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Network structure and capacity requirement: The case of China

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  • Zhang, Yimin

Abstract

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.

Suggested Citation

  • Zhang, Yimin, 2010. "Network structure and capacity requirement: The case of China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(2), pages 189-197, March.
  • Handle: RePEc:eee:transe:v:46:y:2010:i:2:p:189-197
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    Citations

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    Cited by:

    1. Zhang, Anming & Czerny, Achim I., 2012. "Airports and airlines economics and policy: An interpretive review of recent research," Economics of Transportation, Elsevier, vol. 1(1), pages 15-34.
    2. Sheng, Dian & Li, Zhi-Chun & Xiao, Yi-bin & Fu, Xiaowen, 2015. "Slot auction in an airport network with demand uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 79-100.
    3. repec:eee:transa:v:103:y:2017:i:c:p:490-508 is not listed on IDEAS
    4. Xiao, Yibin & Fu, Xiaowen & Zhang, Anming, 2013. "Demand uncertainty and airport capacity choice," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 91-104.
    5. Huber, Hans, 2015. "Network Structure, Capacity Growth and Route Hierarchies: The case of China’s Air Traffic System (ATS) revisited," IIMA Working Papers WP2015-04-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
    6. Sun, Xiaoqian & Wandelt, Sebastian, 2014. "Network similarity analysis of air navigation route systems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 416-434.
    7. Lin, Ming Hsin & Zhang, Anming, 2016. "Hub congestion pricing: Discriminatory passenger charges," Economics of Transportation, Elsevier, vol. 5(C), pages 37-48.
    8. Jiang, Changmin & Zhang, Anming, 2016. "Airline network choice and market coverage under high-speed rail competition," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 248-260.
    9. Xiao, Yibin & Fu, Xiaowen & Zhang, Anming, 2016. "Airport capacity choice under airport-airline vertical arrangements," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 298-309.
    10. 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.
    11. 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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