A GEOGRAPHICAL ANALYSIS OF AIR HUBS IN SOUTHEAST ASIA

A GEOGRAPHICAL ANALYSIS OF AIR HUBS IN SOUTHEAST ASIA HAN SONGGUANG (B Soc Sci (Hons.)), NUS A THESIS SUBMITTED FOR THE DEGREE OF MASTER OF SOCIAL SCIENCES DEPARTMENT OF GEOGRAPHY NATIONAL UNIVERSITY OF SINGAPORE 2007 A Geographical Analysis of Air Hubs in Southeast Asia ACKNOWLEDGEMENTS It seemed like not long ago when I started out on my undergraduate degree at the National University of Singapore and here I am at the conclusion of my formal education The decision to pursue this Masters degree was not a straightforward and simple one Many sacrifices had to be made as a result but I am glad to have truly enjoyed and benefited from this fulfilling journey This thesis, in many ways, is the culmination of my academic journey, one fraught with challenges but also laden with rewards It also marks the start of a new chapter of my life where I leave the comfortable and sheltered confines of the university into the “outside world” and my future pursuit of a career in education I would like to express my heartfelt thanks and gratitude to the following people, without whom this thesis would not have been possible: I am foremost indebted to Associate Professor K Raguraman who first inspired me in the wonderful field of transport geography from the undergraduate modules I did under him His endearing self, intellectual guidance, critical comments and helpful suggestions have been central to the completion of this thesis A special word of thanks to you Ragu, my supervisor, mentor, inspiration and friend All faculty members at the Department of Geography, NUS who have taught me (hopefully well enough!) during my undergraduate and postgraduate days in the university and enabled me to see the magic behind the discipline that is Geography In particular, Professor Henry Yeung, Associate Professors Victor Savage, Shirlena Huang, Peggy Teo, Tim Bunnell, TC Chang, David Higgitt, Wong Poh Poh and Drs Carl Grundy-Warr, Pow Choon Piew and Noorashikin Abdul Rahman for their guidance, faith and belief in me all these years Dr Paul Barter from the Lee Kuan Yew School of Public Policy, NUS, whom I had learnt a lot about transport issues, both as an undergraduate and as a postgraduate student The administrative staff at the Department, Lai Wa, Pauline, Sakinah, Mrs Chong, Mr Lee, Mr Yong, Mr Tow, Mrs Chee and Mrs Lim for their excellent administrative support and help Faculty and staff from the University Scholars Programme who have helped deepen my scholarship and broaden my horizons All my teachers from years gone by for teaching me the finer things in life and moulding me into what I am today My beloved fellow current and former graduate students Chih Yuan, Daryl, Seeta, Monica, Hanglu, Desmond, Gu Ming, Yunmei, Winston, May, Brian, Choon Hon and Seng Lee who have made these two years of postgraduate studies some of the most memorable in my life i A Geographical Analysis of Air Hubs in Southeast Asia The friends whom I have made (and still continue to cherish) from GeogSoc and the geography honours class Thank you for all the fantastic memories and continuing to be an important part of my life My dearest students (especially those from the Field Studies module), whom I have had the greatest pleasure teaching as a graduate teaching assistant in my time here at the NUS, for challenging me to new heights, both intellectually and pedagogically All my anonymous survey respondents who have taken time to the survey Especially to my friends who have helped me disseminate the online survey to their contacts Mr Gerald Ng, Air Transport Manager, Civil Aviation Authority of Singapore for granting me an interview despite his hectic schedule from which I derived plenty of rich information used in this thesis My two anonymous markers for their time in reading this thesis and their critical comments and insights My family for their support and encouragement through undergraduate and graduate schools And finally, my fiancé and soon-to-be wife, Shi’an, for her understanding and support throughout my candidature even though it meant a delay in my career and our marriage plans It is her love that I will cherish and take with me as we journey on the rest of our lives no longer as individuals but as a wedded couple Songguang August 2007 ii A Geographical Analysis of Air Hubs in Southeast Asia TABLE OF CONTENTS Page Acknowledgements i Table of Contents iii Summary vi List of Tables vii List of Figures ix List of Plates x CHAPTER ONE: INTRODUCTION AND BACKGROUND 1.1 Preamble 1.2 Air Hubs and Geography 1.3 Aims, Objectives and Scope 1.4 Significance of Study 10 1.5 Methodology 11 1.6 Outline of Thesis 11 CHAPTER TWO: HUBBING – LITERATURE REVIEW AND KEY CONCEPTS 14 2.1 Introduction 14 2.2 Academic Writings on Air Hubs 14 2.3 Literature on the Geography of Air Hubs 16 2.4 Airports, Route Networks and the Global City Paradigm 20 2.5 The Network Focus in Air Transport 23 2.6 Hubbing and Hub Airports 25 2.6.1 Towards a Typology of Air Hubs 29 2.7 Hubbing – Benefits and Pitfalls 32 2.8 Regulation and Liberalization in the Industry 33 2.9 Chapter Summary 43 iii A Geographical Analysis of Air Hubs in Southeast Asia CHAPTER THREE: AIR HUB COMPETITION AND DEVELOPMENT IN SOUTHEAST ASIA 45 3.1 Introduction 45 3.2 The Nature of Air Hub Competition in Southeast Asia 49 3.3 The Developmental