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    Lecture 9-Hub and Spoke Operation

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    zuliana
    This document discusses hub-and-spoke operations and strategies for airports to become hubs. It defines hubs and spokes, provides examples of major hub airports like Atlanta, Changi, and Heathrow, and explains the advantages for passengers and airlines. The document outlines steps airports can take to aim to become hubs, including providing excellent services, adequate facilities, an attractive terminal, heavy promotions, and suitable fees.

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    Lecture 9-Hub and Spoke Operation

    Uploaded by

    zuliana
    718 views28 pages
    This document discusses hub-and-spoke operations and strategies for airports to become hubs. It defines hubs and spokes, provides examples of major hub airports like Atlanta, Changi, and Heathrow, and explains the advantages for passengers and airlines. The document outlines steps airports can take to aim to become hubs, including providing excellent services, adequate facilities, an attractive terminal, heavy promotions, and suitable fees.

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    This document discusses hub-and-spoke operations and strategies for airports to become hubs. It defines hubs and spokes, provides examples of major hub airports like Atlanta, Changi, and Heathrow, and explains the advantages for passengers and airlines. The document outlines steps airports can take to aim to become hubs, including providing excellent services, adequate facilities, an attractive terminal, heavy promotions, and suitable fees.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    718 views28 pages

    Lecture 9-Hub and Spoke Operation

    Uploaded by

    zuliana
    This document discusses hub-and-spoke operations and strategies for airports to become hubs. It defines hubs and spokes, provides examples of major hub airports like Atlanta, Changi, and Heathrow, and explains the advantages for passengers and airlines. The document outlines steps airports can take to aim to become hubs, including providing excellent services, adequate facilities, an attractive terminal, heavy promotions, and suitable fees.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 28
    At a glance
    Powered by AI
    The key takeaways are that a hub and spoke system concentrates traffic and provides more routing options for passengers compared to point-to-point systems.

    Some advantages of a hub and spoke system are that it provides more routing choices for passengers, concentrates traffic allowing for more destinations to be served, and amplifies the traffic volume making additional destinations viable.

    Some steps to become a hub airport include providing excellent airside and terminal services, adequate facilities, an attractive and efficient terminal, heavy promotions, and suitable pricing of fees.

    Lecture 9:

    Hub-and-Spoke Operations
    By: Zuliana Ismail
    Question Bank

    1. a) Describe about Hub and Spoke operation


    b) Discuss the advantages of Hub and Spoke
    operation.

    2. a) Explain why do some airports aim to


    become a Hub
    b) Describe the strategies to be a Hub airport.
    Introduction
    The hub-and-spokes system works in comparison to the point-to-point
    system

    Point-to-point system:

    Point-to-point system

    Hub-and-spoke systems: A system of


    air transportation in which local
    airports offer air transportation to a
    central airport where long-distance
    flights are available

    Hub-and-spoke
    DEFINITION OF A HUB
    1. A hub for air travel is a major airport which has
    direct service to many other airports, but not
    necessarily by the same airline.
    2. Also refer to an airport where a specific airline
    maintains large operations.

    Hub airport: It is very big in size and handles


    international and domestic flight.
    SPOKE
    • Definition
    They are smaller compare to the hubs and
    handles domestic flights only.
    Mostly it is located in every state in the country.

    • Spoke - serving the small markets, profit and getting


    people from this market to big market (hub)
    General Idea of Hub & Spoke system
    Flights depart from smaller airport (spoke) in the area

    Converge on the Hub airport at approximately the same


    time

    Passengers disembark from their flight and are


    shuttled to another aircraft

    When all passengers boarded the main aircraft,


    airliners depart

    6
    Kuala
    Terengganu
    Example: KLIA as hub (S1)

    Ipoh,
    Perak
    (S5) a/c
    t u red
    par
    b-d e
    Hub-departu H u
    re d a/ c
    KLIA
    (HUB)
    Hub-arrival a/c
    Kuantan,
    Pahang (S2)

    Melaka
    (S4) Johor Baru
    (S3)

    7
    Types of Hub

    1. Networking hub
    2. International hub
    3. Regional hub
    4. Domestic hub

    8
    Atlanta Airport
    • Hartsfield-Jackson Atlanta International Airport is considered to be the world's
    busiest airport, handling over 90 million travellers and 700,000t of cargo each year
    Changi Airport

