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when to open a hub?


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#1
pabloc

pabloc

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hi!

 

I'm running an airline, and I have 2 airports where I had to build 50 gates, one of them has only 400 slots left, the other one  about 1000, but I'm filling them quick.

 

I have not opened a hub so far, as I don't know if I have a need for it or not. I understand any flights to/from a hub are half price, but demand icreases. I was wondering if it's worthwhile to open a hub or the same effect is created just lowering the ticket prices and avoiding the extra costs of a hub.

 

I have been looking for info and I have not found anything that actually solves my doubts.

 

Thx a lot!



#2
pseudoswede

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The addition of connecting pax as well as ROI on building a terminal makes establishing a hub absolutely necessary. You need to establish a hub as early as possible, since the costs increase with each additional gate.

#3
pabloc

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thx swede, then I'll open them already

I'll let you know how it works out :)






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