The most important element that distinguishes the LCC and the FSC models is the network structure. The
FSCs, also known as ‘network’ or ‘legacy’ carriers, complex operate hub-and-spoke networks that allow them to
achieve maximum connectivity for as many demand categories as possible (i.e. take anyone from anywhere to
everywhere), consistent with the ‘full service’ label. They achieve this by concentrating departures and arrivals at
certain hub airports, as close as possible in time, to increase the probability of connecting outbound flights with
inbound flights (Ben-Yosef, 2005). Operating hub-and-spoke networks delivers important cost efficiencies
associated with economies of density and scope. Moreover, hub dominance by the FSCs can potentially facilitate
strategic entry deterrence (Borenstein, 1989). On the other hand, the hub-and-spoke networks are more likely to
incur costs associated with delays, low and fluctuating utilization rates for aircraft and ground workforce and slow
turnaround.