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Are US air carriers to be feared? : Implication of hubbing to North Atlantic competition

By Martin Dresner and Robert Windle

Abstract

A comparison was made of the passenger generating capacity of North American and European carrier hubs, using data from 1990. It was found that European carrier hubs were more effective at generating trans-Atlantic traffic than US and Canadian carrier hubs were. However, when US carrier observations were split between traditional overseas carriers (TWA and Pan American) and combined domestic and international carriers (e.g. Delta, American, United), it was found that the combined domestic and international carriers had hubs that equalled the European carrier hubs in traffic generating capability. This result provided an explanation for the recent US carrier increases in trans-Atlantic market share.

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