The concept of a hub airport has evolved widening its scope as a national civil aviation policy-making tool, due to the ability to deliver wider socio-economic benefits to a country. However, not all airports can be converted into hubs. This research proposes a methodological approach to structural analysis of the airport industry, that could be applied to determine the competitive position of an airport in a given aviation network and devise airport strategies and national policy measures to improve the current position of the airport. This study presents a twelve-group taxonomy of airports, which analyses the changing geography of the airport industry in the East (Asia and The Middle East). Multivariate data have been used in a two-step Agglomerative Hierarchical Clustering exercise which represents three airport strategies: namely, degree-of-airport-activity (size and intensity of operations), network strategies (international and domestic hub), and the market segmentation strategies (service and destination orientation). Principal Component Analysis has been utilised as a data reduction tool. The study confirms the general hypothesis that a sound macro environment and liberalised approach to economic regulation in the air transport industry are important for successful hub operations. In addition, it sheds light on the fact that while the factors of geographical advantage, economic development, urbanisation, tourism and business attractiveness, physical and intellectual infrastructure, and political and administrative frameworks, are all basic prerequisites (qualifiers) for successful hubbing in the region, those factors would not necessarily guarantee a hub status unless the governments are also committed to develop the sector and take timely decisions (differentiators) to allow airports to benefit from the first mover advantage. Application of the proposed taxonomy was tested on a case study of the major international airport of Sri Lanka, to provide policy inputs to develop the airport that is currently identified as being overshadowed by the mega hubs in the region
