Network structure and capacity requirement: The case of China
AbstractThis paper analyzes capacity requirement by alternative network structures. Based on a simple model, it is concluded that the capacity required under a hub-and-spoke network would be more than twice as large as the capacity required under a fully connected network. In recent years, China has experienced unprecedented growth in the demand for air travel, which has put continuous pressure on the expansion in airport capacity. Still as a developing country, China suffers from insufficient investment in infrastructure. Therefore, given scarce capacity, it may be more efficient for the major air carriers not to adopt the hub-and-spoke network in Chinese domestic markets.
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Bibliographic InfoArticle provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.
Volume (Year): 46 (2010)
Issue (Month): 2 (March)
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Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description
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- Fu, Xiaowen & Zhang, Anming & Lei, Zheng, 2012. "Will China’s airline industry survive the entry of high-speed rail?," Research in Transportation Economics, Elsevier, vol. 35(1), pages 13-25.
- Zou, Bo & Hansen, Mark, 2012. "Flight delays, capacity investment and social welfare under air transport supply-demand equilibrium," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(6), pages 965-980.
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