Airline business
12 important questions on Airline business
What is the S-curve effect, and what effect has more competition (>2) have on the S curve?
Name a few characteristics of an Hub.
A hub is a central point in an airline network
Temporal concentration needed for convenient transfer times
in the end, the airline decides what a hub is!
What implications on scheduling flights does the S-curve give airlines?
airlines are incentivised to use smaller aircrafts, higher frequency, lower load factor and therefore lower margins. All in order to gain more market share.
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Why are airlines focused on offering flights at the peak of demand?
Summarized, to meet growing demand or keep market share airlines try to:
increase frequency
increase aircraft size
Which airlines do not focus on frequency competition?
What did the paper of Givoni and Rietveld, (2010) tell us about frequency competition?
Lowering frequency will probably not disbenefit passengers Decreasing marginal utility of frequency.
In a hub and spokes network, how are variable costs increased or decreased, when is the effect of a variable cost decrease bigger?
What are the two main factors that determine an airline optimal output?
In what way do newer aircrafts form a threat to the hub/spokes network?
What are the most important factors whether an HS or P2P is used
How is competition determined by traditional airlines?
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