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Application of Hub-and-spoke Networks in Sparse Markets The Case of Africa

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  • Bridget Ssamula
  • Christoffel Venter

Abstract

Hub-and-spoke networks hold promise for decreasing costs and increasing connectivity in air transport markets in countries characterised by sparse demand conditions. This paper examines suitable hub-location and network design methodologies, and the potential evolution of sparse networks over time in Africa. By adopting a cost model to assess the operational effectiveness of alternative networks, we show that low-cost, short-range airplanes have a significant role to play in low-density hub-and-spoke operations. In Africa, a four-hub network centred on high-demand hubs with short node-hub distances is the most suitable option. © 2013 LSE and the University of Bath

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  • Bridget Ssamula & Christoffel Venter, 2013. "Application of Hub-and-spoke Networks in Sparse Markets The Case of Africa," Journal of Transport Economics and Policy, University of Bath, vol. 47(2), pages 279-297, May.
    • Handle: RePEc:tpe:jtecpo:v:47:y:2013:i:2:p:279-297
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    Cited by:

    1. Adler, Nicole & Njoya, Eric Tchouamou & Volta, Nicola, 2018. "The multi-airline p-hub median problem applied to the African aviation market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 107(C), pages 187-202.
    2. Button, Kenneth & Martini, Gianmaria & Scotti, Davide & Volta, Nicola, 2019. "Airline regulation and common markets in Sub-Saharan Africa," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 129(C), pages 81-91.

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