The Competitive Position of Hub Airports in the Transatlantic Market

This article puts forward the argument that the measurement of connectivity in hub-and-spoke networks has to take into account the quality and quantity of both direct and indirect connections. The NETSCAN model, which has been applied in this study, quantifies indirect connectivity and scales it into a theoretical direct connection. NETSCAN allows researchers, airports, airlines, alliances and airport regions to analyse their competitive position in an integrated way. Using NETSCAN, the authors analysed the developments on the market between northwest Europe and the United States (US) between May 2003 and May 2005. One of the most striking developments has certainly been the impact of the Air France-KLM merger and the effects of the integration of KLM and Northwest into the SkyTeam alliance on the connectivity of Amsterdam Schiphol. Direct as well as indirect connectivity (via European and North American hubs) from Amsterdam to the US increased substantially. The main reason for this increase is the integration of the former Wings and SkyTeam networks via the respective hub airports. Moreover, the extended SkyTeam alliance raised frequencies between Amsterdam and the SkyTeam hubs (Atlanta, Houston, for example), opened new routes (Cincinnati) and boosted the network between Amsterdam and France. As a result of the new routes and frequencies, Amsterdam took over Heathrow s position as the third best-connected northwest European airport to the US.