Hub and Spoke Networks
After deregulation, the airlines quickly moved to a hub-and-spoke system, whereby an airline selected some airport, the hub, as the destination point for flights from a number of origination cities, the spokes. Because the size of the planes used varied according to the travel on that spoke, and since hubs allowed passenger travel to be consolidated in “transfer stations”, capacity utilization increased, allowing fare reduction. The hub-and-spoke model survives among the legacy carriers, but the low-cost carriers (LCCs), now 30 percent of the market, typically fly point to point. The network hubs model offers consumers more convenience for routes, but point-to-point routes have proven less costly for airlines to implement. Over time, the legacy carriers and the LCCs will likely use some combination of point to point and network hubs to capture both economies of scope and pricing advantages.
Read more about this topic: Airline Deregulation
Famous quotes containing the words hub and, hub, spoke and/or networks:
“We recognize caste in dogs because we rank ourselves by the familiar dog system, a ladderlike social arrangement wherein one individual outranks all others, the next outranks all but the first, and so on down the hierarchy. But the cat system is more like a wheel, with a high-ranking cat at the hub and the others arranged around the rim, all reluctantly acknowledging the superiority of the despot but not necessarily measuring themselves against one another.”
—Elizabeth Marshall Thomas. “Strong and Sensitive Cats,” Atlantic Monthly (July 1994)
“When I was growing up I used to think that the best thing about coming from Des Moines was that it meant you didn’t come from anywhere else in Iowa. By Iowa standards, Des Moines is a mecca of cosmopolitanism, a dynamic hub of wealth and education, where people wear three-piece suits and dark socks, often simultaneously.”
—Bill Bryson (b. 1951)
“Speak the speech ... trippingly on the tongue; but if you mouth it ... I had as lief the town crier had spoke my lines. Nor do not saw the air too much with your hand, thus, but use all gently; for in the very torrent, tempest, and as I may say the whirlwind of your passion, you must acquire and beget a temperance that may give it smoothness.”
—William Shakespeare (1564–1616)
“To be perfectly, brutally honest, those of us who are still carrying diaper everywhere we go are not at our most scintillating time of life....We need to remember that at one time in our lives, we all had senses of humor and knew things that were going on in the world. And if we just keep our social networks open, there will be people ready to listen when we once again have intelligent things to say.”
—Louise Lague (20th century)