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- W599965100 abstract "The Australian domestic airline industry at the present time provides a useful flying test-bed for the contestable market analysis of William Baum?l (1982). Whether the aircraft flies in Australia depends on the findings of a committee of inquiry appointed by the Australian Government to advise whether there should be any, and if so how much, relaxation of the long-standing regulated cartel called the Two Airline System. Criticisms of Baumol's use of the airline industry to support the contestability idea, notably that of William G. Shepherd (1984), will be tested in a modified adversary process in a real industry, with real outcomes at stake. This article is an attempt to explore these issues, to see how far a simple a priori analysis can take us without resort to the claim and counter-claim of the interested airlines' cost experts. A central theme in the history of the Australian airline industry is the resist ance by major carriers of the day to entry by regional airlines into links between capital cities (Brogden, 1968). This has been going on for over thirty years. In the late nineteen-fifties, Butler Air Transport Ltd. tried to compete between Melbourne and Sydney with Elizabethan and then with Viscount aircraft. Ansett Airlines was already competing for the low-price end of this market with DC-3 and then with CV340 and 440 aircraft. Each incursor saw a profitable niche for itself in the major airlines' main city-pair market. Recently East West Airlines has been attempting the same thing: first, from its base as a New South Wales regional carrier, on short-haul East Coast routes, and latterly, after a merger with a West Australian airline, on transcontinental routes too. East West, with its ambitions for growth and the financial strength of its owners, is challenging the Australian two-airline policy and its latter-day regulator, the Independent Air Fares Tribunal. * Ministry of Transport, Victoria, Australia. The views expressed in this article are not necess arily those of the Minister, or of the Government of Victoria." @default.
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- W599965100 date "1986-05-01" @default.
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- W599965100 title "CONTESTABLE MARKET ANALYSIS IN THE AUSTRALIAN DOMESTIC AIRLINE INDUSTRY" @default.
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