Many analysts and industry experts on the airline industry agree that the hub and spoke system...
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Many analysts and industry experts on the airline industry agree that the hub and spoke system enables airlines to achieve significant cost side benefits or so called "economies of scope". Yet, many of the airlines with the best financial returns in the industry are point to point carriers rather than configured as hub and spoke systems. Give a plausible explanation for why traditional hub and spoke carriers are generally not profitable overall or as some point to point carriers. Please do not rely on specific knowledge of any airlines - answer the question generally or conceptually. Use hypothetical examples to clarify your reasoning. 200-250 words. Many analysts and industry experts on the airline industry agree that the hub and spoke system enables airlines to achieve significant cost side benefits or so called "economies of scope". Yet, many of the airlines with the best financial returns in the industry are point to point carriers rather than configured as hub and spoke systems. Give a plausible explanation for why traditional hub and spoke carriers are generally not profitable overall or as some point to point carriers. Please do not rely on specific knowledge of any airlines - answer the question generally or conceptually. Use hypothetical examples to clarify your reasoning. 200-250 words.
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Answer rating: 100% (QA)
The hub and spoke system in the airline industry involves centralizing operations at a hub airport where passengers from various origins are funneled ... View the full answer
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
Posted Date:
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