lecture 9-hub and spoke operation
TRANSCRIPT
![Page 1: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/1.jpg)
Lecture 9: Hub-and-Spoke
Operations
By: Zuliana Ismail
![Page 2: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/2.jpg)
Question Bank
1. a) Describe about Hub and Spoke operation
b) Discuss the advantages of Hub and Spoke
operation.
2. a) Explain why do some airports aim to become a Hub
b) Describe the strategies to be a Hub airport.
![Page 3: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/3.jpg)
Introduction
Point-to-point system:
The hub-and-spokes system works in comparison to the point-to-point system
Point-to-point system
Hub-and-spoke
Hub-and-spoke systems: A system of air transportation in which local airports offer air transportation to a central airport where long-distance flights are available
![Page 4: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/4.jpg)
DEFINITION OF A HUB
1. A hub for air travel is a major airport which has direct service to many other airports, but not necessarily by the same airline.
2. Also refer to an airport where a specific airline maintains large operations.
Hub airport: It is very big in size and handles international and domestic flight.
![Page 5: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/5.jpg)
SPOKE
• Definition
They are smaller compare to the hubs and handles domestic flights only.
Mostly it is located in every state in the country.
• Spoke - serving the small markets, profit and getting people from this market to big market (hub)
![Page 6: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/6.jpg)
General Idea of Hub & Spoke system
6
Flights depart from smaller airport (spoke) in the area
Converge on the Hub airport at approximately the same time
Passengers disembark from their flight and are shuttled to another aircraft
When all passengers boarded the main aircraft, airliners depart
![Page 7: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/7.jpg)
Example: KLIA as hub
7
KLIA(HUB)
Melaka (S4) Johor Baru
(S3)
Kuantan, Pahang (S2)
Kuala Terengganu
(S1)
Ipoh, Perak (S5)
Hub-departured a/cHub-departu
red a/c
Hub-arrival a/c
![Page 8: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/8.jpg)
Types of Hub
1. Networking hub
2. International hub
3. Regional hub
4. Domestic hub
8
![Page 9: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/9.jpg)
Atlanta Airport
• Hartsfield-Jackson Atlanta International Airport is considered to be the world's busiest airport, handling over 90 million travellers and 700,000t of cargo each year
![Page 10: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/10.jpg)
Changi Airport
• Singapore Changi Airport is a major aviation hub in Asia
![Page 11: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/11.jpg)
Heathrow Airport
• Heathrow: Airport Hub Of The UK• London Heathrow airport is used by over 90
AIRLINES that connect to over 180 international destinations.
• Nearly 46% of the airport's passengers choose Heathrow as an intermediary for their long-haul flights.
• Heathrow handles over 469,000 air transport movements a year, carrying nearly 68 million passengers around the world.
![Page 12: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/12.jpg)
KLIA
• KLIA is the regional hub
![Page 13: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/13.jpg)
ADVANTAGES of HUB to Passenger
More choices of route from hub, More choices of route, flight combination (for passengers):
passengers can make a choice to continue their destination from hub airport
Concentrate traffic: Only Hub have sufficient volume of traffic to offer
passengers and cargo the wide variety of destinations
Moving large numbers of people Moving large numbers of people to many cities many time
a day by funneling passengers through a central location (hub), where they can pick up connecting flight
![Page 14: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/14.jpg)
ADVANTAGES of HUB to Airlines
Airlines can better use their aircraft: Passenger with many more flight combinations, although these
combination almost always transfer at the hub, Flights from hubs are non-stop using larger and more comfortable
aircraft while flights to spoke airports are often use smaller aircraft.
Airlines can increase fare: because as they develop a hub, their products become more
attractive; more direct flights, more frequent flights, more connection and with these, they gain ability to mark up prices because according to data, customers are willing to pay for those product qualities.
Decrease the cost of airlinesThe more intense the hub-and-spoke system, the lower the
unit cost should be.
![Page 15: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/15.jpg)
![Page 16: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/16.jpg)
Disadvantages of HUB & SPOKE
HUB AIRPORT BECOMING VERY BUSYdifficult to handle
AMPLIFIES DELAYStop, change aircraft, Almost always require transfer at hub
LONGER TIME OF FLIGHTrelate to the changes of flight
CREATE PROBLEM FOR ATCscheduled of flights
16
![Page 17: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/17.jpg)
Goal: To Become a Hub
• Many main airports in the world have set their goal to become a hub.
• Especially in the Far East, India and Middle East.• There is intense competition amongst these countries to
achieve this goal. • This intense competition has made it more challenging for
airport managers and operators.• It has become a government effort, no more just the airport
owners or operators.• Professionals and consultants are being recruited to manage
these airports and provide advice.
![Page 18: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/18.jpg)
Why to become a hub.
• Good image and name for the nation.
• Better economy for the nation.
• More revenues for the airport operators/owners• Faster and attractive return on the airport project
investments.
• More tourism for the nation.
![Page 19: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/19.jpg)
Steps to become HUB
1. Provide Excellent Services (both Airside and Terminal)
2. Provide Adequate Facilities3. Build Attractive and Effective Terminal.4. Heavy Promotions.5. Suitable charge fees.
![Page 20: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/20.jpg)
Steps 1 – Provide Excellent Services
• There are four examples of services to make the airport as a major hub:
Ground handling
MRO
![Page 21: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/21.jpg)
Steps 1 – Provide Excellent Services
Toilet service
Baggage loading
![Page 22: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/22.jpg)
Steps 1 – Provide Excellent Services
• These are the ‘four pillars of strength’ that features an aircraft taking off smoothly and successfully.
Refueling service
Food service
![Page 23: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/23.jpg)
Step 2 – Provide Adequate Facilities
• Multiple and long runways for efficient an safe landings
• Apron large enough for many aircrafts to park
• Navigation aids for safe and easy landings
• Availability of fuel• Warehousing • Hangar• Maintenance Repair & Overhaul (MRO)
![Page 24: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/24.jpg)
O’Hare Airport Chicago x 7 runways
London Heathrow x 3 runways
![Page 25: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/25.jpg)
Step 3 – Build Attractive and Effective Terminal
• Ambiance and unique architectural • Passengers friendly • Good and adequate signage • Less walking for passengers• Many activities for passengers • Efficient public transportation • Hotels and rest rooms walking distance • Excellent retail stores • Becoming complexes/ mini township• Branded stores
![Page 26: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/26.jpg)
Dubai Airport Retail Shops
Dubai Airport Retail Shops
Ambiance Singapore ChangiAmbiance Singapore Changi
![Page 27: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/27.jpg)
Step 4 –Heavy Promotions
• Advertisement• Public Relations • Tax holidays, discounts, incentives • Special events
![Page 28: Lecture 9-Hub and Spoke Operation](https://reader033.vdocuments.net/reader033/viewer/2022061515/553d72ec55034684398b4698/html5/thumbnails/28.jpg)
Step 5 – Suitable charge fees.
• Reduction in fees during the startup (landing fees, terminal fees, etc)
• Improvements (renovations to terminal/offices, etc to accommodate airline operations)