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The Role of Demand Uncertainty in Airline Network Structure

Barla, Philippe; Constantatos, Christos - Département d'Économique, Université Laval - 1999

In this paper, we provide another reason that may explain the adoption of the hub-and-spoke network structure in the airline industry. We show that when an airline has to decide on its capacity before the demand conditions are perfectly known, a hub-and-spoke network structure by pooling...

Persistent link: https://www.econbiz.de/10005796024