    • Singapore Changi Airport is a major aviation


    hub in Asia
    Heathrow Airport

    • Heathrow: Airport Hub Of The UK


    • London Heathrow airport is used by over 90
    AIRLINES that connect to over 180 international
    destinations.
    • Nearly 46% of the airport's passengers choose
    Heathrow as an intermediary for their long-haul
    flights.
    • Heathrow handles over 469,000 air transport
    movements a year, carrying nearly 68 million
    passengers around the world.
    KLIA
    • KLIA is the regional hub
    ADVANTAGES of HUB to Passenger
     More choices of route from hub,
     More choices of route, flight combination (for passengers):
    passengers can make a choice to continue their destination
    from hub airport
     Concentrate traffic:
     Only Hub have sufficient volume of traffic to offer
    passengers and cargo the wide variety of destinations
     Moving large numbers of people
     Moving large numbers of people to many cities many time
    a day by funneling passengers through a central location
    (hub), where they can pick up connecting flight
    ADVANTAGES of HUB to Airlines
     Airlines can better use their aircraft:
     Passenger with many more flight combinations, although these
    combination almost always transfer at the hub,
     Flights from hubs are non-stop using larger and more comfortable aircraft
    while flights to spoke airports are often use smaller aircraft.
     Airlines can increase fare:
     because as they develop a hub, their products become more
    attractive; more direct flights, more frequent flights, more
    connection and with these, they gain ability to mark up prices
    because according to data, customers are willing to pay for
    those product qualities.
     Decrease the cost of airlines
     The more intense the hub-and-spoke system, the lower the unit
    cost should be.
    Disadvantages of HUB & SPOKE

     HUB AIRPORT BECOMING VERY BUSY


     difficult to handle

     AMPLIFIES DELAY
     Stop, change aircraft, Almost always require transfer at hub

     LONGER TIME OF FLIGHT


     relate to the changes of flight

     CREATE PROBLEM FOR ATC


    scheduled of flights
    16
    Goal: To Become a Hub

    • Many main airports in the world have set their goal


    to become a hub.
    • Especially in the Far East, India and Middle East.
    • There is intense competition amongst these countries to
    achieve this goal.
    • This intense competition has made it more challenging for
    airport managers and operators.
    • It has become a government effort, no more just the airport
    owners or operators.
    • Professionals and consultants are being recruited to manage
    these airports and provide advice.
    Why to become a hub.

    • Good image and name for the nation.


    • Better economy for the nation.
    • More revenues for the airport operators/owners
    • Faster and attractive return on the airport project
    investments.
    • More tourism for the nation.
    Steps to become HUB

    1. Provide Excellent Services (both Airside and


    Terminal)
    2. Provide Adequate Facilities
    3. Build Attractive and Effective Terminal.
    4. Heavy Promotions.
    5. Suitable charge fees.
    Steps 1 – Provide Excellent Services
    • There are four examples of services to make
    the airport as a major hub:

    MRO

    Ground handling
    Steps 1 – Provide Excellent Services
    Baggage loading

    Toilet service
    Steps 1 – Provide Excellent Services
    • These are the ‘four pillars of strength’ that features
    an aircraft taking off smoothly and successfully.

    Food service

    Refueling service
    Step 2 – Provide Adequate Facilities
    • Multiple and long runways for efficient
    an safe landings
    • Apron large enough for many aircrafts
    to park
    • Navigation aids for safe and easy
    landings
    • Availability of fuel
    • Warehousing
    • Hangar
    • Maintenance Repair & Overhaul (MRO)
    n Heathrow x 3 runways

    O’Hare Airport Chicago x 7 runways


    Step 3 – Build Attractive and Effective
    Terminal
    • Ambiance and unique architectural
    • Passengers friendly
    • Good and adequate signage
    • Less walking for passengers
    • Many activities for passengers
    • Efficient public transportation
    • Hotels and rest rooms walking distance
    • Excellent retail stores
    • Becoming complexes/ mini township
    • Branded stores
    Dubai Airport Retail Shops

    Dubai Airport Retail Shops

    Ambiance Singapore Changi


    Ambiance Singapore Changi
    Step 4 –Heavy Promotions

    • Advertisement
    • Public Relations
    • Tax holidays, discounts, incentives
    • Special events
    Step 5 – Suitable charge fees.

    • Reduction in fees during the startup (landing fees,


    terminal fees, etc)
    • Improvements (renovations to terminal/offices, etc
    to accommodate airline operations)

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