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.
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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 do 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
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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
1.1 Preamble 1
1.2 Air Hubs and Geography 3
1.3 Aims, Objectives and Scope 8
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
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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
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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
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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
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A Geographical Analysis of Air Hubs in Southeast Asia
LIST OF TABLES
Page
1.1 Main Commercial Passenger Aircraft 1935 – 2007 7
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 126
Cities [selected cities on the Kangaroo Route]
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
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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
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A Geographical Analysis of Air Hubs in Southeast Asia
LIST OF FIGURES
Page
1.1 The Transport System 5
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
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A Geographical Analysis of Air Hubs in Southeast Asia
LIST OF PLATES
Page
2.1 Four Basic Principles of International Aviation Regulation 37
2.2 Freedoms of Air 39
4.1 Map Showing Selected Transit Airports for Online Questionnaire Survey 78
4.2 Sample Itineraries for Questionnaire Survey 79
6.1 QF and BA Codesharing Options on Kangaroo Route 131
6.2 Itinerary choice for Questionnaire Survey 146
x
CHAPTER ONE
INTRODUCTION AND BACKGROUND
A Geographical Analysis of Air Hubs in Southeast Asia
CHAPTER ONE: INTRODUCTION AND BACKGROUND
1.1 Preamble
Civil aviation and air transport has transcended its original role as a facilitating
medium for the carriage of goods and passengers over a sparse network of domestic
and international linkages and evolved into an indispensable tool of mass transport in
the world today. It has radically impacted our lives, and is perhaps one of the primary
avenues by which forces of globalization are manifested today. Overcoming the
friction of distance, and providing added convenience and time savings over other
forms of transport, air transport is arguably the only form of transport that is three-
dimensional (Bamford & Robinson, 1978: 42) since aircraft are not tied to the surface
and have the ability to fly over terrestrial obstacles which have been important
dividers of societies over space and time.
Stephen Wheatcroft, an eminent air transport scholar commented in the
beginning of his 1964 book Air Transport Policy that hardly a day went by without
any new developments in air transport and that he faced problems keeping up with a
constant flow of new material. Back then, some of the issues he was concerned with,
amongst others, were the reasons why governments needed to control entry to routes,
airline capacity management strategies, and the economic impact of bigger and faster
aircraft (cited in Hanlon, 1996: v). More than four decades later, new developments in
air transport are still constantly appearing, albeit at a much faster rate. Many of the
issues highlighted by Wheatcroft in 1964 are still pertinent today, some with different
foci, in particular, the contemporary trend towards deregulating the industry and how
state interests coincide or come into conflict with industry trends.
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A Geographical Analysis of Air Hubs in Southeast Asia
In 2005, aviation transported two billion passengers annually, with 40% of all
tourists using air transport (ATAG, 2005). The air transport industry generated a total
of 29 million jobs globally (through direct, indirect, and induced impacts), and
aviation’s global economic impact is estimated at US$2,960 billion, equivalent to 8%
of world Gross Domestic Product (GDP) (ATAG, 2005). The world’s 900 airlines
have a total fleet of nearly 22,000 aircraft (ICAO, 2006). They serve some 1,670
airports through a route network of several million kilometres (ACI, 2005).
As one of the fastest growing economic regions of the world, Asia is a hotbed
for aviation activity. The region has recovered from the financial and economic
turmoil of the 1997 crisis and is now on an accelerating path to development with
trade being the key driver. The densely populated region of Southeast Asia (over 500
million inhabitants) in particular has seen tremendous growth in the aviation sector
over the past decade and remains one of the fastest growing aviation regions in the
world today. However, it is not unique from any other aviation region in the world
insofar as regulation of air services is concerned. In many instances, the state (as I
shall show) plays a pertinent and central role both regulating and promoting the air
transport industry.
Forty years on from Wheatcroft, at a meeting with senior management and
union officials of Singapore Airlines (SIA) in December 2005, Singapore’s Minister
Mentor Lee Kuan Yew highlighted the challenges facing the national carrier SIA and
Changi Airport in light of rapid and new developments in the civil aviation industry.
In particular, given the uncertain outlook in the wake of skyrocketing fuel prices, he
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A Geographical Analysis of Air Hubs in Southeast Asia
stressed the Singapore government’s priority in safeguarding Changi Airport’s status
as an air hub, even if this was to come at the expense of SIA.
