Evaluating optimal multi-hub networks in a deregulated aviation market with an application to Western Europe
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.
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Volume (Year): 35 (2001)
Issue (Month): 5 (June)
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References listed on IDEAS
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- Tae Hoon Oum & Anming Zhang & Yimin Zhang, 1995. "Airline Network Rivalry," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4a), pages 836-57, November.
- 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.
- 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 S235-S242, December.
- 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.
- Encaoua, D. & Moreaux, M. & Perrot, A., 1992. "Demand-Side Network Effect in Airline Markets," Papiers d'Economie MathÃ©matique et Applications 92.28, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- 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.
- Vladimir Marianov & Daniel Serra & Charles Revelle, 1997.
"Location of hubs in a competitive environment,"
Economics Working Papers
227, Department of Economics and Business, Universitat Pompeu Fabra.
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