Airline hub

Frankfurt Airport serves as a hub city for Lufthansa and receives flights from Star Alliance carriers, among other airlines.

Airline hubs are airports that an airline uses as a transfer point to get passengers to their intended destination. It is part of a hub and spoke model, as opposed to the Point to Point model, where travelers moving between airports not served by direct flights change planes en route to their destinations.[1]

Many airlines also use focus cities, which have a good catchment area and function much the same as hubs, but on a smaller scale and may also function as feeders to main hubs. Some airlines also use the term secondary hubs for large focus cities.[2] Some airlines may use only a single hub, while other airlines use multiple hubs. Hubs are used for both passenger flights as well as cargo flights.

A hub in the middle of a route is more effective than at either end as connecting traffic more easily fills the plane – passengers prefer a one-stop (two-leg) route over a two-stop (three-leg) route.[3] The FAA uses the term airline hub based on number of commercial passengers in the FAA airport categories, re-evaluated every year. Airlines often have their headquarters in a major hub, whether on the same campus as the hub airport (for example, Delta Air Lines has its headquarters at Hartsfield-Jackson Atlanta International Airport, a Delta hub; American Airlines has their headquarters at Dallas/Fort Worth International Airport, an American hub, and United Airlines has its headquarters in Chicago, which is served by O'Hare International Airport, a United hub).

Competition

A dominant airline will want to take measures to defend its preferred position at a hub airport.[4] These measures can sometimes be anti-competitive, for example Pro Air's battle with Northwest when it briefly flew out of Detroit City Airport: Northwest was able to out compete the short-lived discount carrier by matching its fares and offering more frequent flights.[5]

New entrants, such as Spirit Airlines at Detroit Metropolitan Wayne County Airport and Dallas-Fort Worth International Airport, or AirTran at Hartsfield-Jackson Atlanta International Airport, allege to have been the target of exclusionary practices by the dominant carrier, like in Cincinnati/Northern Kentucky International Airport or all Delta Air Lines hubs.

Airports where a single airline's share of flights is at or above 70 percent can be called fortress hub.[6] For example, in 2010 US Airways occupied 85 (plus 1 shared with Lufthansa) out of 97 total gates and accounted for approximately 90% of passenger traffic at Charlotte Douglas International Airport. The existence of fortress hubs makes possible the use of "hidden city" ticketing.

Most connected Airports

OAG calculates a ‘Connectivity Index’ for each airport as a ratio of the number of possible connections to the number of destinations served by each airport.

The World’s Most Connected Airports[7]
Rank Airport Country Connectivity Index
1 Atlanta United States United States 2503
2 Chicago United States United States 2280
3 Dallas United States United States 1940
4 Charlotte United States United States 1585
5 Houston United States United States 1028
6 Detroit United States United States 903
7 São Paulo Brazil Brazil 880
8 Denver United States United States 877
9 Mexico City Mexico Mexico 826
10 Phoenix United States United States 778

See also

References

  1. "Low cost vs. Full service Airlines: What's the difference? - Sir Trips-a-lot". Retrieved 21 May 2015.
  2. Eric Heymann (18 August 2006). Hans-Joachim Frank, ed. "The future of the hub strategy in the air transport industry" (PDF). Deutsche Bank Research.
  3. Schofield, Adrian (27 August 2012). "Competition Heats Up As Carriers Contest Kangaroo Routes". Aviation Week. Retrieved 22 November 2012.
  4. "Entry and Competition in the U.S. Airline Industry, special report 255 appendixes" (PDF). http://www.trb.org/Main/Blurbs/152250.aspx. Transportation Research Board. April 1998. External link in |website= (help)
  5. "Online NewsHour: Air Fares". Pbs.org. 15 June 1998. Archived from the original on 1 May 1999.
  6. Dr. Mark N. Cooper (22 January 1999). "Freeing Public Policy from the Deregulation Debate: The Airline Industry Comes of Age" (PDF). Consumer Federation of America: 10–11. Archived (PDF) from the original on 3 February 2007. Retrieved 17 March 2007.
  7. "Megahubs Index" (PDF). OAG. October 2015.

External links

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