Related Articles

An Analysis of Fortress Hubs in Airline Networks

This paper explores the possibility that the fortress hub is a consequence of the nature of airline hub-spoke rivalry. Entry into a competitor’s local market may reduce the entrant’s profit in his own market. As a result, there is a deterrent to entry if the negative effects are strong enough. The paper also examines the impacts of local competition on consumer surplus and total social surplus.

View Journal »

The Choice between Cars and Buses on Urban Roads

As a practical criterion it is suggested that a balance between private and public passenger transport might be planned with the object of minimising the total of all journey times. The data needed to implement such a criterion are described and a hypothetical example is give using data relating to Leicester. The method of diverting passengers from private to public transport is not revealed.

View Journal »