CORDIS Project
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This project develops an economic model to analyze competition between hub-and-spoke airline carriers and direct carriers. It focuses on the impact of route inter-dependence and consumer benefits on pricing and service decisions, aiming to quantify the competitive advantages of hub carriers in the evolving airline mark…
The structure of the US airline industry has undergone important changes since the deregulation in 1978, which removed entry and exit restrictions and allowed carriers to set airfares.
One of the most dramatic aspects of the airline deregulation has been the shift of carriers from a point-to-point business model to hub-and-spoke (HS) networks, where a carrier designates one or more strategically located cities as hubs.
Passengers are first channeled to the hub, and only then are taken to their r…
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