History and Overview of Selected Airports 53 3.3.1 Singapore Changi Airport 53 3.3.2 Kuala Lumpur International Airport 57 3.3.3 Bangkok Suvarnabhumi International Airport 61 3.4 Looking to the Future 64 3.5 Chapter Summary 67 CHAPTER FOUR: METHODOLODY FOR HUB ANALYSIS 69 4.1 Introduction 69 4.2 Data Source 70 4.3 Mapping Airport Networks 71 4.4 Network Matrix Analysis 73 4.5 Shimbel Index Analysis 74 4.6 Flight Frequency/Volume/Schedule Comparison 76 4.7 Connecting Passenger Numbers 77 4.8 Large Scale Quantitative Survey 77 4.9 In-depth Interviews 80 4.10 Chapter Summary 80 CHAPTER FIVE: FINDINGS AND ANALYSIS 82 5.1 Introduction 82 5.2 Network Analysis of Air Hubs in Southeast Asia 82 5.2.1 Spatial Networks of Air Hubs 82 5.2.2 The Regional Networks 83 5.2.3 The Global Networks 87 5.2.4 Network Matrix Analysis 93 5.2.5 Shimbel Index Analysis 94 5.3 Flight Frequencies, Volumes and Schedules 97 5.4 Incentives and Policies to Encourage Hub Development 102 iv A Geographical Analysis of Air Hubs in Southeast Asia 5.5 Air Hubs and National Carriers 102 5.6 The Impact of Low Cost Carriers 105 5.7 ASEAN and Open Skies 109 5.8 Chapter Summary 112 CHAPTER SIX: CASE STUDY – THE KANGAROO ROUTE 114 6.1 Introduction 114 6.2 Background 115 6.3 Intermediacy Analysis 123 6.4 The Current Situation 125 6.5 Supply Side Analysis – Airline Schedules 129 6.5.1 Frequencies and Volumes 138 6.6 Demand Side Analysis – Passenger Survey Findings 140 6.6.1 Airline Choice Factors 141 6.6.2 Airport Choice Factors 143 6.6.3 Kangaroo Route Scenario 145 6.6.4 Real Life Experiences at Hub Airports 148 6.7 Chapter Summary 150 CHAPTER SEVEN: SUMMARY AND CONCLUSION 151 7.1 Summary 151 7.2 Implications of Study & Future Research 152 7.3 Concluding Comments 156 LIST OF REFERENCES 158 v A Geographical Analysis of Air Hubs in Southeast Asia SUMMARY This research explores and examines the formation, development and the current role of airport hubs for civil aviation within the context of Southeast Asia The notion of “hub” is explained and the various measures by which hubs are defined are also critically analyzed The various processes that lead to or favour hub formation are also given some mention to draw linkages between the theoretical discussion and real world phenomena A brief overview of the developmental histories and trajectories of the major airports in the region is then provided to situate the research in its unique socio-economic and geopolitical context I explain why certain airlines and airports are more successful than others, and how hubbing is used to increase network coverage and reach The intricate linkages between airlines that use the sixth freedom rights and airports which situate themselves as hubs are examined by looking at the extent to which flag carriers contribute to airport hub formation I also examine the operations of selected airlines and airports and the pattern of air services through an analysis of spatial networks, establishing the degree of “hubness” of the airports examined Finally, this research uses the case study of the Australia-Europe air route (also commonly known as the Kangaroo Route) to illustrate the varying importance and significance of air hubs in Southeast Asia by drawing upon both quantitative and qualitative sources of data Key words: Airports, Air Hubs, Southeast Asia, Kangaroo Route, Spatial Analysis vi A Geographical Analysis of Air Hubs in Southeast Asia LIST OF TABLES Page 1.1 Main Commercial Passenger Aircraft 1935 – 2007 2.1 Analytical Research on Hub-and-Spoke Networks 19 2.2 Benefits and Disadvantages of Hubbing 33 2.3 Characteristics of Major Air Travel Markets 41 3.1 International Passenger Traffic for 12 months ending February 2007 48 3.2 Comparison of SIN, BKK and KUL 52 4.1 Sample Network Centrality Matrix 74 4.2 Sample Intraregional Shimbel Index 75 5.1 Regional Foci of the Three Hub Airports 92 5.2 Exclusive Destination cities for the Three Hub Airports 93 5.3 Network Centrality Matrix 93 5.4 Intraregional Shimbel Matrix 95 5.5 Interregional Shimbel Matrix 96 5.6 A Comparison of Key Statistics for the Three Airports 98 5.7 Example of Hubbing by Foreign Airlines 99 5.8a Route Intensity of Selected Destinations 99 5.8b Change in Route Intensity of Selected Destinations 101 5.9a A Comparison of the Main Hub Carriers 103 5.9b A Comparison of the Secondary Carriers at the Three Hubs 104 6.1 Distances on Key Kangaroo Route City-Pairs 116 6.2 Intermediacy Measures on the Kangaroo Route 124 6.3 International Passengers by Uplift/Discharge Country From/To Australia 125 6.4 Traffic on Board Passenger Movements between Australia and International Cities [selected cities on the Kangaroo Route] 126 6.5 Major Kangaroo Route Permutations 128 6.6a Qantas Flight Schedules on Kangaroo Route 130 6.6b BA Flight Schedules on Kangaroo Route 132 6.6c NZ Flight Schedules on Kangaroo Route 132 6.6d SIA Flight Schedules on Kangaroo Route 133 6.6e MAS Flight Schedules on Kangaroo Route 134 vii A Geographical Analysis of Air Hubs in Southeast Asia 6.6f THAI Flight Schedules on Kangaroo Route 135 6.6g Cathay Pacific Flight Schedules on Kangaroo Route 136 6.6h Emirates Flight Schedules on Kangaroo Route 137 6.7 Route Intensity (Sydney – London) 139 6.8 Weekly Maximum Seat Capacity by Airline 139 6.9a Airline Choice Factors 142 6.9b Airport Choice Factors 144 viii A