Analysis Of Hub Airport Competition And Cooperation Model

Since entering the new century, airline industry becomes an indispensable component of world economy relies on its advantages, such as convenient, efficient, wide range of spatial span. It is the fifth shock wave for world economy after ocean shipping, inland water transport, especially the liberalization of world trade and the rapid development of e-commerce facilitate the demand for air cargo. Air cargo has many advantages, such as efficient, lower breakage rate, high safety, shorter infrastructure cycle, and has more prominent in the aspect of the long-distance transportation of high value goods, which compared to other transport mode. It is these advantages support, air cargo industry has become an integral part of the world economy.Currently, hub network shows its superiority gradually in air transport, it has a strong appeal for reflects the economies of scale fully, and deploys the limited resources of airlines. Due to the continents or regions can only form few international hub airport, therefore hub airports around competition becomes fierce increasingly. In this paper, from the hub network design perspective, the relationship between airport, airline, cargo OD is analyzed; Airport affiliated costs as the main basis of competition between hub airport, establishing the objective functions of minimum cost for airlines, maximum income for two hub airports, and appeals to the airline for hub airports in the utility function; Four scenarios are analyzed that perfect competition between the hub airports, perfect cooperation between the hub airports, cooperation between the hub airports, cooperation between the airlines and the hub airports as a whole. The empirical results validate the effectiveness of the model and algorithm, it also shows that in the short term hub airport needs to actively adjust the affiliated costs to maximize their capacity and competitiveness, and in the long term cooperates with other hub airports or forms a strategic alliance with dominant airlines are benefit to the improvement of market share.