Efficiency of airlines: Hub and Spoke versus Point-to-Point

Abstract

Purpose

The purpose of this paper is to study the efficiency and financial situation of Spanish airlines by conducting a comparative analysis of those operating in hubs and those that employ the point-to-point system.

Design/methodology/approach

Data envelopment analysis and accounting rates are implemented to do so.

Findings

The results show that hubs do not result in the companies that use them being efficient. Instead, it is the charter, low-cost and private flight operators that best manage their resources.

Originality/value

The study makes a novel contribution to the literature, as there has been no research on Spanish airlines that compares the two types of operators (hubs and point to point).

Citation

Marti, L., Puertas, R. and Calafat, C. (2015), "Efficiency of airlines: Hub and Spoke versus Point-to-Point", Journal of Economic Studies, Vol. 42 No. 1, pp. 157-166. https://doi.org/10.1108/JES-07-2013-0095