Instead, McKinsey suggested a hub-and-spoke system, with 55 back-office centres serving 10-15 branches each.
Traditional carriers operate hub-and-spoke networks where 60% of passengers hop on connecting flights to get to their final destinations.
Some of these nimbler airlines specialize in point-to-point service, instead of the hub-and-spoke system used by the legacy carriers.
Businesses that once generated profit and jobs--heavy manufacturers, hub-and-spoke airlines, travel agencies, newspapers dependent on classified ad sales--can suddenly tumble.
Because, Mr Fallows argues, of the hub-and-spoke system, developed by the airlines since deregulation to cut their costs and fill their seats.
Idealab is designing a headquarters in a hub-and-spoke shape, reminiscent of the sort of structure favoured by evil geniuses in James Bond films.
But for all its promise of innovation, the A380 represents a bet-the-house wager on one of the most disliked same-old models of air travel: the hub-and-spoke.
Competition has spurred innovations such as hub-and-spoke routing systems and new low-cost carriers such as Southwest Airlines and JetBlue in America and easyJet and Ryanair in Europe.
Boeing doesn't take the current hub-and-spoke model as a given.
Crandall later converted and used deregulation to steamroll less nimble competitors with his efficient hub-and-spoke strategy, which feeds regional passengers into a central hub where they can transfer to other American flights.
The model that Mr Smith cooked up at Yale, based on a hub-and-spoke system of overnight air delivery, has since expanded to encompass a broad portfolio of businesses contributing to efficient supply chains.
While United, American, Continental, Delta, etc. fought each other toe-to-toe for customers in the hub-and-spoke airline wars (none making any money by the way) Southwest ferried people cheaply between smaller airports on direct flights.
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Virgin Atlantic had also expressed an interest, hoping to integrate bmi's short- and medium-haul routes in Europe, the Middle East and Africa with its own transatlantic routes to form a strong, Heathrow-based hub-and-spoke network.
Nothing that the industry has tried consolidation, bankruptcy, computer manipulation of pricing, frequent-flier programs, hub-and-spoke route plans, capacity cutbacks, and more has produced the level of consistent profitability that shareholders would expect from any other industry.
In my hometown of Boston, it would be nearly impossible, due to the fact that I live in the suburbs and the transit system is based on the same hub-and-spoke system the airlines employ.
The idea is to fan out across India, beginning in the New Delhi area, via a hub-and-spoke model, relying on smaller, general care hospitals in exurban communities and more specialized centers in larger urban areas.
It is tempting to want the Internet rebuilt to look more like a highly rational, centrally planned version of an airline system's hub-and-spoke model: big users near big content, as many direct routes as possible.
The entrance of new players at the national stage such as Southwest, JetBlue, and Virgin America, among many others, as well as the development of strong hub-and-spoke networks among the major airlines, put strong competitive pressure on the majors.
The smaller carriers that do have a significant percentage of hub-and-spoke routes, such as Mesa Air Group and SkyWest, do so as contract carriers for the Big Six: AMR, Delta Air Lines , UAL, Continental Airlines, Northwest Airlines and U.S. Airways.
On the other hand, the majors' strengthening of the hub-and-spoke networks (by which travelers go from A to B via a hub in airport C) imply that entry into new markets -- what in the industry is called "city-pairs" -- is relatively simple.
With airlines cleaving away from the hub-and-spoke system -- which once rigidly controlled arrival and departure times -- in favor of more or less continuous schedules and red-eye flights, the hotel industry needs to restructure its own arrival and departure policies to reflect modern traffic flow.
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