Network structure and capacity requirement: The case of China
This 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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Volume (Year): 46 (2010)
Issue (Month): 2 (March)
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