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Benefits of a hub?


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#1
TheChellgames

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I know this is probably a stupid question but what are the benefits of a hub. When going to create one it lists nothing but bad things like 2x gate cost. I would assume theres benefits or no one would make hubs but im just curious what they are. Thanks:)



#2
KJS607

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If your airline has enough flights departing from a hub you start to get connecting passengers and it will start to help bolster your load factors and once the hub is large enough you can literally fill flights with connecting passengers but it doesn't have a massive advantage unless your airline is large enough, I've noticed a difference after about 4-5 gates used at the airport in question :)


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#3
konj1

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What it does in real life, filling empty seats with connecting passengers. They will fill routes where you send planes that are too big but you want to keep frequency or something, or if your opponent lowers a price on some route, connecting passengers can still fill a lot of your space. Connecting pax pay less but that's OK when you have a profitable aircraft.

 

Gate cost is not such a big expense if you have good routes, and after you build a terminal even bad ones with small planes will make sense because cost per gate with a terminal is very low, you don't have to worry about that too much.



#4
jdub

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I know this is probably a stupid question but what are the benefits of a hub. When going to create one it lists nothing but bad things like 2x gate cost. I would assume theres benefits or no one would make hubs but im just curious what they are. Thanks:)

 

The only benifit of a hub is if you only focus on hub cities. Hubs fill up flights with connecting passengers, only open a hub if it is where you will focus your flights.



#5
KJS607

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I must say unless your going for a hub and spoke network, the effect is somewhat diluted :P


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