US domestic air travel: hubs exceed limits, ex-hubs rebuild

Consolidation in the US market has resulted in large hubs reaching or exceeding their passenger thresholds while other airports caught in the crosshairs of mergers have spent the better part of the past decade attempting to rebuild in the wake of losing their hub status. Thanks to service expansion by low cost airlines, many of those airports are getting close to reaching historical passenger levels, reflecting their ability to adapt to new marketplace dynamics.

With the three large global network airlines relying on their hubs now more than ever to maximise high-yielding connecting passengers, it is imperative that the infrastructure at those airports supports growing passenger numbers throughout. That scenario is casting the spotlight on the age-old debate in infrastructure funding that pits airlines against airports.

A new infrastructure plan introduced by US President Donald Trump in early 2018 proposed some changes in the governance of airports, but it remains unclear whether those proposals will materialise into actual legislation. The result is a continuation of a status quo that in many ways fails to meet the demands of the US market. The inertia begs a question - is it time to give serious consideration to airport privatisation in the US?