Optimal design of hub-and-spoke networks with access to regional hub airports: a case for the Chinese regional airport system

Abstract

In recent years, China has experienced unprecedented growth in air travel demand. However, existing hub airports have not been able to satisfy the increasing traffic, resulting in serious congestion and/or flight delays. On the other hand, regional hub airports located near hub airports have been increasingly utilized. This paper examines the factors that influence the emergence of regional hub airports, and determines the potential regional hubs base on an improved p-hub locating problem model. With the empirical investigation, one result is, for instance, that Nanjing Lukou International Airport is identified to be the optimal regional hub airport for Pudong International Airport, China's busiest hub airport. Results also show that utilizing a regional hub airport would enhance the network performance in terms of reduced total network cost and congestion at the hub airport. It is also found that Low-Cost Carriers (LCC) would benefit from the optimized network.