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Hub and Feeder Strategy

The hub and feeder strategy is a network design where smaller routes feed passengers into a central hub airport, allowing airlines to consolidate demand and operate larger, more efficient routes.

This is a powerful strategy for expanding your airline and improving aircraft utilisation.

What Is a Hub

A hub is a central airport where multiple routes connect. Passengers travel:

  • From smaller cities to the hub
  • Then from the hub to major destinations

This allows demand from multiple smaller markets to combine.

What Are Feeder Routes

Feeder routes connect smaller airports to your hub.

These routes:

  • Use smaller aircraft
  • Operate higher frequency
  • Feed passengers into larger routes

Feeder routes may not always be highly profitable alone, but they strengthen hub routes.

Benefits of Hub Strategy

Advantages include:

  • Higher load factors on main routes
  • Better aircraft utilisation
  • Stronger market presence
  • Easier expansion
  • Improved passenger connectivity

A strong hub allows you to operate larger aircraft efficiently.

Choosing a Hub Airport

Good hub airports typically have:

  • High population
  • Good geographic location
  • Strong demand
  • Limited competition
  • Available expansion opportunities

Central geographic position often works best.

Building a Hub

Typical steps:

  1. Choose a central airport
  2. Add short-haul feeder routes
  3. Add medium-haul routes
  4. Increase frequency
  5. Introduce larger aircraft
  6. Expand long-haul routes

Growth should be gradual.

Hub vs Point-to-Point

Point-to-point strategy:

  • Direct routes between cities
  • Simple network
  • Easier to manage

Hub strategy:

  • Centralised network
  • More complex
  • Greater long-term potential

Both strategies can work depending on airline size.

Strategy Tips

  • Start with one strong hub
  • Add feeders gradually
  • Monitor route performance
  • Avoid too many hubs early
  • Increase frequency at the hub first

When to Use Hub Strategy

Best used when:

  • You have multiple aircraft
  • You want to expand long-haul routes
  • Demand is spread across regions
  • You want to consolidate traffic

See Also