Airlines to Ride out the Recession

Australia’s Domestic Airlines – Riding Out the Recession

The October 1990 deregulation of Australia’s aviation industry coincided with a serious downturn in economic activity, the duration and severity of which has been in stark contrast to the “soft landing” forecast for the economy some 18 months ago.

For both incumbent and new entrant airlines, filling the ever increasing numbers of seats in a recessed economy continues to add momentum to a period of sustained fare discounting never before seen in Australia.

While there is no doubt that every domestic airline’s bottom line is under pressure, the Government’s decision to deregulate the industry has been vindicated by the fact that air travel is at last accessible to the average Australian. Passenger numbers are currently running at record levels and will comfortably exceed 14 million this year for only the second time in history-the other occasion being the record 14. 3m carried in the 1988 Bicentennial year.

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