Word: hubs
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Airline deregulation, instituted in 1978, has reduced competition, with major hub cities like Atlanta and Minneapolis dominated by a single carrier, which can virtually dictate fares. American Airlines, which dominates the market from Miami to the Caribbean, cut fares drastically a couple of years ago, when a reconstituted Pan Am came on the scene; only hours after Pan Am shut down last February, American's fares shot up. Miami travelers complain that American's busy schedule is something of a sham, with flights often canceled for mysterious reasons. On the route to Nassau, says Perla Martinez, a Miami travel agent...
Airline executives deny that they engage in anticompetitive practices, contend that individual horror stories don't reflect the industry's generally good service record and argue that the benefits of the hub system far outweigh its drawbacks. "It allows medium-size cities like Sacramento to have one-stop service to 200 cities," says American spokesman Chris Chiames. "If we didn't have the hub system," asserts Northwest spokesman Marta Laughlin, "we wouldn't have the number of passengers that are needed for the volume of service we offer. You pay a premium for convenience and accessibility...
Toronto, which can duplicate many of Boston's looks, may in fact be the Hub's toughest competitor, Dawson says...
...addition to such current shows, re-runs of NBC's "St. Elsewhere," ABC's "Spenser for Hire" and MTV's "Real World VI" offer viewers glimpses of the Hub...
With a relatively skimpy skyline, the Hub must rely on its "unique culture and particular scenery" to draw filmmakers, says film financier and Harvard Business School graduate...