FITM The Use of The Hub and Spoke Model in Aviation Presentation

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Preparation of a presentation: Creating an Outline The hub and Spoke Models used by Airlines The outline Introduction main idea The hub and spoke approach reduces airline operating expenses and helps fill seats on each plane; airlines made more money after using this strategy. Supporting ideas Airlines realize profit by adopting this model through the continuous movement for loads and passengers thanks to centralized handoffs, which act as the hub. Reduced lengths-of-haul help improves scheduling, reduce transit time, and help drivers comply with hours-of-service regulations, thus fewer fines, and overtime payments. Consistent on-time performance enhances service levels and ensures passengers arrive in the right place at the right time, thus confidence in the service delivery. The approach that I intend to use in my presentation There are various ways I can use to begin the presentation, which consist of narrative, persuasive, argumentative, and informative. The narrative approach is the most appropriate for the topic since it is thoughtful and compelling. I may gather data and essential information, such as the audience and the aim of the presentation. In addition, I can deliver the issue by arranging the events and thoughts in a logical manner that makes them entertaining to listen to. The Presentation The fact that individuals can land in other countries without necessarily incurring an extra cost while using airline services has always fascinated me. At times, due to the operating mechanism set out by different airline services, people can find themselves in various worldwide destinations. The travel patterns have since changed, and many airlines struggle with carrying capacity, which has led to subsequent losses. Various firms analyzed their situation crisis and opted to adopt an approach that could work best for them. The hub and spoke model and the point-to-point mode are the two most frequent models. These are controlled by the volume and nature of the airline. The hub-and-spoke network links locations via more than one airport, leading in most trips requiring two flights. This allows airlines to optimize the number of passengers on each trip. When wide-body planes were the primary emphasis for most airline companies, hub-and-spoke techniques enhanced profit margin. When the legislative period ended, the foundations of the huband-spoke paradigm were in place. According to a 2008 analysis of airline modeling approaches, trunk airlines like United, Delta, and American were already focusing on Dallas, Chicago, and Atlanta. Those scale economies and the functioning of the entire travel experience helped immensely in the coming decades. Some airlines decided to adopt the hub and spoke approach since it seems the most convenient. Airlines benefit from this strategy through the uninterrupted movement of freight and people via centralized handoffs, which serve as the hub. Furthermore, shorter hauls simplify planning, save transit time, and assist drivers in complying with hours-of-service restrictions, resulting in fewer penalties and overtime payments. Furthermore, regular on-time performance raises service standards and assures customers arrive at the correct location at the right time, instilling trust in service delivery. If a hub isn't a full-fledged departures center, an airline can maximize the airplane's capacity there. Conversely, the hub-and-spoke system differs slightly from the point-to-point approach. Rather than flying a large number of flights in and out of one or two big airports, the point-to-point strategy stresses flying straight between two cities of any size. For instance, Aer Lingus operated straight between Manchester and Bristol rather than linking the two to Dublin. Before the deregulation of air transport in the 1970s, the point-to-point model was quite "prevalent" in the United States. Before 1978, the government regulated the airplanes' routes; hence, many airlines operated direct, low-demand flights between minor cities. As a result, many aircraft were not filled, driving up seat travel costs and prices for tickets. Decreased transit time is one of the significant benefits of the point-to-point concept. Travelers might save time by avoiding extended stopovers between interconnecting flights and avoiding the penalties of a postponed journey. If Aer Lingus' Bristol-Dublin flights, for instance, were disrupted due to inclement weather, customers would have to reschedule their journey from Dublin to Manchester. Travelers would not have to reschedule another "spoke" trip if the BristolManchester point-to-point plane was canceled, as they would under the hub-and-spoke scheme. In conclusion, for much bigger airlines, the hub and spoke model is the way to maximize profit. Though point-to-point cuts on flight time, it is only essential for smaller airlines that do not engage in longer flights. Works Cited Fu, Xiaowen, et al. "Exploring network effects of point-to-point networks: An investigation of the spatial patterns of Southwest Airlines’ network." Transport Policy 76 (2019): 36-45. https://www.sciencedirect.com/science/article/pii/S0967070X17308983 Mohri, Seyed Sina, et al. "Airline hub-and-spoke network design based on airport capacity envelope curve: a practical view." Computers & Industrial Engineering 125 (2018): 375393. https://www.sciencedirect.com/science/article/pii/S0360835218304261 Parsa, Mostafa, et al. "Green hub-and-spoke network design for aviation industry." Journal of cleaner production 229 (2019): 1377-1396. https://www.sciencedirect.com/science/article/pii/S0959652619312624 Hub and Spoke Model Bader Bin Sultan Professor Amy Laakman 14/02/2022 My thematic statement: the hub and spoke model lowers airlines' operations costs and helps fill the seats on each aircraft; airlines turned more profits after adopting this model. Introduction • Various airlines have adopted different models that govern how they make their daily flights. • The two main common models are the hub and spoke model and the point to point mode. These are adopted based on the size and nature of airlines. • The hub and spoke model is a network in which an airline carries passengers between two destinations and links people from distant locations via its hub. As a result of these routes, additional cities are linked to the hub city (Junxiang, Jin & Jingni, 2020). • As for the point to point originates and ends at a single point of departure and arrival for an airline. In another way, it indicates that the airline is solely concerned with delivering customers from one place to another and is not interested in connecting passengers between and via the hub (Zgodavová, Rozenberg, & Szabo, 2018). • With this in mind, the presentation will focus on how the hub and spoke model lowers airlines' operations costs and helps fill the seats on each aircraft; airlines turned more profits after adopting this model. Discussion • One of the ways airlines realize profit by adopting this model is by the continuous movement for loads and passengers thanks to centralized handoffs, which act as the hub. • Moreover, reduced lengths-of-haul help improves scheduling, reduce transit time, and help drivers comply with hours-of-service regulations, thus fewer fines and overtime payments (Fu, 2019). • Also, consistent on-time performance enhances service levels and ensures passengers arrive in the right place at the right time, thus confidence in the service delivery. • An airline can max out the capacity of the airplane at the hubs in case they were not a full-on departure center. This acts as extra income. • On the same note, they can also transfer passengers to another plane operating within its capacity as opposed to the almost empty one to avoid running into losses at the hub. • The main advantage of point to point model is reduced flight time though it is mainly applicable to smaller airlines as bigger ones might incur losses in the maintenance of the flights (Kallab, 2019). Conclusion • For much bigger airlines, the hub and spoke model is the way to maximize profit. • Though point-to-point cuts on flight time, it is only essential for smaller airlines that do not engage in longer flights. References Fu, X., Jin, H., Liu, S., Oum, T. H., & Yan, J. (2019). Exploring network effects of point-topoint networks: An investigation of the spatial patterns of Southwest Airlines' network. Transport Policy, 76, 36-45. Junxiang, X., Jin, Z., & Jingni, G. (2020, September). Optimization of Regional Hub-and-spoke Integrated Transportation Network: Empirical Analysis of Sichuan-Tibet Railway in China. In 2020 IEEE 5th International Conference on Intelligent Transportation Engineering (ICITE) (pp. 214-218). IEEE. Kallab, A. (2019). Airplane technologies and the return to the point-to-point model in commercial aviation. Zgodavová, Z., Rozenberg, R., & Szabo, S. (2018, August). Analysis of Point-to-Point versus Hub-and-Spoke airline networks. In 2018 XIII International Scientific Conference-New Trends in Aviation Development (NTAD) (pp. 158-163). IEEE.
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Explanation & Answer

