The Temporal Configuration of Airline Networks

The deregulation of US aviation in 1978 resulted in the reconfiguration of airline networks into hub-and-spoke systems, spatially concentrated around a small number of central airports or 'hubs' through which an airline operates a number of daily waves of flights. A hub-and-spoke network requires a concentration of traffic in both space and time. In contrast to the U.S. airlines, European airlines had entered the phase of spatial network concentration long before deregulation. Bilateral negotiation of traffic fights between governments forced European airlines to focus their networks spatially on small number of 'national' airports. In general, these star-shaped networks were not coordinated in time. Transfer opportunities at central airports were mostly created 'by accident'. With the deregulation of the EU air transport market from 1988 on, a second phase of airline network concentration started. European airlines concentrated their networks in time by adopting or intensifying wave-system structures in their flight schedules. Temporal concentration may increase the competitive position of the network in a deregulated market because of certain cost and demand advantages.