Mesh network as a competitive advantage for European LCCs: An alternative topology to hub-and-spoke for selling online connections

Abstract

We introduce mesh networks as an alternative topology to hub-and-spoke networks for low-cost carriers (LCCs) to sell online connections, i.e., indirect connections requiring a transfer between direct connections within a carrier's own operated network. While a common global practice, none of the large independent intra-European LCCs has fully deployed such a network strategy. We define a point-to-point with online connections (PPWOC) representation to establish potential mesh networks for the three largest independent LCCs in Europe. After providing airline and airport metrics to describe structural properties, we also discuss managerial implications of the mesh networks and conclude that investing into hub-and-spoke systems may no longer be necessary if LCCs can gain and maintain a competitive advantage with the mesh network strategy