A smaller network carrier (hub and spoke airline ) is considering expanding its product by adding a new route connecting its hub with the "fortress hub " of a global network carrier (see Doganis Sections 9.6 & 9.7 ). Choose any one of the topics from Baye /Prince Chapter 13 and discuss its applicability to the entry decision For a smaller network carrier looking to expand its routes within an established hub and fortress hub there are several factors which need to be part of the consideration for the entry decision According to [Dog10 ] a global network carrier establishes a hub to exponentially increase it city pairs by pooling a majority of its passengers to a central airport before transferring them to their final destination via the spoke . The hub pools the passengers and act as a feeder to the spoke providing adequate passenger to feed multiple daily spoke operation . The fortress hub goes an additional step by monopolizing the hub gates so a majority of the airport gates are owned by the global carrier making it difficult for new carriers to enter the market . With that in mind , a smaller network carrier looking to expand it routes by connecting a hub to a fortress hub must evaluate the market condition prior to deciding to move forward on expansion Let's assume that there is a global network carrier operating the hub to the fortress hub but there is adequate e passenger to support more carriers . For the smaller network , one area where it should consider is the risk of operating cost being raised ("Raising Rivals ' Cost to lessen Competition " [Mic17 ] by the global network . Given that the global network will likely own most of the terminal at the fortress hub , they can increase terminal fees once they realize there is competition operating within its fortress . They may also look to market the connection to increase awareness and draw more customers , this will inevitable force the smaller carrier to invest in advertisement to compete and stay afloat but simultaneously increase operating cost The global network may also look to lower it ticket prices for that connection forcing the smaller carrier to lower it prices to continue to draw customers . All of these factors are possibilities a smaller network carrier should consider when determining g to add a route between hub and fortress hub . Each of factors (terminal fees , new advertisement , lower ticket prices ) will increase operating cost and thin out profit margins for a smaller network carrier which can ultimately lead to a failure for the expansion . Alternatively , if it works , then there is something the smaller carrier should look at as being a formidable competitor that can look to expand other routes and increase it profit margins