Connectivity and Competition in Airline Networks: A Complexity Analysis of Lufthansa's Network

Tinbergen Institute Discussion Paper 11-111/3

40 Pages Posted: 11 Aug 2011

See all articles by Aura Reggiani

Aura Reggiani

University of Bologna - Department of Economics

Peter Nijkamp

VU University of Amsterdam - Department of Spatial Economics; Tinbergen Institute

Alessandro Cento

KLM-Royal Dutch Airlines - Revenue Management Department

Date Written: August 11, 2011

Abstract

Information, communication and transport networks have always been in a state of flux, while they also influence each other. Extensive research efforts have been made to investigate the dynamics in the structure and use of networks, e.g., by means of network geometries, small-world effects and scale-free phenomena. We will illustrate these new developments on the basis of airline network evolution. The present paper provides a new contribution to the analysis of topological properties of complex airline networks. Using Lufthansa's networks as an example, this paper aims to show the empirical relevance of various network indicators - such as connectivity and concentration - for understanding changing patterns in airline network configurations. After an extensive discussion of various statistical results, a decision-aid method, viz. multi-criteria analysis, is used to investigate the robustness of our findings. The results highlight the actual strategic choices made by Lufthansa for its own network, as well in combination with its partners in Star Alliance.

Keywords: airline networks, complexity, connectivity, concentration, degree distribution, network geometry, multicriteria analysis

JEL Classification: L93

Suggested Citation

Reggiani, Aura and Nijkamp, Peter and Cento, Alessandro, Connectivity and Competition in Airline Networks: A Complexity Analysis of Lufthansa's Network (August 11, 2011). Tinbergen Institute Discussion Paper 11-111/3, Available at SSRN: https://ssrn.com/abstract=1908157 or http://dx.doi.org/10.2139/ssrn.1908157

Aura Reggiani (Contact Author)

University of Bologna - Department of Economics ( email )

Piazza Scaravilli, 2
Bologna, 40126
Italy

Peter Nijkamp

VU University of Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31 20 4446091 (Phone)
+31 20 4445611 (Fax)

Tinbergen Institute

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

Alessandro Cento

KLM-Royal Dutch Airlines - Revenue Management Department ( email )

Antwoordnummer 747
1110 VG Schiphol Airport
Netherlands

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