Concentration of Airline Operations at Individual Airports

It is shown that it is a natural property of air transportation networks for competitive airlines to concentrate their operations at individual airports serving a given market. This implies that a strategy of developing satellite airports is doomed to failure unless the competitives behavior of the airlines is restricted. The results are demonstrated by tracing out the implications of observed patterns of traveller behavior as regards choice of carrier on the optimal game strategy for any particular airline. Analytic results for a two airline, two airport situation are extrapolated to the more general case, and specific supportive evidence from current operations are cited.