The major reason behind the strategy of RA implementing new Hubs from each destination is to increasing the efficiency of its core capabilities. As RA is already known vastly at the airport as increased destinations without changing aircrafts is offered thus this would be a less cost strategy implementation and as the extension increases this give RA the bargaining power with other airports and weaken the position of its/ competitors. By implementing this strategy customers would be more inclined towards RA rather than alternative solutions. Offering this amount of dense cross connections network will help strengthen RA position towards other important airlines. Since these airlines already have a competitive advantage of offering a denser network flights, RA offering the same on a lower cost would help gain a huge market share for RA.…
