The Opportunities and Threats of Turning Airports into Hubs

Abstract

This paper examines the opportunities and threats which arise when turning origin/destination airports into hubs. The analysis focuses on market development trends, competitive structures, especially in the light of airline network strategies and the growing rivalry between airports, and finally the potential financial impacts for the airport, including both investment efforts and the financial results from hub operations. We argue that in most cases a decision against converting a traditional origin/destination airport into a major transfer point is preferable to the transformation into a hub