Designing an Integrated Model for Optimizing Air Hub Networks by Combining Technical and Marketing Criteria: A Case Study of the Iran’s Air Transport Industry

Tahmasebi, Alireza; Dashtlaali, Zahra; Dalvi Esfahan, Mohammad Reza

doi:10.22034/sep.2025.2064738.1344

Designing an Integrated Model for Optimizing Air Hub Networks by Combining Technical and Marketing Criteria: A Case Study of the Iran’s Air Transport Industry

Articles in Press

Document Type : Research Paper

Authors

Alireza Tahmasebi ¹

Zahra Dashtlaali ²

Mohammad Reza Dalvi Esfahan ³

¹ Ph.D. Student, Department of Management, Deh.C, Islamic Azad University, Isfahan, Iran

² Corresponding author: Assistant Professor, Department of Management, Deh.C, Islamic Azad University, Isfahan, Iran

³ Associate Professor, Department of Management, Deh.C, Islamic Azad University, Isfahan, Iran

10.22034/sep.2025.2064738.1344

Abstract

This study presents an integrated quantitative model for optimizing sub-hub location selection in Iran's air transport industry by combining technical and marketing criteria. Given existing challenges such as demand dispersion, fleet limitations, and sanctions, the research employs a hybrid methodology incorporating spatial analysis, mathematical modeling (the dynamic p-median problem), and metaheuristic algorithms (genetic and tabu search). The data includes actual statistics from Iran's domestic flights in 2021, an aerial distance matrix among 20 selected airports, and marketing indicators (customer satisfaction, advertising, seat occupancy rate) collected from airport and airline statistical yearbooks. Findings indicate that selecting four sub-hubs (Tehran, Bandar Abbas, Tabriz, Sari) while considering technical criteria (aerial distance, airport elevation, fleet capacity) and marketing factors (demand elasticity, advertising costs) can achieve 87% demand coverage with a 25% reduction in operational costs. Additionally, integrating dynamic pricing strategies with hub-and-spoke network design led to an 18% increase in seat occupancy rates. The results provide a novel decision-making framework for the aviation industry in developing countries facing similar conditions.

Highlights

Develops a quantitative model for sub-hubs by integrating technical and marketing criteria.
The results of this research are effective in developing countries with similar conditions.
Selecting four sub-hubs can achieve 87% demand coverage with a 25% reduction in operating costs.

Keywords

Hub network optimization

Airline revenue management

Airline marketing

Dynamic p-median problem

Genetic algorithm

Subjects

Management

Copyright © Alireza Tahmasebi, Zahra Dashtlaali, Mohammad Reza Dalvi Esfahan

License

This article is released under the Creative Commons Attribution (CC BY 4.0) license. Anyone is free to copy, share, translate, and adapt this article for any purpose, whether commercial or non-commercial, as long as proper citation is given to the authors and original publication.

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