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Network structure and capacity requirement: The case of China

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Abstract

This paper analyzes capacity requirement by alternative network structures. Based on a simple model, it is concluded that the capacity required under a hub-and-spoke network would be more than twice as large as the capacity required under a fully connected network. In recent years, China has experienced unprecedented growth in the demand for air travel, which has put continuous pressure on the expansion in airport capacity. Still as a developing country, China suffers from insufficient investment in infrastructure. Therefore, given scarce capacity, it may be more efficient for the major air carriers not to adopt the hub-and-spoke network in Chinese domestic markets.

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[Zhang, Yimin] China Europe Int Business Sch, 699 Hongfeng Rd, Shanghai 201206, Peoples R China


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Source

Transportation Research Part E: Logistics and Transportation Review

ISSN:1366-5545

Year:2010

Issue:2

Volume:46

Page:189-197

Powered by JCR@2010

ESI Discipline:ENGINEERING;

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