Optimality of the hub-spoke system: A review of the literature, and directions for future research

Eric Pels

Transport Policy, 2021, vol. 104, issue C, A1-A10

Abstract: This paper reviews the relevant literature to answer the question if hub-spoke networks are optimal from an economic and environmental aspect. Hub-spoke networks are used to serve a large number of destinations with a high frequency. The concentration of flights and demand leads to positive economic effects: additional indirect effects come from the high number of destinations. Airlines may prefer indirect passengers over direct passengers, at the expense of local welfare, if the willingness-to-pay of the former is higher. Furthermore, indirect effects are a redistribution of the direct effect, and may lead to double counting.

Keywords: Aviation; Airports; Economic effects; Hub-spoke; Externalities (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:trapol:v:104:y:2021:i:c:p:a1-a10

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DOI: 10.1016/j.tranpol.2020.08.002

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