IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v35y2001i5p373-390.html
   My bibliography  Save this article

Evaluating optimal multi-hub networks in a deregulated aviation market with an application to Western Europe

Author

Listed:
  • Adler, Nicole
  • Berechman, Joseph

Abstract

This paper develops, evaluates and ultimately aids in the choosing of an optimal, single allocation, hub-and-spoke network for an airline working in a deregulated market. An integer linear program evaluates potential hub network combinations, whose profits are then determined using a non-linear mathematical program. International gateway airports and regional hubs, profit, frequency and aircraft size are the decision variables. An adapted, conjugate-gradient projection algorithm is developed and the models are subsequently applied to Western Europe.

Suggested Citation

  • Adler, Nicole & Berechman, Joseph, 2001. "Evaluating optimal multi-hub networks in a deregulated aviation market with an application to Western Europe," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(5), pages 373-390, June.
    • Handle: RePEc:eee:transa:v:35:y:2001:i:5:p:373-390
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965-8564(99)00063-4
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Marianov, Vladimir & Serra, Daniel & ReVelle, Charles, 1999. "Location of hubs in a competitive environment," European Journal of Operational Research, Elsevier, vol. 114(2), pages 363-371, April.
    2. Hasan Pirkul & David A. Schilling, 1998. "An Efficient Procedure for Designing Single Allocation Hub and Spoke Systems," Management Science, INFORMS, vol. 44(12-Part-2), pages 235-242, December.
    3. Dennis W. Carlton & William M. Landes & Richard A. Posner, 1980. "Benefits and Costs of Airline Mergers: A Case Study," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 65-83, Spring.
    4. Tae Hoon Oum & Anming Zhang & Yimin Zhang, 1995. "Airline Network Rivalry," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4a), pages 836-857, November.
    5. Encaoua, D. & Moreaux, M. & Perrot, A., 1992. "Demand-Side Network Effect in Airline Markets," Papiers d'Economie Mathématique et Applications 92.28, Université Panthéon-Sorbonne (Paris 1).
    6. Oum, Tae Hoon & Zhang, Anming & Zhang, Yimin, 1996. "A note on optimal airport pricing in a hub-and-spoke system," Transportation Research Part B: Methodological, Elsevier, vol. 30(1), pages 11-18, February.
    7. Skorin-Kapov, Darko & Skorin-Kapov, Jadranka & O'Kelly, Morton, 1996. "Tight linear programming relaxations of uncapacitated p-hub median problems," European Journal of Operational Research, Elsevier, vol. 94(3), pages 582-593, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Graham, Mark, 2009. "Different models in different spaces or liberalized optimizations? Competitive strategies among low-cost carriers," Journal of Transport Geography, Elsevier, vol. 17(4), pages 306-316.
    2. Nakagawa, Dai & Aoyama, Yoshitaka & Ito, Tadashi & Nishizawa, Hiroyuki, 2005. "Assessment of passenger benefits brought about by international airport projects," Transport Policy, Elsevier, vol. 12(6), pages 512-524, November.
    3. José Ignacio Castillo Manzano & Fernando González Laxe & Lourdes López Valpuesta, 2006. "Una Introducción al Análisis del Tráfico de Contenedores mediante los Vectores Autoregresivos," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 5, pages 1-23, January.
    4. Aisling J. Reynolds-Feighan, 2007. "Carrier Network Structures and the Spatial Distribution of Air Traffic in the European Air Transport Market, 1996-2006," Rivista di Politica Economica, SIPI Spa, vol. 97(1), pages 243-243, January-F.
    5. Lieshout, Rogier & Matsumoto, Hidenobu, 2012. "New international services and the competitiveness of Tokyo International Airport," Journal of Transport Geography, Elsevier, vol. 22(C), pages 53-64.
    6. Wang, Xiyan(Jamie), 2016. "1-Hub, 2-hub or fully connected network? A theoretical analysis of the optimality of airline network structure," Economics of Transportation, Elsevier, vol. 5(C), pages 12-23.
    7. Adler, Nicole & Hashai, Niron, 2005. "Effect of open skies in the Middle East region," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(10), pages 878-894, December.
    8. Burghouwt, Guillaume, 2014. "Long-haul specialization patterns in European multihub airline networks – An exploratory analysis," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 30-41.
    9. Sismanidou, Athina & Tarradellas, Joan & Bel, Germà & Fageda, Xavier, 2013. "Estimating potential long-haul air passenger traffic in national networks containing two or more dominant cities," Journal of Transport Geography, Elsevier, vol. 26(C), pages 108-116.
    10. Nicole Adler, 2005. "Hub-Spoke Network Choice Under Competition with an Application to Western Europe," Transportation Science, INFORMS, vol. 39(1), pages 58-72, February.
