View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Elektronische Publikationen der Wirtschaftsuniversität Wien ePubWU Institutional Repository Michael Uher Airport Dubai - Evaluation of Dubai as a First Choice Hub for International Travellers Working Paper Original Citation: Uher, Michael (2005) Airport Dubai - Evaluation of Dubai as a First Choice Hub for International Travellers. Schriftenreihe des Instituts für Transportwirtschaft und Logistik - Verkehr, 03/2005. Institut für Transportwirtschaft und Logistik, WU Vienna University of Economics and Business, Vienna. This version is available at: http://epub.wu.ac.at/1406/ Available in ePubWU: June 2010 ePubWU, the institutional repository of the WU Vienna University of Economics and Business, is provided by the University Library and the IT-Services. The aim is to enable open access to the scholarly output of the WU. http://epub.wu.ac.at/ Institut für Transportwirtschaft und Logistik Institute of Transport Economics and Logistics Vienna University of Economics and Business Administration Schriftenreihe des Instituts für Transportwirtschaft und Logistik Nr. 3 (2005) Uher, Michael Airport Dubai – Evaluation of Dubai as a First Choice Hub for International Travellers Herausgeber: die Professoren des Instituts für Transportwirtschaft und Logistik Airport Dubai - Evaluation of Dubai as a First Choice Hub for International Travellers Michael Uher Vienna University of Economics and Business Administration Institute of Transport Economics and Logistics Professor Sebastian Kummer II Contents Contents................................................................................................................................................... III List of Illustrations ..........................................................................................................VI List of Tables..................................................................................................................IX List of Abbreviations.......................................................................................................XI Airlines ......................................................................................................................XII Airports .....................................................................................................................XIII Abstract ........................................................................................................................1 1. Introduction and Historic Process ..............................................................2 2. Basic Terms and Definitions........................................................................7 2.1. Airport .............................................................................................................7 2.2. Hub .................................................................................................................8 2.2.1. General Definition of a Hub.............................................................................8 2.2.2. Types of Hubs...............................................................................................10 2.2.2.1. Joop Krul.......................................................................................................10 2.2.2.2. The Boston Consulting Group.......................................................................10 2.2.2.3. Rüdiger Sterzenbach, Roland Conrady and Walter Fauska.........................13 2.2.2.4. Kenneth Button, Kingsley Haynes, Roger Stough ........................................14 2.2.2.5. Wilhelm Pompl..............................................................................................15 2.2.3. Focus City.....................................................................................................15 3. Accessibility Theories and Methods.........................................................16 3.1. Accessibility Theories and Studies of Various Authors.................................16 3.1.1. R.J. Johnston ...............................................................................................18 3.1.2. Brian S. Hoyle and Richard D. Knowles ......................................................18 3.1.3. Gösta Ihde ...................................................................................................19 3.1.4. ETH Zürich: Axhausen/Tschopp/Fröhlich/Keller .........................................20 3.1.5. Siamak Baradaran and Farideh Ramjerdi ....................................................22 3.1.6. Britton Harris ................................................................................................23 3.1.7. Piet Rietveld and Frank Bruinsma ...............................................................24 3.1.8. Scottish Executive CRU ...............................................................................27 3.2. Accessibility Theories and Methods in the Civil Aviation Industry ................28 3.3. Accessiblity: Empirical Analysis of Hub-and-Spoke Systems .......................30 3.4. Application of the Concepts and Studies to the Thesis.................................31 III 4. Studies and Concepts about the Comparison of Hubs...........................32 4.1. Characteristics of Hubs.................................................................................32 4.1.1. Advantages of the Hub-and-Spoke System..................................................35 4.1.2. Disadvantages of the Hub-and-Spoke System.............................................41 4.1.3. Critical Review ..............................................................................................45 4.2. Criteria Affecting the Choice of Airports........................................................46 4.2.1. Passengers’ Perspectives ............................................................................47 4.2.2. Airlines’ Perspectives....................................................................................50 4.3. Approach to Hub Measurement....................................................................51 4.3.1. Strategic Quality of a Hub.............................................................................54 4.3.1.1. Geographic Centrality ...................................................................................54 4.3.1.2. Strength of Feed ...........................................................................................55 4.3.1.3. Local Traffic ..................................................................................................56 4.3.1.4. Hub Dominance ............................................................................................57 4.3.1.5. Expansion Capacity ......................................................................................59 4.3.1.6. Attractiveness to Passengers .......................................................................59 4.3.1.7. Hub Efficiency...............................................................................................60 5. Hypothesis and Analysis ...........................................................................65 5.1. General Overview and Concept of the Analysis ...........................................65 5.2. Presentation of the European-Asian Air Traffic.............................................66 5.2.1. The European-Asian Air Traffic in General...................................................66 5.2.2. The European-Asian Air Traffic via Dubai Airport.........................................68 5.3. Determinants of Measurement: Measurement Elements and Attributes ......70 5.4. Customer Segments, Demands and Expectations .......................................76 5.4.1. Business Travel and Business Travellers.....................................................84 5.4.1.1. Corporate Business Travellers......................................................................94 5.4.1.2. Independent Business Travellers..................................................................95 5.4.2. Leisure Travel and Leisure Travellers...........................................................95 5.4.3. Connecting Passengers................................................................................97 5.4.4. Local Passengers .......................................................................................103 5.5. Empirical Findings.......................................................................................104 5.5.1. Price and Yield............................................................................................105 5.5.1.1. Economy Class...........................................................................................112 5.5.1.2. Business Class ...........................................................................................114 5.5.2. Aeronautical Charges, Taxes and Access Costs........................................116 5.5.2.1. Aeronautical Charges ................................................................................116 IV 5.5.2.2. Forms of Aeronautical Charges ..................................................................117 5.5.2.3. The Level of Aeronautical Charges, the Impact and the Criticism..............120 5.5.2.4. Access Costs ..............................................................................................126 5.5.3. Safety..........................................................................................................127 5.5.4. Schedule, Schedule Convenience