Aviation Outlook

Business as Usual?

Perhaps the most intriguing feature of the great Domestic Aviation Deregulation debate is the strength of the pervasive attitude among the various Canberra bureaucracies which holds that there will, in effect, be very little change as a result of the October 1990 end of the Two Airlines Agreement.

One might expect to find this view based on some economic analysis which indicated that domestic trunk route travel in Australia was for some reason a natural duopoly and, furthermore, one which tended, in the absence of entry barriers, to stability.

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