Hub and Spoke


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  • In the airline industry, H&S networks allow airlines to offer a greater variety for service between city-to-city pairs, permit economies of scale in terms of passenger consolidation along frequently traveledspokes, and to a certain extent allow an airline to dominate market share in a particular region.
  • Hub and Spoke

    1. 1. P 06 HUB AND SPOKE Win Min Hein
    2. 2. CONTENTS <ul><li>Problem analysis </li></ul><ul><li>H&S </li></ul><ul><li>Role of terminals in H&S </li></ul><ul><li>Major Hub of air ports and functions </li></ul><ul><li>Major Sea Ports and their function of Sea Port </li></ul><ul><li>Cost Basic of H&S </li></ul><ul><li>Pros and Cons of H&S </li></ul><ul><li>Hubbing Agency and their Role </li></ul><ul><li>Solution for Problem Statement </li></ul><ul><li>international Aviation Controls </li></ul><ul><li>Conclusion </li></ul><ul><li>References </li></ul>
    3. 3. Problem Analysis
    4. 4. Hub and Spoke Network <ul><li>H&S network involves a series of nodes (hubs), connected by arcs (spokes) that represent viable transportation alternatives between two nodes. </li></ul>
    5. 5. Role of Terminals <ul><li>A terminal may be defined as any facility where freight and passengers are assembled or dispersed </li></ul><ul><li>Terminals may also be points of interchange involving the same mode of transport </li></ul><ul><li>Terminals may also be points of interchange between different modes of transportation </li></ul>
    6. 6. Major Hub of Air Ports & Routes of the World
    7. 7. Functions of Air Port <ul><li>Provide specific facilities and equipment to accommodate the traffic they handle. </li></ul><ul><li>Gateway for Air crafts for landing and departing </li></ul><ul><li>Interchange for passengers and Cargos </li></ul><ul><li>Provide transportation facilities </li></ul><ul><li>Airplane servicing </li></ul>
    8. 8. Major Seaports of the World
    9. 9. Function of Sea Ports <ul><li>Provide specific facilities and equipment to accommodate the traffic they handle. </li></ul><ul><li>Interchange for passengers and Cargos </li></ul><ul><li>Ships servicing </li></ul>
    10. 10. Cost Comparison of H&S & P2P   Point to point H&S No of routes 32 16 cost 10000 10000 Total Cost 320000 160000 Save 160000
    11. 11. Pros and Cons of H&S Pros Cons Spokes are simple, and new ones can be created easily. Inflexible, changes at the hub, or even in a single route affects the whole network. Scheduling is convenient since there are few routes, with frequent service. The hub constitutes a bottleneck in the network. Complicated operations can be carried out at the hub, rather than at every node. Delays at a spoke can also affect the whole network. Small number of routes generally leads to more efficient use of transportation resources. Cargo must pass through the hub before reaching its destination, results in longer journey.
    12. 12. Hubbing Agency and Their Roles <ul><li>Hubbing agents facilitate the movement of goods in a hub-and-spoke model </li></ul><ul><li>Specialize in the collection and the routing of parcels throughout the world (UPS, FeDex) </li></ul>
    13. 13. Solution for North America Hub for N-America at Los Ageles
    14. 14. Solution for Europe Hub for Europe at Munich
    15. 15. Solutions for Asia Pacific Hub for Asia Pacific Shanghai Singapore
    16. 16. International Aviation Controls
    17. 17. Conclusion <ul><li>We learn Hub and Spoke Model in Distribution. </li></ul><ul><li>Roles of Hubbing Agents in Distribution Channel </li></ul><ul><li>How international air freedom rights important in air-freight </li></ul>
    18. 18. References <ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>