“As long as we remain a hub, whichever airline succeeds or fails, Singaporeans will
benefit and jobs increase”
(Lee Kuan Yew, 2005, cited in The Straits Times, 30
th
December 2005)
Lee’s statement in itself was symptomatic of global and regional
developments of air transport in the past decade which have brought about profound
changes not only in the way governments structure their aviation policies, but on
business decisions relating to airline and airport management, and also on how
scholars and researchers study and approach air transport as a discipline – not unlike
what Wheatcroft was interested in 40 years ago. It is within such a context that this
thesis was conceptualized and developed, framed around the academic confines of
aviation studies, and in the wider sub-discipline of transport geography in general. In
particular, the formation and development of air transport hubs in Southeast Asia
forms the focus of this thesis. A personal interest arose out of Lee’s statement as I
wanted to understand the whole notion of a “hub”, and why in Singapore’s case it was
deemed even more important than the national carrier. The following section draws
linkages between air hubs and the discipline of Geography as I explain why a
phenomenon that seemingly stems from an operating business model warrants a
geographical perspective.
1.2 Air Hubs and Geography
Geography as an academic discipline, loosely defined, refers to the study of
patterns and processes over space. Transport, thus, provides an avenue for interaction
to take place over space, connecting distant places and facilitating movement between
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A Geographical Analysis of Air Hubs in Southeast Asia
them. Transport provides a fundamental foundation for the building blocks of
societies – labour, capital, territory – and intersects with the human and physical
environment in ways that have profound geographical consequences (Keeling, 2007).
As a subset of economic geography, transport geography was initially
concerned with the location of economic activities and the monetary costs of distance.
Over time, it was recognized that transport geography deserved to be a sub-discipline
in its own right for it is characterized by a defining set of axioms which dictate the
way transport geographers go about their work. Haggett (2001) described the core
elements of transport geography by its systematic nature in studying transport nodes,
networks and demand (see Fig 1.1). In transport geography, geographers focus on the
spatial organizations and patterns created by (and for the purposes of) movement of
people and goods over space. Transport studies also examine the concepts of
movement, flow and activity patterns. Transport nodes like airport terminals also
occupy an important place in space and constitute the basis of a complex spatial
system. These ideas are integral to the field of geography as they provide some
measure of “spatial interaction” and “areal association” both between and within
places (Ullman, 1954). Although the field of transport studies has traditionally been
dominated by economists and engineers, the multidisciplinary nature of the field
provides geographers opportunities to contribute through spatial analysis at different
scales. No other discipline places emphasis on interactions between the local and the
global, and deals with complex issues such as safety, aesthetics, working conditions,
gender, deprivation, the environment, governance and heritage within a single
framework.
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A Geographical Analysis of Air Hubs in Southeast Asia
Figure: 1.1: The Transport System (source: Rodrigue, J. (2005))
Given the broad overview of transport geography, let us now focus on one of
the core modes of transport geography which forms the backbone of this thesis. Of all
the different modes of transport known to man, air transport is arguably one of the
most impactful and revolutionary. Together with shipping, air transport is one of the
truly global forms of transport. From being a service initially targeted at the delivery
of small quantities of high value items (postal mail) and a link between colonies, air
transport has become the main mode of transport for people as they transverse the
world today. Air transport has played a key role in the globalization of the world by
breaking down the barrier of distance and allowing fast and efficient transport
between any two points on the globe, providing impetus for the development of
numerous service industries such as banking and tourism.
The notion of a “shrinking world” can largely be attributed to the advent of air
transport. At the same time, the air transport system is also one that encompasses
interrelationships among various economic, political, technological and socio-cultural
elements and thus presents itself as an arena where the geographer could contribute
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A Geographical Analysis of Air Hubs in Southeast Asia
through the synthesis of diverse and complex linkages eminent in this highly dynamic
system (Ong, 1995). This is especially pertinent in the era of globalization where
flows and linkages between places dominate the focuses of many geographers.
However, what we often fail to acknowledge is that air transport is a key mode used
by these “flows and linkages” which include on the basic level the movement of
people and goods/cargo, but also that of ideas, cultures and identities. The very notion
of “connectedness” as denoted by air links between cities in the world remains a key
tenet in the global economy. For “global cities” such as London and New York, “the
international airport is both a vortex drawing together people, goods, information, and
money from across the world and a window though which the global reach of such
cities extend” (Leinbach & Bowen, 2004: 298).
The central component of air transport (apart from the aircraft) is the airport.
This is the interaction point for passengers, cargo and the aircraft. Airports dictate
where aircraft land and where passengers and cargo go to. In the global airport
network, there are complex orders and hierarchies which manifest into the dominance
of huge nodes we come to know as “hubs” or mega-airports where there is the
confluence of a large number of carriers, passengers and cargo.
The air transport industry is extremely sensitive to technological developments
in aerospace, especially in terms of capacity or range increase in aircraft which allow
airlines to expand or extend their markets. Today, the forerunners in innovation in
terms of aircraft development are the Airbus A380
1
and the Boeing 777-200LR
2
in
terms of capacity and range respectively. Such technologies enable the never-before-
1
The Airbus A380 has a maximum capacity of 555 (3-class seating) or 840 (1-class seating).
