A Tale Of 2 Airlines: The Importance Of Competition At Shared Hubs

Traditionally, legacy carriers in the United States will aim to target a few different markets where they will establish large hub facilities. American Airlines and United Airlines are no exception to this rule, as each has a dedicated set of major legacy hubs across the country, and, for the most part, these systems do not really overlap. Airlines have a strong incentive to avoid competition at pretty much all costs, as having another airline operate a hub near your hub will traditionally result in an inability for either to dominate the market.