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De-Hubbing cases and recovery patterns

Author

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  • Renato Redondi

    ()

  • Paolo Malighetti

    ()

  • Stefano Paleari

    ()

Abstract

The objective of this work is to analyze the cases of de-hubbing during period 1997-2009 in the world-wide air transport network. To the best of our knowledge, this is the first attempt to study de-hubbing in a systematic way. In order to identify those cases, this paper firstly addresses the issue of which quantitative conditions must be met for airports to be identified as de-hubbing cases. These conditions include the declining presence of the hub carrier, or hub alliance, within the airport, that results in a decrease in the number and quality of connections offered. The second phase is to study what happens after de-hubbing by clustering the cases into homogenous scenarios. Our results show that, on average, airports that suffered de-hubbing did not recover their original traffic in 5 years. Results suggest that de-hubbing is not likely to be reversible. When hub carriers are replaced at least partially by low-cost carriers, the airports on average show faster recovery trends. The most frequent case is when, after de-hubbing, the airports traffic declines. The impact of de-hubbing on the number of destinations is less severe than its effect on offered seats.

Suggested Citation

  • Renato Redondi & Paolo Malighetti & Stefano Paleari, 2010. "De-Hubbing cases and recovery patterns," Working Papers 1008, Department of Economics and Technology Management, University of Bergamo.
  • Handle: RePEc:brh:wpaper:1008
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    File URL: http://hdl.handle.net/10446/737
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    Keywords

    de-hubbing; recovery scenarios; airport network;

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