Armchair CEO - Where would you build a hub?
#16
FlyerTalk Evangelist
Join Date: Apr 2001
Location: Denver, CO
Programs: UA Silver, Bonvoy Gold, Hyatt Discoverist
Posts: 21,544
#18
Original Poster
Join Date: Sep 2007
Location: Central Mass
Programs: Independent
Posts: 4,829
The key to getting the #1 valuation (which I did three times) is hubbing at the top 20 US airports, but not flying to the top 50 world airports. You make your money flying where everyone else doesn't fly--obviously does not work that way in the real world. Snagging the last gates in mid-sized European and Asian airports was also a huge competitive advantage--especially if no other US-based airlines had acquired a gate there. That was like printing money. You only start flying to the top 50 world airports closer to the end of the game when most people have quit.
#19
Join Date: Jan 2010
Posts: 9,307
You can have stop offs on your spokes. Examples with EK are DXB-BKK-HKG and DXB-CMB-SIN amongst others. These make less than ideal routings, but the other advantages of DXB already described would outweigh the disadvantages.
Last edited by ft101; May 20, 2015 at 1:39 pm
#22
Join Date: Jul 2011
Programs: OneWorld Emerald (BA GGL), *A Silver (Miles & Less), Skyteam Pleb (KLM FlyingBlue), Mucci Platinum
Posts: 904
#23
FlyerTalk Evangelist
Join Date: Nov 2006
Location: Bangkok or San Francisco
Programs: United 1k, Marriott Lifetime PE, Former DL Gold, Former SQ Solitaire, HH Gold
Posts: 11,886
Bangkok would actually be more "centric" than Singapore but Suvarnabhumi doesn't have the infrastructure to support a hub airline like Changi does.
A hub in Singapore captures the dynamic economies of Asia and in particular the growing economies of ASEAN and China. Dubai is yesterday's news.
IMO.
#24
Join Date: Jul 2011
Programs: OneWorld Emerald (BA GGL), *A Silver (Miles & Less), Skyteam Pleb (KLM FlyingBlue), Mucci Platinum
Posts: 904
However, for a Gulf-based hub (not just DXB, but anywhere else in the region without visa or other restrictions) the geographical reality is that your number of transfer opportunities increases materially. You’re no longer limited to your immediate catchment area – instead you become an intercontinental connector.
The import-export guy going from Guangzhou to Lagos? The IT executive from Bangalore to Seattle? The oil technician from Jakarta to Oslo? The émigré from Glasgow to Durban? The Gujarati trader from Ahmedabad to Dar Es Salaam? The holidaying family from KL to Orlando? The businessman from Taipei to Sao Paolo? The hotelier from Nice to Ho Chi Minh City? The vintner from Adelaide to Lyon? The intrepid tourist from Osaka to Casablanca?
These are all one-stop flights via the Gulf, at relatively minimal deviations from their Great Circle routes.
#25
FlyerTalk Evangelist
Join Date: Nov 2006
Location: Bangkok or San Francisco
Programs: United 1k, Marriott Lifetime PE, Former DL Gold, Former SQ Solitaire, HH Gold
Posts: 11,886
Your examples show exactly why SIN is not optimally positioned. SIN doesn’t make sense as a transfer point except if you are going from Europe and certain parts of Asia to and from Australia, New Zealand, Indonesia and Malaysia. Oh, okay, I’ll give you Brunei too. Every hub has its equivalent local catchment area – and that’s Singapore’s. Furthermore, there are already existing nonstop options on almost every one of the above routes except for ICN-PER.
However, for a Gulf-based hub (not just DXB, but anywhere else in the region without visa or other restrictions) the geographical reality is that your number of transfer opportunities increases materially. You’re no longer limited to your immediate catchment area – instead you become an intercontinental connector.
The import-export guy going from Guangzhou to Lagos? The IT executive from Bangalore to Seattle? The oil technician from Jakarta to Oslo? The émigré from Glasgow to Durban? The Gujarati trader from Ahmedabad to Dar Es Salaam? The holidaying family from KL to Orlando? The businessman from Taipei to Sao Paolo? The hotelier from Nice to Ho Chi Minh City? The vintner from Adelaide to Lyon? The intrepid tourist from Osaka to Casablanca?
These are all one-stop flights via the Gulf, at relatively minimal deviations from their Great Circle routes.
However, for a Gulf-based hub (not just DXB, but anywhere else in the region without visa or other restrictions) the geographical reality is that your number of transfer opportunities increases materially. You’re no longer limited to your immediate catchment area – instead you become an intercontinental connector.
The import-export guy going from Guangzhou to Lagos? The IT executive from Bangalore to Seattle? The oil technician from Jakarta to Oslo? The émigré from Glasgow to Durban? The Gujarati trader from Ahmedabad to Dar Es Salaam? The holidaying family from KL to Orlando? The businessman from Taipei to Sao Paolo? The hotelier from Nice to Ho Chi Minh City? The vintner from Adelaide to Lyon? The intrepid tourist from Osaka to Casablanca?
These are all one-stop flights via the Gulf, at relatively minimal deviations from their Great Circle routes.
Now, Guangzhou to Bataam? Dozens every day. KL to SFO? Hundreds every day. Taipei to Sao Paolo as compared to Taipei to Perth or Singapore or Jakarta or SFO? No comparison at all.
Again, while the routes you describe are better served through DXB, comparing the number of flyers who want those routes compared to routes in Asia, and comparing the potential growth of business in Asia as compared to Europe, the future points toward SIN.
#27
Join Date: Jun 2006
Location: STL
Posts: 1,546
STL because I'm completely biased. But for the US, it would be a decent option. Right in the middle of the US. We don't have the weather issues ORD has. STL has a newly remodeled terminal and plenty of gates. Plus it would give Southwest a run for their money, it seems like they aren't the cheapest option nearly as often as they used to be, I think they've gotten quite comfortable here in STL with their mini fortress hub.
#28
Moderator: UK and Ireland & Europe
Join Date: Jan 2003
Location: Biggleswade
Programs: SK*G, Lots of Blue Elsewhere
Posts: 13,611
#30
Moderator: UK and Ireland & Europe
Join Date: Jan 2003
Location: Biggleswade
Programs: SK*G, Lots of Blue Elsewhere
Posts: 13,611