Article Title
Competition for Hub Dominance: Some Implications to Airline Profitability and Enplanement Share
Abstract
The phenomenon of airline competition for hub dominance in terms of frequency concentration has been on the rise since deregulation. Using cross-sectional time-series data, this study explores the impact of hub dominance on airline profitability and enplanement share at the hub airport. The regression analysis finds a significant positive relationship between airline profitability and hub dominance. The relationship between an airline's share of passenger enplanements and its hub dominance seems to follow an S-curve indicating that high frequency shares are associated with even higher enplanement shares, and conversely.