2
The Boeing 777-200LR has a maximum range of 17,446km.
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A Geographical Analysis of Air Hubs in Southeast Asia
seen scale in terms of passenger movement between two cities, and give us the ability
to connect virtually almost
3
any city-pair in the world today via a single non-stop
flight.
Aircraft
Year of First
Commercial Service
Speed
(km/hr)
Maximum Range at
Full Payload (km)
Seating Capacity
Douglas DC-3 1935 346 563 30
Douglas DC-7 1953 555 5,810 52
Boeing 707-100 1958 897 6,820 110
Boeing 727-100 1963 917 5,000 94
Boeing 747-100 1970 907 9,045 385
McDonnell
Douglas DC-10
1971 908 7,415 260
Airbus A300 1974 847 3,420 269
Boeing 767-200 1982 954 5,855 216
Boeing 747-400 1989 939 13,444 416
Boeing 777-
200ER
1995 905 13,420 305
Airbus A340-
500
2003 886 15,800 313
Boeing 777-
200LR
2006 945 17,446 303
Airbus A380 2007 930 14,800 555
Table: 1.1: Main Commercial Passenger Aircraft 1935 – 2007 (source: Leinbach, T.R. and
Bowen. J.T. (2004), cited in Rodrigue, J. (2005) Updated by author.
The very notion of a “hub” implies some kind of geographical confluence of
activity, in this case aviation activity. Since the whole essence of the geographical
discipline maintains a strong spatial element, air hubs present the perfect opportunity
for geographers in that they involve the coagulation of aircraft, passengers and cargo
in some kind of a spatial hierarchy. This spatial hierarchy may take the form of a
regional gateway, or a global centre for aviation activity depending on the air hub in
question. Thus there is a strong correlation between airport hub intensity and
extensiveness and the global reach of any city in the world. A significant portion of
3
Chapter 6 presents the case where given current technology, certain city pairings (e.g. London –
Sydney) are now possible to connect via a direct flight but the reality is that such flights have not taken
place due to a variety of reasons explained later.
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A Geographical Analysis of Air Hubs in Southeast Asia
Chapter Two is dedicated to illustrating some of the issues relating to air hubs which I
have briefly introduced above.
1.3 Aims, Objectives and Scope
This thesis has the primary aim of providing a critical understanding of hub
airport formation and development in Southeast Asia by adopting a geographical
framework. I seek to explore why certain airlines and airports are more successful
than others, and how airlines use hubbing to increase their network coverage and
reach. The intricate linkages between airlines that use the sixth freedom rights and
airports which situate themselves as hubs will be discussed by looking at the extent to
which flag carriers contribute to airport hub formation. Thus, an overview of airport
development (which is intrinsically related to the fortunes of the flag carrier) will be
essential to establish an understanding of past and contemporary trends. Next, 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. Thirdly, this paper also seeks to use 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.
Although not the central focus of this thesis, the impact of Low Cost Carriers (LCCs)
on air hub development shall be alluded to, especially in the light of increased
regional competition by states to become the dominant air hub in Southeast Asia.
Finally, I seek to situate my findings in the broader socio-economic context of the
region. This involves the application of established conceptual frameworks to aviation
geography and the relation of the issues at hand with those regarding the larger
question of globalization of economic activities.
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A Geographical Analysis of Air Hubs in Southeast Asia
As early as 1978, Robinson and Bamford in their flagship book Geography of
Transport observed the importance of the Southeast Asian region in the air transport
industry. They noted that “because south-east Asia is a great ‘cross-roads’ [sic] of the
world, the region has assumed a very significant role in international aviation while
the very varied physiographic character of the region together with the sparsity of
alternative modes of travel both within and between several political units have
promoted internal air links” (Robinson & Bamford, 1978: 193). Southeast Asia’s
airline industry has come a long way since the 1940s when fledgling flag carriers
were being developed to the early 1970s which heralded the entry of wide-bodied
aircraft that enabled these carriers to drastically increase their capacities. Although
Southeast Asia did not contribute a sizable amount of traffic, its airlines were situated
conveniently at stopover locations along expanding long-haul routes, and inbound
tourism was growing rapidly (Hooper, 2005: 336).
