Airline network structure and the gravity model

Airline network structure and the gravity model

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Article ID: iaor2003281
Country: United Kingdom
Volume: 37E
Issue: 4
Start Page Number: 267
End Page Number: 280
Publication Date: Aug 2001
Journal: Transportation Research. Part E, Logistics and Transportation Review
Authors:
Keywords: hub-and-spoke
Abstract:

In this paper, we determine characteristics of the cost-minimizing airline network under economies of density. Airline demand is asymmetric and governed by the gravity model. Airline networks are restricted to those where each spoke city is assigned to a single hub and where hub cities are fully interconnected. The cost-minimizing network is a mixture of a point-to-point and a single hub network. Multi-hub networks where passengers change planes at more than one airport are found to be suboptimal.

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