Geographical Analysis of Air Hubs in Southeast Asia LIST OF FIGURES Page 1.1 The Transport System 2.1 Themes of Geographic Analysis in Air Transport 17 2.2 Hub and Spoke Networks 26 2.3 Airport Hubbing Level 27 2.4 The Nine Freedoms of Air 38 4.1 Sample Intraregional Network Map 72 5.1 Singapore Changi Airport (SIN) Intraregional Network Map 83 5.2 Kuala Lumpur (KUL) Intraregional Network Map 84 5.3 Bangkok (BKK) Intraregional Network Map 84 5.4 Intraregional Network Map of all Three Hub Airports 85 5.5 Singapore Changi Airport (SIN) Interregional Network Map 87 5.6 Kuala Lumpur KLIA (KUL) Interregional Network Map 88 5.7 Bangkok (BKK) Interregional Network Map 89 5.8 Interregional Network Map of all Three Hub Airports 91 6.1 Early Intercontinental Air Routes 115 6.2a Aircraft Range on LHR-SYD Route 117 6.2b Aircraft Range on SYD-LHR Route 117 6.3a Current Routes – Sydney to the UK 121 6.3b Current Routes – Melbourne to the UK 121 6.3c Current Routes – Perth to the UK 122 6.3d Current Routes – Brisbane to the UK 122 6.3e Current Routes – Auckland to the UK 123 6.3f Current Routes – Christchurch to the UK 123 6.4 International Passengers by Major Airlines 127 ix A Geographical Analysis of Air Hubs in Southeast Asia LIST OF REFERENCES Books Amin, A & Thrift, N (1994) (eds) Globalization, Institutions, and Regional Development in Europe Oxford: Oxford University Press Augé, M (1995) Non-Places: Introduction to an Anthropology of Supermodernity London: Verso Bailey, E.E., Graham, D.R & Kaplan, D.P (1985) Deregulating the Airlines Cambridge: MIT Press Bamford, C.G & Robinson, H (1978) Geography of Transport Plymouth: Macdonald and Evans Barlay, S (1995) Cleared for Take-Off: Behind the Scenes of Air Travel United Kingdom: Kyle Cathie Limited Black, W.R (2003) Transportation: A Geographical Analysis New York: The Guildford Press Brenner, M.A., Leet, J.O & Scholt, E (1985) Airlines Deregulation Connecticut: Eno Foundation for Transportation Burghouwt, G (2007) Airline Network Development in Europe and its Implications for Airport Planning United Kingdom: Ashgate Button, K.J (ed.) (1991) Airline Deregulation: International Experiences London: David Fulton Button, K & Stough, R (2000) Air Transport Networks: Theory and Policy Implications Massachusetts: Edward Elgar Publishing Castells, M (1996) The Rise of the Network Society Oxford: Blackwell Caves, R.E (1962) Air Transport and its Regulators: An Industry Study Cambridge: Harvard University Press Chorley, R.J & Haggett, P (1974) Network Analysis in Geography (2nd Ed.) London: Edward Arnold Cloke, P., Cook, I., Crang, P., Goodwin, M., Painter, J & Philo, C (2004) Practicing Human Geography London: Sage Publications Davis, R.E.G (1997) Airlines of Asia since 1920 United Kingdom: Putnam Aeronautical Books 158 A Geographical Analysis of Air Hubs in Southeast Asia Dempsey, P.S & Goetz, A.R (1992) Airline Deregulation and Laissez-faire Mythology Connecticut: Quorum Books Doganis, R (2002) Flying off course: The economics of international airlines New York: Routledge Doganis, R (2006) The Airline Business New York: Routledge Douglas, G.W & Miller, J.C (1974) Economic Regulation of Domestic Air Transport Washington DC: The Brookings Institution Fotheringham, A.S & O’Kelly, M.E (1989) Spatial Interaction Models: Formulation and Applications Normwel: Kluwer Fuller, G & Harley, R (2004) Aviopolis: A Book about Airports London: Black Dog Publishing Findlay, C., Chia, L.S., & Singh, K (eds.) (1997) Asia Pacific Air Transport: Challenges and Policy Reforms Singapore: Institute of Southeast Asian Studies Gordon, A (2004) Naked Airport: A Cultural History of the World’s Most Revolutionary Structure New York: Metropolitan Books Gottdiener, M (2001) Life in the Air: Surviving the New Culture of Air Travel United States of America: Rowman & Littlefield Publishers Inc Graham, B (1995) Geography and Air Transport United Kingdom: John Wiley & Sons Ltd Haggett, P (2001) Geography: A Modern Synthesis (4th Edition) Prentice Hall New York: Hall, P (1966) The World Cities London: Heinemann Hanlon, P (1999) Global Airlines: Competition in a Transnational Industry 2nd Edition Oxford: Butterworth-Heinemann Hartshone, R (1939) The Nature of Geography: A critical survey of current thought in the light of the past Lancaster: Association of American Geographers Heracleous, L., Wirtz, J & Pangarkar, N (2006) Flying High in a Competitive Industry: Cost-Effective Service Excellence at Singapore Airlines Singapore: McGraw Hill Heldman, R.K (1992) Global Telecommunications: Layered Networks’ Layered Services New York: McGraw-Hill Hutton, P (1981) Wings Over Singapore: The story of Singapore Changi Airport Singapore: Department of Civil Aviation 159 A Geographical Analysis of Air Hubs in Southeast Asia Kahn, A.E (1970) The Economics of Regulation: Principles and Institutions New York: Wiley Kishnani, N (2002) Changi by design: Architecture of the World’s Best Airport Singapore: CPG Consultants Pte Ltd Johnston, R.J., Gregory, D., Pratts, G & Watts, M (2000) The Dictionary of Human Geography (4th Ed.) Massachusetts: Blackwell Publishers Ltd Kansky, K.J (1963) Structure of Transportation Networks: Relationships Between Network Geometry and Regional Characteristics Chicago: The University of Chicago Kishnani, N (2002) Changi by design: Architecture of the World’s Best Airport