Competition for Hub Dominance: Some Implications to Airline Profitability and Enplanement Share
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.