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Efficiency of airlines: Hub and Spoke versus Point-to-Point

Efficiency of airlines: Hub and Spoke versus Point-to-Point Purpose – The purpose of this paper is to study the efficiency and financial situation of Spanish airlines by conducting a comparative analysis of those operating in hubs and those that employ the point-to-point system. Design/methodology/approach – Data envelopment analysis and accounting rates are implemented to do so. Findings – The results show that hubs do not result in the companies that use them being efficient. Instead, it is the charter, low-cost and private flight operators that best manage their resources. Originality/value – The study makes a novel contribution to the literature, as there has been no research on Spanish airlines that compares the two types of operators (hubs and point to point). http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economic Studies Emerald Publishing

Efficiency of airlines: Hub and Spoke versus Point-to-Point

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0144-3585
DOI
10.1108/JES-07-2013-0095
Publisher site
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Abstract

Purpose – The purpose of this paper is to study the efficiency and financial situation of Spanish airlines by conducting a comparative analysis of those operating in hubs and those that employ the point-to-point system. Design/methodology/approach – Data envelopment analysis and accounting rates are implemented to do so. Findings – The results show that hubs do not result in the companies that use them being efficient. Instead, it is the charter, low-cost and private flight operators that best manage their resources. Originality/value – The study makes a novel contribution to the literature, as there has been no research on Spanish airlines that compares the two types of operators (hubs and point to point).

Journal

Journal of Economic Studies – Emerald Publishing

Published: Jan 12, 2015

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