Singapore: CPG Consultants Pte Ltd Morton, J.K (2001) Changi: Singapore International Airport United Kingdom: Airlife Publishing Ltd Noam, E (1992) Telecommunications in Europe Oxford: Oxford University Press Oum, T.H & Yu, C (2000) Shaping Air Transport in Asia Pacific England: Ashgate Pascoe, D (2001) Airspaces London: Reaktion Books Ltd Reed, H.C (1981) The Pre-eminence of International Financial Centers New York: Praeger Richmond, S.B (1962) Regulation and Competition in Air Transportation New York: Columbia University Press Rodrigue, J.P., Comtois, C & Slack, B (2006) The Geography of Transport Systems UK: Routledge Sassen, S (1991) The Global City New York: Princeton University Press (1994) Cities in a World Economy Pine Forge: Pine Forge Press Shearman, P (1992) Air Transport: Strategic Issues in Planning and Development London: Pitman Publishing Shy, O (2001) The Economics of Network Industries London: Cambridge University Press Song, W (2003) Air Passenger Routes in Air Hub and Spoke Networks New York: The Edwin Mellen press Taaffe, E.J., Gauthier, H.L & O’Kelly, M.E (1996) Geography of Transportation New Jersey: Prentice Hall 160 A Geographical Analysis of Air Hubs in Southeast Asia Wells, A.T (1999) Air Transportation: A Management Perspective Belmont: Wadsworth Publishing Wells, A.T & Young, S.B (2004) Airport Planning & Management (5th Edition) New York: McGraw-Hill Wheatcroft, S.F (1964) Air Transport Policy London: Michael Joseph Williams, A (2006) Developing Strategies for the Modern International Airport: East Asia and beyond Aldershot: Ashgate Williams, G (1993) The Airline Industry and the Impact of Deregulation Aldershot: Ashgate Wood, C.H & Keller, C.P (eds) (1996) Cartographic Design: Theoretical and practical perspectives New York: John Wiley & Sons Chapters in Books Berechman, J and Shy, O (1998) “The Structure of Airline Equilibrium Networks’’ in J.C.J.M van der Bergh, Nijkamp, P and Rietveld, P (eds.) Recent Advances in Spatial Equilibrium Modelling Berlin: Springer Button, K (2004) “Economic development and transport hubs” in Button, K., Hensher, D.A., Haynes, K.E & Stopher, P.R (eds.) Handbook of Transport Geography and Spatial Systems Amsterdam: Elsevier Pp 77 – 95 Chin, A & Tongzon, J (1998) “Maintaining Singapore as a major shipping and air transport hub” in Toh, M.H & Tan, K.Y (eds) Competitiveness of the Singapore Economy: A Strategic Perspective Singapore: Singapore University Press pp 83 – 114 Chin, A.T.H (2001) “Developments in the air transport industry: implications for Singapore tourism” in Tan, E.S., Yeoh, B.S.A & Wang, J (eds) Tourism Managements and Policy: Perspectives from Singapore Singapore: World Scientific Publishing Co Pte Ltd pp 93 – 129 Hanson, S (2003) “Transportation: hooked on speed, eyeing sustainability.” in Sheppard, E & Barnes, T (eds) A Companion to Economic Geography USA: Blackwell Publishing Keeler, T.E (1991) “Airline deregulation and market performance: the economic basis for regulatory reform and lessons from the US experience” in Banister, D & Button, K.J (eds) Transport in a Free Market Economy London: Macmillan pp 121 – 170 Keeling, D.F (1995) “Transport and the world city paradigm” in Knox, P.L & Taylor, P.J (eds) World Cities in a World-System United Kingdom: Cambridge University Press pp 115 – 131 161 A Geographical Analysis of Air Hubs in Southeast Asia Kissling, C.C (1989) “ASEAN Air Transport” in Leinback, T.R & Chia, L.S (eds) South-East Asian Transport: Issues in Development New York: Oxford University Press Knox, P (1995) “World Cities in a World System” in Knox, P & Taylor, P (eds) World Cities in a World System Cambridge: Cambridge University Press Leinbach, T.R and Bowen J.T (2004) “Airspaces: Air Transport, Technology and Society” in Brunn, D.B., Cutter, S.L and Harrington, J.W (eds) Geography and Technology The Netherlands: Kluwer Rimmer, P (1998) “Transport and communications among world cities” in Lo, F.C & Yeung, Y.M (eds) Globalization of the world of large cities Tokyo: United Nations University Press pp 433 – 470 Sirim, N., Lew, A.A & Raguraman, K (2001) “Gateways, hubs and destinations: transportation hierarchies in Southeast Asia” in Tan, E.S., Yeoh, B.S.A & Wang, J (eds) Tourism Managements and Policy: Perspectives from Singapore Singapore: World Scientific Publishing Co Pte Ltd pp 55 – 89 Journal Articles Aaltola, M (2005) “The International Airport: The hub-and-spoke pedagogy of the American Empire” in Global Networks, 5(3), pp 261 – 278 Adler, N (2001) “Competition in a deregulated air transportation market” in European Journal of Operational Research, 129, pp 337 – 345 Albers, S., Koch, B & Ruff, C (2005) “Strategic alliances between airlines and airports – theoretical assessment and practical evidence” in Journal of Air Transport Management, 11, pp 49 – 58 Alderighi, M., Cento, A., Nijkamp, P & Rietveld, P (2005) “Network competition – the coexistence of hub-and-spoke and point-to-point systems” in Journal of Air Transport Management, 11, pp 328 – 334 Bates, J (2002) “All set for take-off” in Airport World: the magazine of the Airports Council International, 7(4) Berechman, J., Poddar, S and Shy, O (1994) “Network Structure and Entry in the Deregulated Airline Industry’’ CORE Discussion paper #9464, Catholic University of Louvain Bittlingmayer, G (1990) ``Efficiency and Entry in a Simple