Multi-Hub Networks: Masterpieces or Nightmares of Complexity?

Abstract

Soon after deregulation, networks with multiple major transfer hubs emerged in the United States, and European and Asian airlines quickly followed. In the recent past, many airline mergers accelerated this trend. Networks with multiple hubs cover more regional space and handle more transfer traffic. On the other hand, multi-hub networks exhibit significantly more overlap with competing multi-hub networks, spurring competition but also accelerating yield erosion. In addition to expanded regional scope and scale, multi-hub networks offer passengers a variety of itineraries for outbound and homebound transfer journeys, all within the same tariff structure. Multi-hub networks often offer multiple itineraries on the same O&D at similar times of day, thereby creating potential internal competition. This chapter examines the strengths and weaknesses of multi-hub structures, and introduces the tactics for assessing and improving synchrony within such complex networks.