The Air Transportation Network Hub and Spoke vs
![The Air Transportation Network Hub and Spoke vs. Point to Point Evan Demick February The Air Transportation Network Hub and Spoke vs. Point to Point Evan Demick February](https://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-1.jpg)
The Air Transportation Network Hub and Spoke vs. Point to Point Evan Demick February 28, 2013
![Agenda �Airline Deregulation �Point to Point �Advantages and Disadvantages �Hub and Spoke �Advantages and Agenda �Airline Deregulation �Point to Point �Advantages and Disadvantages �Hub and Spoke �Advantages and](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-2.jpg)
Agenda �Airline Deregulation �Point to Point �Advantages and Disadvantages �Hub and Spoke �Advantages and Disadvantages �Airplane Manufacturers
![Airline Deregulation �The Civil Aeronautics Board (CAB) controlled all airline pricing, routes, and scheduling Airline Deregulation �The Civil Aeronautics Board (CAB) controlled all airline pricing, routes, and scheduling](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-3.jpg)
Airline Deregulation �The Civil Aeronautics Board (CAB) controlled all airline pricing, routes, and scheduling prior to 1978 deregulation. �Influx of new low cost carriers have entered the market. �Fares have decreased across the board for air travelers. �Productivity has increased substantially.
![Point to Point Network �Airlines fly passengers from point A to point B with Point to Point Network �Airlines fly passengers from point A to point B with](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-4.jpg)
Point to Point Network �Airlines fly passengers from point A to point B with no stops in between (direct flight). �Better utilization of aircraft and crews. �Minimize travel time �No need to disembark and transfer to another plane. �No need to rely on other flights being on time at a hub airport. �The network will not be as affected by weather or delays.
![Disadvantages of the Point to Point Network �Many cities may not operate on a Disadvantages of the Point to Point Network �Many cities may not operate on a](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-5.jpg)
Disadvantages of the Point to Point Network �Many cities may not operate on a point to point network. �Smaller cities may not operate on these point to point networks because of demand. �Higher fares. �You pay for convenience.
![Hub and Spoke Network �Many airlines operate centralized hub airports. �Typically larger in size Hub and Spoke Network �Many airlines operate centralized hub airports. �Typically larger in size](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-6.jpg)
Hub and Spoke Network �Many airlines operate centralized hub airports. �Typically larger in size and located in larger cities with the ability to handle hundreds of daily flights. �Equation of n-1 routes. �Network of 10 destinations requires 9 routes. �Large hubs provide travelers with hundreds of flight options and locations to travel to. �Hubs fly to smaller airports that point to point networks may avoid.
![Disadvantages of the Hub and Spoke Network �Congestion at the hub airport. �Airline runs Disadvantages of the Hub and Spoke Network �Congestion at the hub airport. �Airline runs](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-7.jpg)
Disadvantages of the Hub and Spoke Network �Congestion at the hub airport. �Airline runs a tight schedule with as many incoming and outgoing flights as possible. �This can lead to overcrowding at the airport. �Passenger inconvenience. �Passengers must disembark and connect to a second flight to reach their final destination. �Connecting flights may be hindered by delays and loss of personal belongings. �Weather and general delays can impact the whole system.
![Airplane Manufacturers Input �Manufacturers seem to have picked sides in the argument between the Airplane Manufacturers Input �Manufacturers seem to have picked sides in the argument between the](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-8.jpg)
Airplane Manufacturers Input �Manufacturers seem to have picked sides in the argument between the two networks �Airbus, with the A 380 has gambled that airlines will fly smaller aircraft into its hubs, and then transfer passengers to larger aircraft. �Boeing, with its new 787 Dreamliner argues that passengers demand more point to point flights on smaller aircraft with greater availability.
![Conclusion �Deregulation occurred in 1978. �Allowed for greater competition in the industry as well Conclusion �Deregulation occurred in 1978. �Allowed for greater competition in the industry as well](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-9.jpg)
Conclusion �Deregulation occurred in 1978. �Allowed for greater competition in the industry as well as cheaper fares, improved scheduling, and greater choices in destinations. �Point to Point Networks �Airlines fly from point A to point B. �Simple network and great for passengers. �Not the most efficient network.
![Conclusion �Hub and Spoke Networks. �Airlines fly passengers from smaller airports into larger hub Conclusion �Hub and Spoke Networks. �Airlines fly passengers from smaller airports into larger hub](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-10.jpg)
Conclusion �Hub and Spoke Networks. �Airlines fly passengers from smaller airports into larger hub airports to transfer flights. �Airline can operate fewer flights to reach the same destinations as a point to point network. �Saves airline money in the long run.
![Thanks for Watching! Thanks for Watching!](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-11.jpg)
Thanks for Watching!
![Jet. Blue Result Jet. Blue Result](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-12.jpg)
Jet. Blue Result
![Airline Comparison �Compare different airlines that operate point to point and hub and spoke Airline Comparison �Compare different airlines that operate point to point and hub and spoke](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-13.jpg)
Airline Comparison �Compare different airlines that operate point to point and hub and spoke networks. �Jet. Blue – Hub and Spoke. �Southwest – Point to Point. �United - Pre-deregulation Airline. �Book a flight on each airline from Dulles to Orlando. �Look at Costs. �Total Travel Time. � Number of Connections if Applicable.
![Southwest Result Southwest Result](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-14.jpg)
Southwest Result
![United Result United Result](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-15.jpg)
United Result
![Table of Results Airline Connection? Jet. Blue Yes Southwest Yes United No Table of Results Airline Connection? Jet. Blue Yes Southwest Yes United No](http://slidetodoc.com/presentation_image_h/1c9762e7aaec1113e017a810c48c2143/image-16.jpg)
Table of Results Airline Connection? Jet. Blue Yes Southwest Yes United No
- Slides: 16