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Optimality of the hub-spoke system: A review of the literature, and directions for future research

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  • Pels, Eric

Abstract

This paper reviews the relevant literature to answer the question if hub-spoke networks are optimal from an economic and environmental aspect. Hub-spoke networks are used to serve a large number of destinations with a high frequency. The concentration of flights and demand leads to positive economic effects: additional indirect effects come from the high number of destinations. Airlines may prefer indirect passengers over direct passengers, at the expense of local welfare, if the willingness-to-pay of the former is higher. Furthermore, indirect effects are a redistribution of the direct effect, and may lead to double counting.

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  • Pels, Eric, 2021. "Optimality of the hub-spoke system: A review of the literature, and directions for future research," Transport Policy, Elsevier, vol. 104(C), pages 1-10.
    • Handle: RePEc:eee:trapol:v:104:y:2021:i:c:p:a1-a10
    DOI: 10.1016/j.tranpol.2020.08.002
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