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

Joseph Berechman, Jaap De Wit

Research output: Contribution to journalArticlepeer-review

Abstract

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.

Original languageEnglish
Pages (from-to)251-274
Number of pages24
JournalJournal of Transport Economics and Policy
Volume30
Issue number3
StatePublished - Sep 1996

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