An exact solution to the HS network design problem

In this paper we describe an exact solution procedure, based on the results from using LP software lingo, for airline p-hub network optimization problems. The proposed procedure is a specialization of the well-known benders partitioning procedure; we evaluate and compare the algorithm on instances with up to 15 cities and different potential hubs of Chinese cities. Through the analysis, we can conclude that benders decomposition approach outperforms the lingo optimization in small number of network nodes, and the case experiment results can give some suggestions to airline companies when they set up their hub and spoke (HS) network.