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The evolution of low cost carriers in Australia

    Panarat Srisaeng Affiliation
    ; Glenn S. Baxter Affiliation
    ; Graham Wild Affiliation

Abstract

Due to the vast distances across the country as well as between urban centres, Australia is heavily reliant upon its air transport industry. Following deregulation of Australia's domestic air travel market on the 30th October, 1990, low cost carriers have entered the market. Australia's LCC market has had three discrete phases. The first wave occurred between 1990 and 1993 and was subsequently followed by a duopoly period in 1994–1999. The second wave occurred between 2000 and 2006 and the final wave has been in the post-2006 period. This paper examines the evolution of Australia's domestic low cost carrier airline market and finds that by 2010, low cost carriers had captured around 64 per cent of the market. Following the evolution of the “Virgin Australia” business model from a low cost carrier to a full service network carrier, commencing in 2011, the low cost carrier's market share has declined significantly and is now around 31 per cent. “Jetstar” and “Tiger Airways” are the two major carriers presently operating in this market segment.


First published online: 22 Dec 2014

Keyword : Australia, airlines, business model, aviation policy, low-cost carriers

How to Cite
Srisaeng, P., Baxter, G. S., & Wild, G. (2014). The evolution of low cost carriers in Australia. Aviation, 18(4), 203-216. https://doi.org/10.3846/16487788.2014.987485
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Dec 22, 2014
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This work is licensed under a Creative Commons Attribution 4.0 International License.