    11. Adler, Nicole & Smilowitz, Karen, 2007. "Hub-and-spoke network alliances and mergers: Price-location competition in the airline industry," Transportation Research Part B: Methodological, Elsevier, vol. 41(4), pages 394-409, May.
    12. Marti­n, Juan Carlos & Román, Concepción, 2003. "Hub location in the South-Atlantic airline market: A spatial competition game," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(10), pages 865-888, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tiwari, Richa & Jayaswal, Sachin & Sinha, Ankur, 2021. "Alternate solution approaches for competitive hub location problems," European Journal of Operational Research, Elsevier, vol. 290(1), pages 68-80.
    2. Tiwari, Richa & Jayaswal, Sachin & Sinha, Ankur, 2019. "Alternate Solution Approaches for Competitive Hub Location Problems," IIMA Working Papers WP 2019-12-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    3. Dhyani, Sneha & Jayaswal, Sachin & Sinha, Ankur & Vidyarthi, Navneet, 2019. "Alternate Second Order Conic Programming Reformulations for Hub Location with Capacity Selection under Demand," IIMA Working Papers WP 2018-12-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    4. Sneha Dhyani Bhatt & Sachin Jayaswal & Ankur Sinha & Navneet Vidyarthi, 2021. "Alternate second order conic program reformulations for hub location under stochastic demand and congestion," Annals of Operations Research, Springer, vol. 304(1), pages 481-527, September.
    5. Alumur, Sibel A. & Campbell, James F. & Contreras, Ivan & Kara, Bahar Y. & Marianov, Vladimir & O’Kelly, Morton E., 2021. "Perspectives on modeling hub location problems," European Journal of Operational Research, Elsevier, vol. 291(1), pages 1-17.
    6. Tiwari, Richa & Jayaswal, Sachin & Sinha, Ankur, 2021. "Competitive hub location problem: Model and solution approaches," Transportation Research Part B: Methodological, Elsevier, vol. 146(C), pages 237-261.
    7. Tiwari, Richa & Jayaswal, Sachin & Sinha, Ankur, 2019. "Competitive Hub Location Problems: Model and Solution Approaches," IIMA Working Papers WP 2019-12-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    8. Lin, Ming Hsin & Zhang, Anming, 2016. "Hub congestion pricing: Discriminatory passenger charges," Economics of Transportation, Elsevier, vol. 5(C), pages 37-48.
    9. James F. Campbell & Morton E. O'Kelly, 2012. "Twenty-Five Years of Hub Location Research," Transportation Science, INFORMS, vol. 46(2), pages 153-169, May.
    10. An, Yu & Zhang, Yu & Zeng, Bo, 2015. "The reliable hub-and-spoke design problem: Models and algorithms," Transportation Research Part B: Methodological, Elsevier, vol. 77(C), pages 103-122.
    11. Marti­n, Juan Carlos & Román, Concepción, 2003. "Hub location in the South-Atlantic airline market: A spatial competition game," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(10), pages 865-888, December.
    12. Bhatt, Sneha Dhyani & Sinha, Ankur & Jayaswal, Sachin, 2024. "The capacitated r-hub interdiction problem with congestion: Models and solution approaches," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).
    13. Alibeyg, Armaghan & Contreras, Ivan & Fernández, Elena, 2018. "Exact solution of hub network design problems with profits," European Journal of Operational Research, Elsevier, vol. 266(1), pages 57-71.
    14. Zhang, Anming, 2005. "Competition Models of Strategic Alliances," Research in Transportation Economics, Elsevier, vol. 13(1), pages 75-100, January.
    15. Park, Jong-Hun & Zhang, Anming & Zhang, Yimin, 2001. "Analytical models of international alliances in the airline industry," Transportation Research Part B: Methodological, Elsevier, vol. 35(9), pages 865-886, November.
    16. Alumur, Sibel A. & Nickel, Stefan & Saldanha-da-Gama, Francisco, 2012. "Hub location under uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 46(4), pages 529-543.
    17. Samir Elhedhli & Huyu Wu, 2010. "A Lagrangean Heuristic for Hub-and-Spoke System Design with Capacity Selection and Congestion," INFORMS Journal on Computing, INFORMS, vol. 22(2), pages 282-296, May.
    18. Adler, Nicole, 2001. "Competition in a deregulated air transportation market," European Journal of Operational Research, Elsevier, vol. 129(2), pages 337-345, March.
    19. Mahmutogullari, Ali Irfan & Kara, Bahar Y., 2016. "Hub location under competition," European Journal of Operational Research, Elsevier, vol. 250(1), pages 214-225.
    20. Matsubayashi, Nobuo & Umezawa, Masashi & Masuda, Yasushi & Nishino, Hisakazu, 2005. "A cost allocation problem arising in hub-spoke network systems," European Journal of Operational Research, Elsevier, vol. 160(3), pages 821-838, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:35:y:2001:i:5:p:373-390. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.