Full-service airlines

Eric Pels

Chapter 11 in Research Handbook on Air Transport Management, 2026, pp 139-154 from Edward Elgar Publishing

Abstract: For decades the aviation sector was closed and protected, leading to high consumer prices. Following the deregulation of markets, some routes saw an increase in the number of competitors, while other routes saw a decrease in the number of competitors. The adoption of hub-spoke networks as well as the formation of alliances are a likely cause for these developments. The airlines that adopted hub-spoke networks, and later ventured into the process of alliance formation, are frequently referred to as full-service airlines. These airlines emphasize service quality, which leads to relatively high costs, and this necessitates the use of a hub-spoke network. These airlines serve different market segments and use yield management to maximize revenues.

Keywords: Hub-spoke; Service quality; Yield management; Capacity (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035336272
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