Essays on Monopoly in Australian Regional Air Routes Assignment

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The paper "Monopoly in Australian Regional Air Routes" is a perfect example of an assignment on business. International and local aviation links Australians with one another and with the world at large. The sector is central to the economy of Australia. The government of Australia, through the Aviation Department, plays a major role in the prosperity of wellbeing and the economy of all Australians by developing a competitive, safe, and viable aviation industry. The industry is thus, regulated by the government regulatory framework and policies for the aviation industry (Kirby, 1996).

Nevertheless, the Australian aviation industry has experienced turbulent times in its history. There has been a decline in international tourism following terrorism activities and contagious diseases experienced in different parts of Canada and Asia. Additionally, the domestic market has experienced serious structural changes, which have affected the domestic carriers starting from the 1990s. The chart below highlights the changes in the number of operators. In 1984, operators with RPT services were 53. The number rose to 58 in1993 but has been decreasing with time. By 2008, only 4 have offered RPT facilities. The major routes, commonly referred to as the 'domestic trunk routes', have only two airlines, down from four in 2000.

In the same year, Ansett Australia and Qantas Airways controlled the domestic trunk routes with emerging entrants Impulse Airlines and Virgin Blue being restricted in the niche markets. Currently, the industry has an uneven two-airline framework, with Qantas dominating the market since it obtained the Impulse Airlines in early 2001 and the ensuing downfall of the Ansett group in late 2001 (Regional Aviation Association of Australia, 2011). The author argues in a well-organized manner that whereas Virgin Blue has speedily established its market segment, it still has less than one-third of the sector.

Competition levels widely vary within the international and domestic sectors.

References

Australian Government, (2001). Regional and remote aviation. Retrieved from: http://www.infrastructure.gov.au/aviation/regional/

Borenstein, S., & Rose, N. L. (2013). How airline markets work or do they? Regulatory reform in the airline industry. In Economic Regulation and Its Reform: What Have We Learned? USA, University of Chicago Press.

Homsombat, W., Lei, Z., & Fu, X. (2014). Competitive effects of the airlines-within-airlines strategy–Pricing and route entry patterns. Transportation Research Part E: Logistics and Transportation Review, 63, 1-16.

Kirby, M. G. (1996). Airline Economics of" Scale" and Australian Domestic Air Transport Policy. Journal of Transport Economics and Policy, 339-352.

Kirby, M. G., & Albon, R. P. (1985). Property Rights, Regulation and Efficiency: A Further Comment on Australia's Two‐Airline Policy. Economic Record, 61(2), 535-539.

Parliament of Australia, (2002). Australian airline industry. Retrieved From: http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp0203/03RP10

Regional Aviation Association of Australia, (2011). The regional aviation industry. Retrieved from: http://www.raaa.com.au/issues/the-industry.html

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