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Of the 544 hubs in the U.S., only 28 accounted for 73.03% of passenger enplanements in 1989. (Transponation Research Board, 1988). Despite some of the economic benefits of hubbing at those few hubs, congestion delay seems to affectairlines, passengers, airpons, Air Traffic Control (ATC) facilities and the environment. This paper attempts to quantify the magnitude of congestion costs to airlines and passengers. The analysis should prove useful in assessing aviation policy, evaluating projects, and allocating resources among different airports in the U.S. INTRODUCTION The phenomenon of hubbing has been on the rise since airline deregulation in 1978. The nowfamiliar pattern of multiple links emanating from a handful of hub airports has replaced the seeming hodgepodge that characterized many network systems under regulation. Hubbing occurs when airlines concentrate flights at a few airports that they use as collection-distribution centers for their passengers. Unlike the situation in the early days, when airlines had to make technical refueling stops, today's hubbing is motivated by the economic advantages of increased flight frequencies and by the economic advantage of operating larger aircraft. By consolidating passengers through a few selected airport hubs, an airline takes advantage of the resulting higher traffic volumes by operating relatively large and efficient aircraft; thus enjoying the economies of aircraft size (Kanafani & Ghobrial 1982). The airline can also raise the frequency of service it offers passengers to offset the increased travel time occasioned by the need to transfer. Moreover, by concentrating aircraft operations at a few hubs, an airline can JAAER, Spring 1992 dominate those hubs and take advantage of the phenomenon of the S-curve disproportionality between its enplanement share and frequency share at the hub airport; an airline with higher frequency share will capture even a higher enplanement share than its frequency share, and conversely, (Miller, 1979, Ghobrial, 1991). By dominating a hub an airline can also charge higher airfares to passengers originating from the hub region; thus, an airline can achieve higher profits. Using time-series data for a number of airlines (Ghobrial, 1991) found a positive and statistically significant relationship between an airline profitability index (measured by the percentage of airline profits divided by its revenue) and its frequency share at the main hub. Despite the inconvenience of transfer at the hub airport and the possibility of missing a connecting flight or losing baggage at the destination airport, hubbing has many benefits to passengers. For instance, passengers flying in thin traffic markets may not enjoy low airfares or flying in large jets if the airlines were to fly them nonstop between the end cities. Small airplanes cost more per-seat mile to operate and may require multiple technical stops for refueling. In fact, through multiple hub systems, passengers from small cities (e.g., Mobile, Alabama; Athens, Georgia; Greenville, South Carolina; etc.) can fly to any small and large cities in the world with relatively low airfares. Through connecting at a hub, passengers can also enjoy the convenience of frequent flights to and from that hub. This usually results in lower schedule delay which is defined as the waiting time between a passenger's most desirable departure time and the actual scheduled flight (Douglas & Miller, 1974). Flying large-size jets also increases the chances of finding a seat on the passenger's desired flight.

An Assessment of the Impacts of Congestion Delay at Major Hubs to Airlines and Passengers