Application of Hub-and-spoke Networks in Sparse Markets The Case of Africa

Bridget Ssamula and Christoffel Venter

Journal of Transport Economics and Policy, 2013, vol. 47, issue 2, 279-297

Abstract: Hub-and-spoke networks hold promise for decreasing costs and increasing connectivity in air transport markets in countries characterised by sparse demand conditions. This paper examines suitable hub-location and network design methodologies, and the potential evolution of sparse networks over time in Africa. By adopting a cost model to assess the operational effectiveness of alternative networks, we show that low-cost, short-range airplanes have a significant role to play in low-density hub-and-spoke operations. In Africa, a four-hub network centred on high-demand hubs with short node-hub distances is the most suitable option. © 2013 LSE and the University of Bath

Date: 2013
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