Airline Network’’ in International Journal of Industrial Organization, 8, pp 245 - 257 Boswell, G (1997) “Non-places and the enfeeblement of rhetoric in supermodernity” in Enculturation, 1(1) 162 A Geographical Analysis of Air Hubs in Southeast Asia Bowen, J (2000) “Airline hubs in Southeast Asia: national economic development and nodal accessibility” in Journal of Transport Geography, 8, pp 25 – 41 Brueckner, J K and Spiller, P.T (1991) “Competition and Mergers in Airline Networks’’ in International Journal of Industrial Organization, 9, pp 323 - 342 Bryan, D.L & O’Kelly, M.E (1999) “Hub-and-spoke networks in air transportation: An analytical review” in Journal of Regional Science, 39(2), pp 275 – 295 Burghouwt, G., Hakfoort, J & Van Eck, J.R (2003) “The spatial configuration of airline networks in Europe” in Journal of Air Transport Management, 9, pp 309 – 323 Button, K.J & Lall, S (1999) “The economics of being an airline hub city” in Research in Transport Economics, 5, pp 75 – 106 Button, K (2002) “Debunking some common myths about airport hubs” in Journal of Air Transport Management, 8, pp 177 – 188 Chin, A.T.H (1997) “Implications of liberalization on airport development and strategy in the Asia Pacific” in Journal of Air Transport Management, 3(3), pp 125 – 131 Chin, A., Hooper, P & Oum, T.H (1999) “The impacts of the Asian Economic Crises on Asian Airlines: short-run responses and long-run effects” in Journal of Air Transport Management, 5, pp 87 – 96 Choi, J.H., Barnett, G.A & Chon, B.S (2006) “Comparing world city networks: a network analysis of Internet backbone and air transport intercity linkages” in Global Networks, 6(1), pp 81 – 99 Chou, Y.-H (1990) “The hierarchical-hub model for airline networks” in Transportation Planning and Technology, 14, pp 243 – 258 Debbage, K.G (1994) “The international airline industry: globalization, regulation and strategic alliances” in Journal of Transport Geography, 2(3), pp 190 – 203 Dennis, N (1994) “Airline hub operations in Europe” in Journal of Transport Geography, 2(4), pp 219 – 233 Derudder, B & Witlox, F (2005) “An appraisal of the use of airline data in assessing the world city network: a research note on data” in Urban Studies, 42(13), pp 2371 – 2388 Derudder, B., Devriendt, L & Witlox, F (2005a) “Flying Where You Don’t Want to Go: An Empirical Analysis of Hubs in the Global Airline Network” in GaWC Research Bulletin (187), http://www.lboro.ac.uk/gawc/rb/rb187.html 163 A Geographical Analysis of Air Hubs in Southeast Asia Derudder, B., Witlox, F & Taylor, P.J (2005b) “United States cities in the world city network: comparing their positions using global origins and destinations of airline passengers” in GaWC Research Bulletin (173) http://www.lboro.ac.uk/gawc/rb/rb173.html Elek et al (1999) “‘Open skies’ or open clubs? New issues for Asia Pacific Economic Coorporation” in Journal of Air Transport Management, 5, pp 143 – 151 Feldhoff, T (2002) “Japan’s regional airports: conflicting national, regional and local interests” in Journal of Transport Geography, 19, pp 165 – 175 Fleming, D.K & Hayuth, Y (1994) “Spatial characteristics of transportation hubs: centrality and intermediacy” in Journal of Transport Geography, 2(1), pp – 18 Francis, G., Humphreys, I & Fry, J (2002) “The benchmarking of airport performance” in Journal of Air Transport Management, 8, pp 239 – 247 Francis, G et al (2006) “Where next for low cost airlines? A spatial and temporal comparative study” in Journal of Transport Geography, 14, pp 83 – 94 Gillen, D & Lall, A (2004) “Competitive advantage of low-cost carriers: some implications for airports” in Journal of Air Transport Management, 10, pp 41 – 50 Gillen, D & Morrison, W.G (2005) “Regulation, competition and network evolution in aviation” in Journal of Air Transport Management, 11, pp 161 – 174 Goetz, A.R & Rodrigue, J (1999) “Transport terminals: new perspectives” in Journal of Transport Geography, 7, pp 237 – 240 Goetz, A.R (2006) “Transport Geography: Reflecting on a subdiscipline and identifying future research trajectories The insularity issue in Transport Geography” in Journal of Transport Geography, 14, pp 230 – 231 Graham, B (1999) “Airport-specific traffic forecasts: a critical perspective” in Journal of Transport Geography, 7, pp 285 – 289 Guimerà, R., Mossa, S., Turtschi, A & Amaral, L.A.N (2005) “From the Cover: The worldwide air transportation network: Anomalous centrality, community structure, and cities’ global roles” in Proceedings of the National Academy of Sciences of the United States of America (PNAS), 102(22), pp 7794 – 7799 Hansen, M (1990) “Airline competition in a hub-dominated environment: an application of non-cooperative game theory” in Transportation Research B, 24, pp 27 – 43 Hendricks, K., Piccione, M and Tan, G (1995) “The Economics of Hubs: The Case of Monopoly’’ in Review of Economic Studies, 62, pp 83 - 99 Hendricks, K., Piccione, M and Tan, G (1997) “Entry and Exit in Hub-Spoke Networks’’ in Rand Journal of Economics, 28, pp 291 - 303 164 A Geographical Analysis of Air Hubs in Southeast Asia Hensher, D.A & Duangphastra, C (2000) “Interorganizational support and strategies for the ASEAN aviation sector: an application of canonical correlation analysis” in Journal of Air Transport Management, 6, pp 119 – 132 Hooper, P (2005) “The environment for Southeast Asia’s