Overview

Turbulent conditions: Intense competition has limited industry revenue

IBISWorld’s Domestic Airlines market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Qantas and Virgin, the industry's largest players, have engaged in intense price competition
  • The end of the price war has led to airfares increasing, particularly in business and economy
  • Airlines will introduce new fuel-efficient planes and provide extra perks to consumers

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    Industry Analysis & Industry Trends

    Operators in the Domestic Airlines industry have been subject to turbulent trading conditions over the past five years. Industry revenue is expected to rise at an annualised 0.4% over the five years through 2016-17, to $14.2 billion. This includes anticipated growth of 2.2% in the current year. A depreciating Australian dollar has assisted the broader tourism sector over the period, which has driven growth in inbound tourist numbers and the number of Australian's travelling domestically. This has benefited domestic airlines, due to the vast geographical distances between popular Australian tourist destinations that make air travel necessary...

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    Industry Report - Industry Locations Chapter

    The majority of airlines have their headquarters located in capital cities, particularly Sydney, Melbourne and Brisbane. This is because these cities have the busiest airports, due to the high population density on Australia's eastern seaboard compared with the rest of the country. Despite New South Wales being home to the busiest airport, Sydney Airport, the state is more significant as a hub for international transport, with domestic airlines preferring to locate their hubs in Victoria and Queensland. This is due to more available terminal space and lower traffic volumes compared with Sydney Airport. This trend is anticipated to continue over the coming years as Sydney Airport continues to face capacity issues. Cap..

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    Additional Insights for the Domestic Airlines Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Domestic Airlines Industry are

  • Links with travel agents and other suppliers
  • Optimum aircraft capacity utilisation
  • Ability to expand and curtail aircraft capacity in line with demand
  • IBISWorld analysts also discuss how external factors such as Domestic tourist visitor nights and Real household discretionary income in the Domestic Airlines industry impact industry performance..

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    Industry Products

    What is the Domestic Airlines Industry?

    Domestic airlines primarily operate aircraft on scheduled routes within Australia to transport both passengers and freight.

    Industry Products
    Full-fare and business passenger transport
    Low-fare passenger transport
    Freight transport
    Other services
    Industry Activities
    Scheduled domestic passenger air transportation
    Scheduled domestic freight air transportation
    Air transport terminal operation (except airports)

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Domestic tourist visitor nights
  • Real household discretionary income
  • Aircraft kilometres flown
  • International travel to Australia
  • World price of crude oil
  • Consumer sentiment index

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Domestic Airlines Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Domestic Airlines Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Mining
  • Rail, Air and Sea Freight Forwarding
  • Finance
  • Tourism
  • Postal and Courier Services

  • Key Selling Industries
  • Aircraft Manufacturing and Repair Services
  • Airport Operations
  • Catering Services
  • Non-Scheduled Air Transport
  • Petroleum Product Wholesaling

  • Products & Services
  • Full-fare and business passenger transport
  • Low-fare passenger transport
  • Freight transport
  • Other services
  • Chart: Domestic Airlines Industry Products and Services Segmentation

  • Demand Determinants
  • Leisure travellers
  • Business travellers
  • Freight

  • Major Markets
  • Domestic leisure travellers
  • Domestic business travellers
  • International travellers
  • Logistics companies
  • Chart: Major Market Segmentation for the Domestic Airlines Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Domestic Airlines

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Domestic Airlines Industry

  • Industry Globalization
    Major Companies
    Qantas Airways LimitedVirgin Australia Holdings Limited
  • Table: Qantas Airways Limited - financial performance
  • Table: Virgin Australia Holdings Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Domestic Airlines Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Domestic Airlines Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Airside Services
  • Services and facilities that are provided to aircraft by an airport or other entities. These include access to facilities like runways or providing services like firefighting and telecommunications.
  • Available Seat Kilometres
  • A measure of airline passenger capacity obtained by multiplying the number of seats available on each flight by the flight's distance.
  • International Air Transport Association (Iata)
  • Assists global airlines with cost savings, technology implementation and regulatory pressures.
  • Load Factor
  • An indicator of how efficiently an airline is using its available capacity, by dividing revenue passenger kilometres by available seat kilometres.
  • Revenue Passenger Kilometres
  • A measure of airline passenger volume obtained by multiplying the number of paying passengers carried on each flight by the flight's distance.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Domestic Airlines:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Domestic Airlines market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Domestic Airlines, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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