Industry Analysis & Industry Trends
The past five years started with buoyant demand for air travel and high fuel prices boosted ticket prices. However, domestic airlines faced major hurdles as global economic conditions plummeted. Falling consumer confidence and the constant threat of terrorist attacks and disease outbreaks over the period have weighed against air travel demand in Australia. In particular, some business travellers have abandoned air travel in favour of teleconferences and other forms of electronic communication. Demand also weakened as Australian tourists shelved travel plans.
In response to the declining demand in late 2008, operators slashed prices. The heavy discounting and reductions in the fuel excise resulted in passenger numbers stabilising in 2009... purchase to read more
Industry Report - Industry Products Chapter
The industry's main business is the transportation of passengers on any scheduled route within Australia, between main cities or regionally. Each year 85.0% to 90.0% of industry revenue is generated by ticket sales. However, this has declined in recent years due to the heavy discounting of fares across the aviation industry and the reduction of the fuel surcharge. Fewer business travellers have also put industry players on edge.
Business travellers generally prefer full-fare service due to the flexible nature of the tickets, enabling them to change flights at minimal costs and access business lounges. Tourists and families often favour low-cost airlines... purchase to read more