Air Transport Liberalization
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Air Transport Liberalization

A Critical Assessment

Edited by Matthias Finger and Kenneth Button

This groundbreaking book offers a critical and wide-ranging assessment of the global air transport liberalization process over the past 40 years. This compilation of world experts on air transport economics, policy, and regulation is timely and significant, considering that air transport is currently facing a series of new challenges due to technological changes, the emergence of new markets, and increased security concerns.
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Chapter 14: Domination of hub-and-spoke systems

Marc C. Gelhausen and Peter Berster

Abstract

The purpose of this chapter is to analyse empirically how hub airports and hub-and-spoke systems have evolved over the last 15 years. First, we take a look at the cumulative distribution of the supply of flights at airports. We begin with the global distribution, and then move on to analysing regional distributions. There is a very high concentration of flights at a fairly small number of hub airports. Over the years, concentration has remained very high. These findings indicate that the hub-and-spoke system is still very effective. The majority of flights are still operated by full-service network carriers, but low-cost carriers are also starting to play an important role. Finally, we take a look at how the supply of flights in airline alliances has evolved over the last 15 years, especially in the light of the development of low-cost carriers.

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