new and evolving airlines” in Journal of Air Transport Management, 11, pp 335 – 347 Horner, M.W & O’Kelly, M.E (2001) “Embedding economies of scale concepts for hub network design” in Journal of Transport Geography, 9, pp 255 – 265 Humphreys, I & Francis, G (2002) “Policy issues and planning of UK regional airports” in Journal of Transport Geography, 10, pp 249 – 258 Iatrou, K & Alamdari, F (2005) “The empirical analysis of the impact of alliances on airline operations” in Journal of Air Transport Management, 11, pp 127 – 134 Kahn, A.E (1988) “Surprises of airline deregulation” in American Economic Review, 78(2), pp 316 – 322 Kanafani, A & Ghobrial, A.A (1985) “Airline hubbing: Some implications for airport economics” in Transportation Research Part A – Policy and Practice, 19(1), pp 15 – 27 Keeler, T.E (1972) “Airline regulation and market performance” in Bell Journal of Economics, 3, pp 399 – 424 Keeling, D.J (2007) “Transportation geography: new directions on well-worn trails” in Progress in Human Geography, 32(2), pp 217 – 225 Knowles, R.D (2006) “Transport shaping space: differential collapse in time-space” in Journal of Transport Geography, forthcoming article Lawton, T.C & Solomko, S (2005) “When being the lowest cost is not enough: Building a successful low-fare airline business model in Asia” in Journal of Air Transport Management, 11, pp 355 – 362 Lee, H & Yang, H.M (2003) “Strategies for global logistics and economic hub: Incheon International Airport” in Journal of Air Transport Management, 9, pp 113 – 121 Levine, M.E (1965) “Is regulation necessary?” California air transportation and national regulatory policy” in Yale Law Journal, 74(8), pp 1416 – 1447 Levine, M.E (1987) “Airline competition in deregulated markets; theory, firm strategy and public policy” in Yale Journal on Regulation, 4, pp 393 – 494 Li, M.Z.F (1998) “Air transport in ASEAN: recent developments and implications” in Journal of Air Transport Management, 4, pp 135 – 144 165 A Geographical Analysis of Air Hubs in Southeast Asia Likert, R (1932) "A Technique for the Measurement of Attitudes" Archives of Psychology, 140, pp 1-55 Lim, H.S (1986) “The expansion of Singapore Changi Airport” in Singapore Transport, May 1986, 5-7 Lindsay, G (2006) “Rise of the Aerotropolis” in Fast Company, 76(107) (available at www.fastcompany.com) Nero, G (1996) “A Structural Model of intra European Union Duopoly Airline Competition’’ in Journal of Transport Economics and Policy, 30, pp 137 - 155 Nero, G and Black, J.A (1998) “Hub-and-Spoke Networks and the Inclusion of Environment Costs on Airport Pricing’’ in Transportation Research - D, 3, pp 275 296 O’Connell, J.F & Williams, G (2005) “Passengers’ perceptions of low cost airlines and full service carriers: a case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines” in Journal of Air Transport Management, 11, pp 259 – 272 O’Connor, K & Scott, A (1992) “Airline services and metropolitan areas in the Asia Pacific region 1970 – 1990” in Review of Urban and Regional Development Studies, 4, pp 240 – 253 O’Connor, K (1995) “Airport development in Southeast Asia” in Journal of Transport Geography, 3(4), pp 269 – 279 O’Connor, K (2003) “Global air travel: toward concentration or dispersal?” in Journal of Transport Geography, 11, pp 83 – 92 O’Kelly, M.E (1986) “The location of interacting hub facilities” in Transportation Science, 20(2), pp 92 – 107 O’Kelly, M.E (1992) “A clustering approach to the planar hub location problem” in Annals of Operations Research, 40, pp 339 – 353 O’Kelly, M.E & Miller, H.J (1994) “The hub network design problem: a review and synthesis” in Journal of Transport Geography, 2(1), pp 31 – 40 O’Kelly, M.E (1998) “A geographer’s analysis of hub-and-spoke networks” in Journal of Transport Geography, 6(3), pp 171 – 186 O’Kelly, M.E & Bryan, D.L (1998) “Hub location with flow economies of scale” in Transportation Research B, 32(8), pp 605 – 616 Odoni, A.R & Neufville, R (1992) “Passenger terminal design” in Transportation Research Part A, Policy and practice, 26A(1), pp 27 – 35 166 A Geographical Analysis of Air Hubs in Southeast Asia Olds, K (1995) “Globalization and the production of new urban spaces: Pacific Rim megaprojects in the late 20th century” in Environment and Planning A, 27(11), pp 1713 – 1743 Oum, T H., Zhang, A and Zhang, Y (1995) “Airline Network Rivalry’’ in Canadian Journal of Economics, 28, pp 836 - 857 Park, J.H (1997) “The EOEect of Airline Alliances on Markets and Economic Welfare’’ in Transportation Research - E, 33, pp 181 - 195 Park, Y (2003) “An analysis of the competitive strength of Asian major airports” in Journal of Air Transport Management, 9, pp 353 – 360 Pels, E., Nijkamp, P., and Rietveld, P (1999) “An Analysis of Optimal Airline Networks using Linear Marginal Cost Functions’’ Unpublished paper, Free University of Amsterdam Phang, S.Y (2003) “Strategic development of airport and rail infrastructure: the case of Singapore” in Transport Policy, 10(1), pp 27 – 33 Raguraman, K (1986) “Capacity and route regulation in international scheduled air transportation: A case study of Singapore” in Singapore Journal of Tropical Geography, 7(1), pp 53 – 67 Raguraman, K (1997) “Airlines as instruments for nation building and national identity: case study of Malaysia and Singapore” in Journal of Transport Geography, 5(4), pp 239 – 