Government regulations and deregulation towards airasia

The Handley Page W. The earliest fixed wing airline in Europe was Aircraft Transport and Travelformed by George Holt Thomas in ; via a series of takeovers and mergers, this company is an ancestor of modern-day British Airways.

Government regulations and deregulation towards airasia

Qantas The Qantas Airways Group has extensive Government regulations and deregulation towards airasia and ownership links with a number of regional carriers.

Qantas also has code-sharing 4 and alliance arrangements with international carriers through the One World Alliance.


This is the second largest of the five 'airline alliances', or the groupings of allied airlines that underpin the globalisation of the airline industry. The Ansett group was a member of the largest alliance, the Star Alliance.

Qantas also has strong international equity links with British Airways, which owns over Qantas has a Qantas Domestic is now the only provider of nationwide, 'full-service' scheduled air services. Qantas has expanded its fleet rapidly since the Ansett group collapsed, when Qantas's domestic market share was 55 per cent; it now has around 70 per cent of the travel market on the domestic trunk route network.

Qantas's extensive domestic and international route network can be seen by clicking here to view an interactive electronic route map. In response to the growing popularity of discount air travel in recent years, and to meet the competitive challenge from Virgin Blue at the 'low fare' end of the market, Qantas has built on the low-cost operating arrangements it inherited in its May acquisition of Impulse Airlines.

Qantas has also further built on Impulse's value-based marketing approach by expanding its range of 'all-economy', leisure-oriented services and buying more Boeing s.

Virgin Blue Virgin Blue Airlines is the Brisbane-based subsidiary of the Virgin group of companies and began operation in The Virgin Group owns 46 per cent of the equity in Virgin Blue company while Patrick Corporation—the large, diversified Australian transport and logistics company—acquired 50 per cent of the airline in — Senior staff of Virgin Blue hold the remaining four per cent.

As a member of the Virgin group, Virgin Blue has loose links with Virgin Atlanticwhich operates international services out of Londonand Virgin Express, the group's low-fare European airline based in Brussels.

Government regulations and deregulation towards airasia

Virgin Blue is not a member of any of the international airline alliances. In Octoberhowever, Virgin Blue began to code-share with a Star Alliance member, United Airlines, somewhat compensating the latter for the loss of its Australian Star Alliance partner, the Ansett group.

Since the winding-up of the Ansett group in earlyVirgin Blue has provided the main trunk route competition for Qantas. Virgin Blue operates mainly on the busiest portions of the trunk network, offering single-class, no-frills, low-cost air travel, mainly between selected capital cities and other centres.

To contain costs, Virgin Blue operates only one aircraft type, a Boeing jet fleet, while crew costs are minimised through work arrangements which require crew to have a relatively wide range of skills and to perform a relatively broad array of work tasks. In this respect, Virgin Blue has many of the characteristics of the new breed of low cost airlines emerging worldwide known as 'value-based airlines'.

However, as its route network and service frequencies have expanded, it has shown an increasing marketing orientation towards travellers who are more concerned about travel times and service frequencies and less concerned about fare levels, such as business travellers.

Turbulent Times:Australian Airline Industry Issues 2003

Although initially reporting trading losses, the modestly capitalised airline's trading position has turned around, bolstered partly by the Ansett group's collapse.

Virgin Blue has taken over much of the domestic terminal space that the Ansett group occupied at the major airports. For example, on 6 NovemberVirgin Blue announced that it had entered an agreement with Sydney Airports Corporation Limited Industry Finance Revenue for domestic operators derives chiefly from the business sector and domestic and inbound tourism.

Government regulations and deregulation towards airasia

It has been estimated that domestic tourism which includes visiting relatives and friends contributes 40 per cent of revenue, with the business sector contributing 35 per cent and inbound tourism 25 per cent.

These gave the incumbents decided advantages over potential entrants in terms of long term contractual access to terminals and landing and take-off slots. Since the Ansett group's collapse, the industry's profitability has held up well by world standards, despite the inbound tourism slump.

Qantas increased its profitability partly by picking up much of the 'high yield end' of the market eg business travel which Ansett Australia formerly filled. That the recent steep escalations in fuel prices do not appear to have had significant adverse consequences for the Australian airline industry's profitability is partly because airline operators hedge against large, short-term cost increases of this nature through forward purchase contract arrangements.

Deregulation - Wikipedia

In addition, Virgin Blue operates mainly new generation aircraft that are very fuel efficient, while Qantas has progressively withdrawn those aircraft types that are less fuel efficient. Aviation war-risk insurance has become a significant issue since the September 11 terrorist events in the United States in War-risk insurance covers losses arising from acts of war, including acts of terrorism, strikes, riots and sabotage.However, the industry can be very vulnerable to government regulations, economic influences, extreme weather events and geopolitical factors such as war and terrorism.

The SIC/NAICS code for . Low-cost carriers in Asia: Deregulation, regional liberalization and secondary airports. Soon after these deregulation measures, Thai AirAsia, Nok Air and One-Two-Go started domestic operation as LCCs.

A PESTLE analysis of the airlines industry:

Airlines, and was dominated by Malaysian Airlines and Singapore Airlines as a duopoly. In late , the Malaysian government decided to. May 02,  · Free Essays on Airline Government Regulations. REGULATION AND DEREGULATION Corporate with Shin Corporation Support _from the Government of Malaysia_ AirAsia had attained the fully support from the Malaysia government in Year in order to help to boost the under-used Kuala Lumpur International Airport.

Doctrine Discipline of the troops execution of laws and instruction Government regulations and organization Source: Samui&Amy () The art of Sun Tzu warfare highlights that the secrets of success in battlefield need effective strategic planning.

Where Did The Idea Of AirAsia Come From? From the deregulation in the ’s till the early ’s the transformation of the low cost concept in the United States can only be described as a series of innovations, proliferations and consolidations where many other low cost airlines (e.g. Pacific Southwest, New York Air, Jet America.

The Australian airline industry traditionally has been relatively profitable by world standards, although this varies among airlines and sectors, reflecting the on-going consequences of the two airline policy and airport leasing agreements.

Airasia - Sample Essays