An analysis of the effects of European aviation deregulation on an airline's network structure and choice of a primary West European hub airport

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.