Network and hubs

Different types of hub


There are three different types of hub depending on the market and their location

The American Model

The American model links two medium-haul, essentially domestic flights. This system, which enabled national carriers to grow over many years, no longer seems appropriate today. In a market where there are very large volumes of traffic between major cities, direct flights are economically viable. It is in fact by taking over these routes and bypassing the majors’ hubs, that low-cost carriers have penetrated the U.S. market.  This phenomenon is a major factor behind the present difficulties encountered by traditional U.S. carriers, as 80% of their turnover is generated by domestic traffic.

The European Model

The European model links medium-haul flights with long-haul flights, thus enabling operators to channel small traffic flows which alone would not justify the opening of new services. This model still has a promising future ahead of it, as direct long-haul services out of Europe continue to be economically viable. By 2013, only London, Paris, Moscow and Frankfurt will have the potential for carrying more than 100,000 point-to-point passengers a year on more than five intercontinental routes.

The Gulf and Asian carriers’ model

This model, connecting long-haul flights with other long-haul flights, was developed by carriers in Southeast Asia (particularly Singapore Airlines), given their specific geographical situation. Today Emirates and Qatar Airways are using this model.