Even within the region, air transport remains the predominant mode of
transport due to its geographical incontiguity consisting of mainland, insular and
archipelagic maritime states. Recent developments in Southeast Asia like the
development of new airports and the rise of Low Cost Carriers (LCCs) have made the
region an interesting and exciting context to study air transport. Although a
comprehensive study of all airlines and airports in the region is long overdue and
extremely warranted, space and information constraints dictate otherwise and render
such a task unfeasible for the purpose of this thesis. The scope of analysis for this
thesis covers the three major and arguably most important hub airports in Southeast
Asia - Singapore Changi Airport, Kuala Lumpur International Airport, and Bangkok
9
A Geographical Analysis of Air Hubs in Southeast Asia
International Airport (Don Muang and Suvarnabhumi); and their relationships with
their respective flag carriers namely - Singapore Airlines, Malaysia Airlines, and Thai
Airways. These carriers and airports were chosen on the basis of their high impact
levels and larger share of the Southeast Asian air transport market. The analysis is
focused solely on passenger traffic and the situation with freight and mail (although
important in its own right) is omitted due to length constraints.
1.4 Significance of Study
Contemporary literature on air transport focuses either on the commercial
aspects of air transport, or the policy, planning and management perspectives.
Similarly, scholars often choose to focus their work on the airlines, airports or state
and industry issues. Little in contrast has been written on the relationships between
different components and sectors in air transport. The regional approach adopted by
this thesis differs from the sectoral approaches outlined above. I aim to fill one small
part of this lacuna in academic literature through this research on air hubs in Southeast
Asia.
An understanding of such airport-airline relationships will enable us to better
account for the rise and demise of airlines and airports in the region, as well as to be
able to examine different developmental trajectories taken by different
airlines/airports from a historical context to better explain and predict future trends in
air transport. Thus, the findings of this thesis serve not only as a descriptive tool to
better understand Southeast Asian air transport, but also to some extent an analytical
one to make conjectures for future tendencies for hubbing as a strategic priority for
states.
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A Geographical Analysis of Air Hubs in Southeast Asia
1.5 Methodology
This thesis firstly adopts a somewhat historical perspective by first providing
the contextual background on the developmental trajectories of the selected hub
airports. This is achieved primarily through a literature review of published secondary
sources and annual reports of these airports. I shall attempt to provide an extensive
literature review of works relating to both airline and airport development in the
region, as well as more general works on air transport in- and outside of the
geographical discipline. An analysis of newspaper articles will also be undertaken to
provide additional information not available from official sources as well as to
provide the media perspectives on such issues. A spatial analysis of past and present
airline route networks and airport spoke networks will be provided to determine the
extent to which hub airports are dominated by flag carriers. This is done through a
chronological mapping of airline and airport networks by deriving information from
airline flight timetables and other aviation-related reports and documents. A
theoretical investigation of the degree of connectivity of hub airport will allow us to
measure the “hubness” of the airports. Using the case study of the Australia – Europe
“Kangaroo” Route, a large scale quantitative survey with Australian travelers will
provide an empirical insight into factors which affect consumers’ airline and airport
hub choice.
1.6 Outline of Thesis
A rough outline of this thesis is as follows. In Chapter Two, a review of the
literature on air hubs will be undertaken. This not only highlights the works that have
been done to date, but also seeks to provide conceptual underpinnings to this study.
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A Geographical Analysis of Air Hubs in Southeast Asia
The issue of regulation and liberalization in the air transport industry will also be
discussed, paying attention issues of air rights and conventions. This chapter serves as
a foundation for many of the themes and trends discussed in the later chapters.
Chapter Three focuses on the developmental experiences of the selected
airports in the region. In particular, the histories of main international airports will be
traced and future expansion plans will be given some examination. An overview of
their current and future operating capacities will also be provided.
Chapter Four deals with the methodological issues pertaining to this research.
The choice of research methods will be justified and the methods themselves
explained in this chapter of the thesis. Limitations of the employed methods will also
be critically discussed.
Chapter Five presents the findings of the research and provides an empirical
examination of the current status of air hubs in Southeast Asia. I examine the degree
of “connectedness” of the various airports and the extent to which the national airline
is dominant in hub formation. Also, a periodic analysis will be provided to see
temporal changes in the statuses of the air hubs. The notion of a regional “open skies”
policy will also be considered as a necessary tenet for the continued success and
survival of air hubs in Southeast Asia.
The sixth and penultimate chapter presents a case study of the Australia –
Europe Kangaroo Route. Flight frequencies, volumes and schedules are compared and
using travelers’ choice analysis, this chapter will allow us to see the “other” side of air
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A Geographical Analysis of Air Hubs in Southeast Asia
hub development from the user’s perspective. The findings from this case study will
also add an empirical dimension to issues and themes discussed in this thesis.
Finally, the concluding chapter reviews and summarizes the issues raised in
this thesis and highlights some of the results and conclusions of this study.
Suggestions for some directions for future research will also be provided at the end of
the chapter.
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