Hub network design for sparse travel demand within the African aviation industry

Abstract

This paper analyses a study aimed at testing the cost effectiveness of designing a hub and spoke network (H&S network”) for Africa that allows airlines to reduce the costs of travel and increase connectivity. Various hub networks are designed using hub location methodologies which work on the transport economics principle that the operating costs in a network are minimised through the economies of scale achieved when flow is consolidated on routes. Different hub networks are then designed, costed and analysed to reveal that the best option for a hub network is the so-called geo-political network. A geo-political network is where hubs are created in the North, South, East and West of Africa, at airports with strong political influence, high passenger demand, modern technology and infrastructure. This result furthermore highlights the need for the various geographical regions on the Continent to work together to implement the Yamoussoukro Decision at a regional level and thereby, through the creation of hubs, increase accessibility and affordability of air travel within Africa.