Network aspects of the U.S. and E.U. air freight industries are examined. Distinctions between passenger and freight operations are made and the important role of an air carrier's network is discussed. In the U.S.A. after air cargo deregulation in 1977, all‐cargo carriers greatly increased their share of the air freight market by diversifying the range of air freight products offered and by developing multimodal networks. The all‐cargo operators organized their networks around single hub while the combination passenger/cargo carriers have developed interactive hub‐and‐spoke systems based around several regional hubs. These networks have evolved more for passenger needs than for cargo needs. The traffic distributions for several of the E.U. ‘flag carriers’ are then analysed. The E.U. carrier's network is typically a single hub operation, largely because regulations up until 1993 have prevented the development of hubs outside of the national territory. The liberalization of air transport now permits carriers to expand their networks within the E.U. by entering international community routes. E.U. carriers are likely to develop interactive hub‐and‐spoke networks involving several regional hubs as this network system has many economic and strategic advantages. Given congestion problems and the dominant position of flag carriers at their home ‘hub’ airports, these networks will develop through mergers and acquisitions rather than through independent growth. This liberalization will lead to further concentration of activity in the community's core area with many peripheral regions being made worse off as air services to smaller communities are reduced.


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    Title :

    The E.U. and U.S. air freight markets: network organization in a deregulated environment


    Contributors:

    Published in:

    Transport Reviews ; 14 , 3 ; 193-217


    Publication date :

    1994-07-01




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    Unknown





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