Reece

Two Airline Policy Annihilated by May Report

After almost two years in the making the Report of the Independent Review of Economic Regulation of Domestic Aviation – better known as the May Enquiry – was released in January and immediately revealed the full extent of public dissatisfaction with the present Australian airline regulatory environment.

Indeed the Report’s 862 pages provide a litany of what is wrong with the much-maligned Two Airline Policy (TAP) that has ruled our domestic airline system since the early fifties. Parallel scheduling, discount fares that are neither promoted nor available in practical terms, pseudo competition between the two majors and a fare base that most perceive to be too high are all highlighted as reasons why major growth stalled a decade ago in our airline system.

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