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Airlines with multiple hubs
#5
(05-29-2018, 06:45 AM)Tjoeker Wrote: I'm sorry, I have many questions. Big Grin

Why would PEK-DOH-BOS be cheaper?
What has this to do with a hub effect?
How do you want us to show the increase in demand because of connecting flights?


Also, for the sake of clarity. I feel like there is some confusion going on.
A connecting flight are two different flights. You have to change aircraft in DOH and your luggage gets transfered automatically.
Not many passengers will make the same connection since it is your custom connection.

What I believe you are talking about it is a stopover flight.
A flight that makes a stop at DOH, even though you booked PEK-BOS, the flight happens to stop at DOH to board new passengers.
You never switch planes and there are more passengers taking the same route.


So if you were talking about a stopover flight, how would you like us to show that? Smile
Hi!

  Thank you for your reply! I apologize for not being able to fully explain my opinions. My hub effect idea is basically about the impact of interline ticketing(connecting flight tickets) on the demands. So the passengers change planes while not necessary to re-check-in their luggage. Here is my understanding so far.

  The hub effect can increase the demand of routes in two ways:

1.

When hub A has individual route connects to large cities B and C, the airline can offer discounted tickets for B-C. In this way, potential passenger of B-C will be attracted by its price and service to chose to fly B-A-C. Which competes with competitors operating B-C. For example, the route PEK-BOS is occupied by flight HU481, the newest price of cheapest economy class on Sep.28 is 5220RMB. Yet PEK-LAX-BOS (AA180+AA2455) on the same day only costs 754$ which is approximate 4839RMB. If purchased separately, the AA price will be 872$+137$ which proves the existence of a discount. Similarly, even though AH3061 offers direct fight PEK-ALG with the lowest price, most passengers would prefer to take PEK-DOH-ALG(QR895+QR1379) or PEK-IST-ALG(TK21+TK653) for better service and reputation.

2.

  When hub A has individual route connects high demand city B and low demand city C, the airline offers tickets for B-C. In this way, the relatively low passenger demand of B-C can now be added onto A-B, A-C. For example, since the demand of PEK-STL is not adequate, there is no airline operates such route. As a result, passengers takes PEK-ORD-STL(AA or UA) and increases the demand of those routes related to the hub ORD. This is in fact more common and helps the airliners to fill up their cross-continent flights.

 

In my opinion, if an airline sets airport A as a hub, it can create individual routes for cities like A-B, A-C, A-D. If so, the demand of B-C, B-D, C-D will be considered. If there is no direct flight from B-C, the demand of B-C will be added on A-B and A-C to simulate the situation that the passengers take an interline flight. If there is a direct flight, the airline can chose the amount of discount and compete with the competitor based on the price and service, although commonly it will be less competitive.
  I hope that I have explained my ideas clearly. Please feel free to ask me follow up questions since my English may not be fluent enough.     Big Grin
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Messages In This Thread
Airlines with multiple hubs - by 2466254711 - 05-15-2018, 04:16 AM
RE: Airlines with multiple hubs - by Tjoeker - 05-15-2018, 08:57 AM
RE: Airlines with multiple hubs - by 2466254711 - 05-28-2018, 11:34 PM
RE: Airlines with multiple hubs - by Tjoeker - 05-29-2018, 06:45 AM
RE: Airlines with multiple hubs - by 2466254711 - 05-29-2018, 12:14 PM
RE: Airlines with multiple hubs - by Tjoeker - 05-29-2018, 01:05 PM
RE: Airlines with multiple hubs - by 2466254711 - 05-29-2018, 01:31 PM

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