256 Raguraman, K (1997a) “Estimating the net economic impact of air services” in Annals of Tourism Research, 24(3), pp 658 – 674 Rimmer, P.J (1994) “Regional economic integration in Pacific Asia” in Environment and Planning A, 26, pp 1731 – 1759 Rimmer, P.J (2000) “Effects of the Asian crisis on the geography of Southeast Asia’s air traffic” in Journal of Transport Geography, 8, pp 83 – 97 Rodrigue, J (1999) “Globalization and the synchronization of transport terminals” in Journal of Transport Geography, 7, pp 255 – 261 Schipper, Y., Nijkamp, P and Rietveld, P (1998a) “Frequency Equilibria in Duopoly Airline Markets’’ in Discussion paper #98-080/3, Tinbergen Institute, Free University of Amsterdam Schipper, Y., Nijkamp, P., and Rietveld, P (1998b) “Deregulation and Schedule Competition in Simple Airline Networks’’ Unpublished paper, Free University of Amsterdam Shaw, S.-L (1993) “Hub structures of major US passenger airlines” in Journal of Transport Geography, 1, pp 47 – 58 167 A Geographical Analysis of Air Hubs in Southeast Asia Smith, D.A & Timberlake, M.F (2001) “World City Networks and Hierarchies, 1977 – 1997: An Empirical Analysis of Global Air Travel Links” in American Behavioral Scientist, 44(10), pp 1656 – 1678 Spiller, P T (1989) “Pricing of Hub-and-Spoke Networks’’ in Economics Letters, 30, 165 - 169 Taafe, E.J & Gauthier, H.L (1994) “Transportation geography and geographic thought in the United States: an overview” in Journal of Transport Geography, 2(3), pp 155 – 168 Tretheway, M.W (2004) “Distortions of Airline Revenues: Why the Network Airline Business Model is Broken” in Journal of Air Transport Management, 3(14) Veldhuis, J (1997) “The competitive position of airline networks” in Journal of Air Transport Management, 3(4), pp 181 – 188 Vowles, T.M (2000) “The geographic effects of US airline alliances” in Journal of Transport Geography, 8, pp 277 – 285 Vowles, T.M (2006) “Geographic Perspectives of Air Transportation” in The Professional Geographer, 58(1), pp 12 – 19 Vowles, T.M (2006a) “Airfare pricing determinants in hub-to-hub markets” in Journal of Transport Geography, 14, pp 15 – 22 Ullman, E (1953) “Human geography and area research” in Annals of the Association of American Geographers, 79, pp 88 – 100 Weber, M & Williams, G (2001) “Drivers of long-haul air transport route development” in Journal of Transport Geography, 9, pp 243 – 254 White, L.J (1979) “Economies of scale and the question of natural monopoly in the airline industry” in Journal of Air Law and Commerce, 44(3), pp 545 – 573 Wood (2003) “A Rhetoric of Ubiquity: Terminal Space as Omnitopia” in Communication Theory, 13(3), pp 324 – 344 Yeoh, B.S.A (2005) “The global cultural city? Spatial Imagineering and politics in the (multi)cultural marketplaces of South-east Asia” in Urban Studies, 42(5/6), pp 945 – 958 Zhang, A and Wei, X (1993) “Competition in Airline Networks: The Case of Constant Elasticity Demands’’ in Economics Letters, 42, pp 253 - 259 Zhang, A (2003) “Analysis of an international air-cargo hub: the case of Hong Kong” in Journal of Air Transport Management, 9, pp, 123 – 138 168 A Geographical Analysis of Air Hubs in Southeast Asia Zook, M.A & Brunn, S.D (2006) “From Podes to Antipodes: Positionalities and Global Airline Geographies” in Annals of the Association of American Geographers, 96(3), pp 471 – 490 Unpublished Sources Chew, B.N.S (1998) Opening Up the Skies: Asia-Pacific Multilateral Liberalisation Singapore: Department of Geography, National University of Singapore (Unpublished academic exercise) Choo, W.K., Huang, Z & Wang, Y (2005) Changi Airport as a Symbol of Modernization, Development and Nationhood for Singapore Singapore: National University of Singapore (Unpublished academic exercise) Goh, B.M.L (1989) ASEAN Airlines: Competition and Cooperation Singapore: Department of Geography, National University of Singapore (Unpublished academic exercise) Gonzales, M.S.C (1995) Regional Analysis of the Asia Pacific Air Network Singapore: Department of Civil Engineering, National University of Singapore (Unpublished academic exercise) Khoo, G.S.C (1997) Rivalry in Airport Development in Southeast Asia Singapore: Department of Economics and Statistics, National University of Singapore (Unpublished academic exercise) Lim, V.C.H (1989) Changi: Air Transport Hub of Asean Singapore: Department of Geography, National University of Singapore (Unpublished academic exercise) McShan, W.S (1986) An Economic Analysis of Hub-and-Spoke Routing Strategy in the Airline Industry U.S.A.: Northwestern University (Unpublished academic exercise) Ng, E.K (2001) World Classism as a Policy Narrative: A Case Study of the Public Transport System in Singapore Singapore: Department of Geography, National University of Singapore (Unpublished academic exercise) Teo, J.A.X (2004) From Functional to Experiential Space: The Changi Experience Singapore: Department of Geography, National University of Singapore (Unpublished academic exercise) Wong, S.J (1999) The Competitive Position of Singapore Changi Airport and its implications for the Singapore Economy Singapore: National University of Singapore (Unpublished academic exercise) 169 A Geographical Analysis of Air Hubs in Southeast Asia Zou, L (2002) Implication of Hub and Spoke Network on Airline Strategy Analysis Singapore: Department of Economics, National University of Singapore (Unpublished academic exercise) News Articles Asian Economic News “Passengers at Kuala Lumpur airport up despite fewer airlines” 6th August 2001 Channelnews Asia “Australians rate Qantas worst airline: survey” 29th May 2007 New Zealand Herald “UK, Australia dump flight restraints” 8th July 2006 South China Morning Post “Kangaroo Route extended” 16th April 2004 The Australian “Kangaroo Route set to lock in more UK flights” 7th July 2006 The Business Times “S’pore airhub status faces challenge” 9th November 2006 The Business Times “Time to rethink CAAS privatization” 26th March 2007 The Straits Times “SIA urged to hive off some units” 30th December 2005 The Straits Times “What next, for Changi Airport to stay ahead?” 