View attached explanation and answer. Let me know if you have any questions.Hello, the two PowerPoint docs have similar content but different visual designs. You can pick the one that meets your taste. Besides, the total number of content slides are ten (which excludes the title and reference slides). Thank you for cooperation.

THE USE OF THE HUB AND
SPOKE MODEL IN AVIATION
Bader Bin Sultan
Professor Amy Laakman
23/02/2022

Thematic statement
• Why do big aircrafts prefer the hub and spoke
model to the point to point model?
• Thematic Statement: The hub and spoke
model lowers airlines' operations costs and
helps fill the seats on each aircraft; big airlines
gained more profits after adopting this model.

Introduction
• The fact that individuals can land in other countries
without necessarily incurring an extra cost while using
airline services has always fascinated me.
• The travel patterns have significantly changed, and
many airlines struggle with carrying capacity, which has
led to some incurring subsequent losses.
• Different airlines have analyzed their situation crisis
and in turn resorted to distinct operational models
which suit their nature and volume.
• The hub and spoke model and the point-to-point
mode are the two most frequently used by airlines and
have unique benefits.

Definition of the models
• The hub and spoke model is a network in which an
airline carries passengers between two destinations
and links people from distant locations via its
centrally located hubs (Junxiang, Jin & Jingni, 2020).
• Consequently, the hub city links to additional cities
known as spokes.
• The point to point model starts and ends at a
single point of departure and arrival for an airline.
• In this model, the airline is solely concerned with
delivering customers from one place to another and
not connecting them via the hub (Zgodavová,
Rozenberg, & Szabo, 2018).

How the hub and spoke differs from
the point-to-point approach
• Whereas the point-to-point strategy focuses on flying
straight between two cities, the hub and spoke concentrates
on streamlining a large number of flights in and out of one
or two big airports, signifying the hub and spoke.
• A notable example of a hub-and-spoke system is that of
Delta Airlines, which has its hub at Hartsfield Atlanta
International Airport that connects to numerous cities within
and outside the United States
• Besides, an example of the point-to-point approach is the
Aer Lingus, which operated straight between Manchester
and Bristol rather than...


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Excellent resource! Really helped me get the gist of things.

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