IDEAS home Printed from
   My bibliography  Save this article

Determining Hub Efficiency in Europe, the Middle East, and North Africa: The Impact of Geographical Positioning


  • M. Nenem


  • E. Ozkan-Gunay



In order to extend beyond their natural home markets, airlines compete to obtain the highest share of transit passenger traffic. Therefore, they focus on their geographical advantage in certain regions in order to attract a maximum number of transfer passengers. This study assesses the geographical attraction of existing and promising hubs in Europe, the Middle East and Northern Africa by employing a Cost of Available Seat per Kilometer (CASK) parameter as the reference point. Seven competing cities (London, Paris, Frankfurt, Dubai, Istanbul, Cairo and Madrid), said to be existing and newly emerging hubs, are compared in terms of cost effectiveness. A model comparing the relative superiorities of these candidate cities over one another is developed based on a sample of 4,080 distinct Origin and Destination (O&D) pairs. The basic results, without the attribution of O&D’s total traffic standings, show that Cairo, Istanbul and Dubai are the three best performing hub candidates, respectively. In absolute numbers, Cairo has the larger advantage over the six other candidate cities. However, when the size of the O&D’s are weighted, the best performing cities are founded to be Istanbul, Frankfurt and Cairo, respectively. In this case, Istanbul is determined to be the most efficient hub for the majority of transit passengers. Despite the downturn in the Aviation Industry in 2009, the growth trend both in Egypt Air and Turkish Airlines is a reflection of these airlines’ recent realization of their potential in hub efficiency. Copyright Eurasia Business and Economics Society 2012

Suggested Citation

  • M. Nenem & E. Ozkan-Gunay, 2012. "Determining Hub Efficiency in Europe, the Middle East, and North Africa: The Impact of Geographical Positioning," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 2(2), pages 37-53, December.
  • Handle: RePEc:spr:eurase:v:2:y:2012:i:2:p:37-53
    DOI: 10.14208/BF03353836

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

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

    References listed on IDEAS

    1. Flores-Fillol, Ricardo, 2009. "Airline competition and network structure," Transportation Research Part B: Methodological, Elsevier, vol. 43(10), pages 966-983, December.
    2. Kawasaki, Akio, 2008. "Network effects, heterogeneous time value and network formation in the airline market," Regional Science and Urban Economics, Elsevier, vol. 38(4), pages 388-403, July.
    3. Teodorovic, Dusan & Kalic, Milica & Pavkovic, Goran, 1994. "The potential for using fuzzy set theory in airline network design," Transportation Research Part B: Methodological, Elsevier, vol. 28(2), pages 103-121, April.
    Full references (including those not matched with items on IDEAS)


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

    Cited by:

    1. Resul Aydemir & Cihad Haytural, 2016. "The effects of low cost carrier entry in the Turkish Airline industry," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 6(1), pages 111-124, April.
    2. Dursun, Mehmet Erkan & O'Connell, John F. & Lei, Zheng & Warnock-Smith, David, 2014. "The transformation of a legacy carrier – A case study of Turkish Airlines," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 106-118.

    More about this item


    Hub Efficiency; Emerging Hubs; Aviation Policy; L9; L93;

    JEL classification:

    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation


    Access and download statistics


    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:spr:eurase:v:2:y:2012:i:2:p:37-53. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Andrew Huffard) The email address of this maintainer does not seem to be valid anymore. Please ask Andrew Huffard to update the entry or send us the correct email address. General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.