20 February 2007 The Straits Times “Mid-East carriers hop on to Kangaroo Route” 20th March 2007 Today “Battle of the Airtropolises takes off” 2nd October 2006 Today “Passport for lucrative KL-S'pore air route may be stamped this year” 9th February 2007 Today “Changi gets a wake-up call” 14th march 2007 Today “Changi must learn to excite” 20th March 2007 Travek Trade Gazette Asia “The battle for premier hub status” 24th March 2006 Others Airline timetables from various airline websites Baseler, R (2003) “Market Outlook for Air Travel: A Global Perspective”, 2nd Annual MIT Airline Industry - Washington DC Conference Cheong, C.K (2003) “Managing a Global Airline in Singapore – An SIA Outlook Talk by Cheong Choong Kong, Former Deputy Chairman and CEO, Singapore Airlines, 15th July 2003” 170 A Geographical Analysis of Air Hubs in Southeast Asia Bureau of Transport and Regional Economics (BTRE) (2006) Aviation Statistics: International Scheduled Air Transport 2005-06 Canberra: Australian Government, Department of Transport and Regional Services, Bureau of Transport and Regional Economics Federal Aviation Administration (FAA) (2000) Airport Statistics of Certified Air Carriers : Summary Tables 2000 International Air Transport Association (IATA) (2004) World Air Transport Statistics Montreal: IATA International Civil Aviation Organisation (ICAO) (1999) The World of Civil Aviation 1997 – 2000 Montreal: ICAO Johnston, R.J (2000) “Questionnaire” Entry in Johnston, R.J., Gregory, D., Pratt, G & Watts, M (eds) The Dictionary of Human Geography (4th Edition) Oxford: Blackwell Publishers Ltd K.L International Airport Berhard (1998) The Making of KLIA (KL International Airport) Malaysia: K.L International Airport Barhard Lee, K.Y (2006) “Speech by Mr Lee Kuan Yew, Minister Mentor, at Changi Airport 25th Anniversary Dinner, July 2006, 8.00pm at the Raffles Ballroom, Swissotel The Stamford” Lim, R (2007) “Speech by Mr Raymond Lim, Minister for Transport and Second Minister for Foreign Affairs, at Air Transport during the Committee of Supply Debate, March 2007, 4.30pm at Parliament” Matsumoto, H (2005) “International air network structures, hub-ness of world cities and effects of new airports” in Proceedings of the 9th Air Transport Research Society World Conference – July 2005, Rio de Janeiro, Brazil Malaysia Airports (1993) Airports of Malaysia: Expanding Horizons Malaysia: Malaysia Airports BHD Pacific Asia Transport Association (PATA) (2000) The Development and Future of Aviation Hubs in Asia Bangkok: PATA Websites Airline Route Maps, Who Flies Where (2007) http://www.flightmapping.com/maps (accessed on 1st April 2007) Airports Council International (ACI) (2006) th http://www.airports.org (accessed on 15 March 2006) Airport Statistics 171 A Geographical Analysis of Air Hubs in Southeast Asia Air Transport Association (ATA) (2006) ATA Website http://www.airlines.org/home (accessed on 15th March 2006) Civil Aviation Authority of Singapore (CAAS) (2005) Singapore Changi Airport Website www.changiairport.com.sg (accessed on 1st October 2005) Great Circle Mapper (2007) http://gc.kls2.com (accessed on 1st June 2007) International Civil Aviation Organisation (ICAO) http://www.icao.int (accessed on 15th March 2007) (2006) ICAO Website Kuala Lumpur International Airport (2006) http://www.klia.com.my (accessed on 15th June 2007) Official Airlines Guide (OAG) Website (2007) http://www.oag.com (accessed on 15th June 2007) Rodrigue, J (2005) Transport Geography on http://people.hofstra.edu/geotrans/ (accessed on 15th June 2007) the Web Singapore Tourism Board (2007) www.stb.gov.sg (accessed on 26th April 2007) Skytrax Airline and Airport Opinions (2007) www.airlinequality.com (accessed on 26th April 2007) Suvarnabhumi Airport (2006) http://www.bangkokairportonline.com (accessed on 15th June 2007) Interviews Interview with Mr Gerald Ng, Air Transport Manager, Air Transport Division, Civil Aviation Authority of Singapore (CAAS) on 6th March 2007 at 1015hrs at CAAS Office 172 ... quantitative and qualitative sources of data Key words: Airports, Air Hubs, Southeast Asia, Kangaroo Route, Spatial Analysis vi A Geographical Analysis of Air Hubs in Southeast Asia LIST OF TABLES Page... major and arguably most important hub airports in Southeast Asia - Singapore Changi Airport, Kuala Lumpur International Airport, and Bangkok A Geographical Analysis of Air Hubs in Southeast Asia. .. trends to have impacted air transport today 33 A Geographical Analysis of Air Hubs in Southeast Asia A vast array of early works is available in the literature, predominantly in the 1960s and 1970s