Airports and the Wealth of Cities
If passengers is significant, but number of flights is not, that implies that success lies in having larger than average planes come in. Ie, a hub airport. Assuming that the the cost of flying is proportional to the square of size, while the passenger capacity is proportionate to the cube, larger planes offer lower seat-costs per passenger. Hence, the use of larger planes may also imply that the average seat-price to visit such an airport is lower. Status as a 'hub' airport also offers substantial accessibility benefits: More flights to more places, at greater frequencies, than for non-hub airports (ie, San Diego).
Showing posts with label massification. Show all posts
Showing posts with label massification. Show all posts
Thursday, April 25, 2019
super linear scaling and the network effect
'Super-linear scaling' is the generic descriptive term that complex-systems folk use to talk about a wide variety of phenomena, including both network and non-network effects. (VMT:population is characterized by super-linear scaling, for example).
The number of passengers at any airport has a number of causes, but can likely be attributed to one of two factors: local demand and the agglomeration economies offered by by massification. Local demand is probably itself non-linear: larger metro areas tend to be richer, richer areas tend to fly more. But massification is probably the main driver. Cost per flight rises with the square of area, but passengers per flight rise with the cube of area. Big planes are more efficient. So the hub-and-spoke model uses small planes to massify into large vehicles. The efficiencies are such that SLC-DC flights often take me through LA. That said, there is indubitably some advantage to being on the way: I spend a lot of time waiting for flights in Detroit, Chicago, Atlanta and DFW.
The number of passengers at any airport has a number of causes, but can likely be attributed to one of two factors: local demand and the agglomeration economies offered by by massification. Local demand is probably itself non-linear: larger metro areas tend to be richer, richer areas tend to fly more. But massification is probably the main driver. Cost per flight rises with the square of area, but passengers per flight rise with the cube of area. Big planes are more efficient. So the hub-and-spoke model uses small planes to massify into large vehicles. The efficiencies are such that SLC-DC flights often take me through LA. That said, there is indubitably some advantage to being on the way: I spend a lot of time waiting for flights in Detroit, Chicago, Atlanta and DFW.
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