This paper focuses on the potential capability of specific airports to attract new services and carriers, once European aviation markets are fully deregulated. A network simulation model is developed for an airline operating in a deregulated market, whose economic objectives are profit maximisation and market dominance. The model simulates the potential profits that this hypothetical airline can expect if it adopts a hub-and-spoke network with a specific airport as its hub, and sets output and fares so as to maximise profits and deter entry by potential rivals.
|Number of pages||24|
|Journal||Journal of Transport Economics and Policy|
|State||Published - Sep 1996|