Debunking some common myths about airport hubs

Much of the passenger air transportation market is served through hub-and-spoke operations with traffic being funneled through a number of major airports. This system has come under attack as protective of the airlines that center their operations on large hubs and is often as result, seen as not serving the public interest. This paper looks at some of the arguments that have been laid against the hub-and-spoke system. It does not offer a balanced perspective in that there are many problems with the system that are not touched upon here, but rather it seeks to question some of the economic logic that has been used to attack the hub-and-spoke structure. While the issues extend to many air transportation markets, the focus here is primarily on the US domestic situation.