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Abstract
This paper will look at the Airline Transport system in Australia, examining trends in the
regulatory framework and what they have forced the onboard players to do to survive. The
Australian airline industry has seen significant reforms to its policy and operating atmosphere
over the past decade, culminating in very stormy economic situations in that period (Osborne,
2013). This paper examines these mayhems and some of the threshold matters arising,
Introduction
Air transportation is a means of transport through which air conveys passengers, mail, and
freight. Australia has an outstanding, high-capacity Transport system record and an advanced
airline regulatory framework. However, there are opportunities for the system to be improved to
Australia is more dependent on air transport than many other states due to its massive and
sparingly populated landscape, and its detachment from many of the world's population centers.
Australia's air travel plays a significant role in the nation's connectivity and economy
(Wensveen, 2010).
With this estimated growth of air transport reliance, the challenge for Australian
Regulatory framework at large will be to guarantee other players of their security and smooth
operations in a cost-effective way (John Kain, 2002). On the other hand, the movement of people
and their goods to the carriers should be well facilitated through screening points in a well-timed
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Australia Regulatory Framework
airline operations remain reasonably regulated at the Commonwealth level. International air
travels are subject to the comprehensive capacity regulations that are part of the traditional
system of mutual air service agreements (ASAs) that reinforce the industry (O'Sullivan, 2015).
ASA's bilateral represent the international regulatory framework facilitating the operation
of programmed international air services between nations. These treaties regulate the amount of
airline seat capacity to be set out on scheduled services to the individual state to state routes; they
In the year 2007, airspace regulation mandate was relocated from Air services Australia
(Air services) to CASA, making it the solitary welfare regulator for the civil aviation system in
Australia.
The industry was ostensibly 'deregulated' at the national level with the termination of the
two airline dogma in 1990. Nevertheless, some federal government upholds economic regulation
of intra-state routes. At the national level, the Australian Competition and Consumer
Commission (ACCC) regulates the state of competition; in accord with the trade practices
errands.
Another regulatory body is the National Transport Commission (NTC). It was put in
place in the year 2003 with continuing duty to progress, control and maintain even or nationally
steady regulatory and operational changes concerning roads, rail and air transport.
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As of 2012, the Australian air transport industry comprised roughly 20,500 active
aircraft, together with over 7,500 sports and recreational aviation aircraft.
A substantial global trend that is opening up in Australia is the swift emergence of low-
cost international airlines. High Profile European examples include Irish airline and Ryan air
while South-west Airlines is an established American model. These are occasionally denoted as
'value-based airlines', basing on their focus on the aggressive repression of costs to withstand
highly competitive fare rates (DIRD, 2012). Australian Airlines and Freedom Air are the
Australasian airlines have been introduced in recent years to cater for this growing market.
Unlike selected few of the new low-cost international carriers in Australia; these airlines are not
self-regulating. They are fully-owned, separate detachments of Qantas and Air New Zealand (Air
policy of permitting more than one Australian international carrier to operate arranged services
to and from Australia. Unfortunately, the September 2001 letdown of the Ansett Airlines team
gave rise to the end to Ansett International's short-term operations. Notably, Qantas is once again
the only Australian flag bearer. On the other hand, Virgin Blue has motioned its intention to
operate in some international markets in Australia's direct regions, such as the trans-Tasman
Air transport; travelers carried in Australia was most recently measured at 70883315.08
in year 2013, conferring to World Bank statistics. Air commuters carried comprise both domestic
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Challenges facing the Australian airline industry
RPT sector, while not superfluously burdening smaller operators. The main airlines mainly use
modest much aircraft compared to other departments (John Kain, 2002). In the year 2012, the
average age of the Australian central airline fleet was eight years old, in comparison to 28 years
for smaller operators and GA. The different scale between the two sectors implies the
insinuations for the types of safety systems they use. In this light, CASA ought to account for
Another challenge is the concern on current poor integration between the airline industry
and the regulator. In modern years, the regulator has embraced an across the board hardline
attitude, that is not suitable for a progressive aviation nation such as Australia (Tom Young,
2012). Consequently, relationships involving the industry and the Civil Aviation Safety
The guidelines and regulations that have administered the air transport industry for many
years are facing opposing. The rules were formerly known for the innumerable motivations.
Drivers include; safety, national esteem, national defense, regional and urban expansion,
However, there is a mounting consensus that pointless obstructive regulations may have
cost air transportation to the biggest possible part of the population; the vital goal of air transport
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policies. This place a contention on whether to revise the dogmata or convince the system
A close look at global air transport accident statistics indicates that Australia is one of the
expectations are higher. Previous records cannot be a mirror or an indication of the future. Active
air transport system can only be efficient through a constant aggressive evolution of the current
system.
regulation by use of a trust and verify' mechanism. Working together with industry to give
superior safety standards and make sure that the regulator keeps in touch with quickly advancing
technology and security means. At times, specific operators should push the boundaries and
necessitate close regulatory oversight and a company regulatory response (O'Sullivan, 2015).
indispensable. Some states with progressive air transport regulatory frameworks have established
cooperative relationships between the regulators and industry, pushing for open sharing of
operational data. To achieve edge of trust in Australia, the current combative relationship
between industry and CASA should be addressed. Sharing operational and security information
The entire system, specifically Australia air transport regulatory framework should
the country may not be pertinent to other extensive markets. State regulation should continue to
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restrict many unions. Airlines should target to pursue partnerships that can complement and even
CASA and the other regulatory bodies in the industry need to create a combined
operative relationship underpinning mutual trust and respect. Consequently, CASA should set a
new strategic course. The appointment of the new Director of air transport safety regulator
should deliberate on searching for a person with leadership and reform management aptitudes,
rather than principally aviation proficiency (Osborne, 2013). Other authorities have deployed
leaders without an aviation contextual, who have been prosperous in moving to the right strategic
The CASA Board must exercise full authority over the organization. The recruitment of
two additional directors and filling of two impending positions gives an opportunity to certify the
CASA Board has a relevant assortment of skills as well as veteran specialists from across the
aviation industry. To help progress the industry; the regulatory relationship is recommended.
CASA should align its organization with industry. It should re-establish small administrative
The regulatory inspection program must imitate international auditing standards, fully
releasing findings after an audit and at exit briefings. Outcomes should be categorized on a scale
of weightiness. Also, CASA should engage a third party commercial auditor as a means of
An immediate resolve to the current program is needed, and a more controllable (but
regular) process of intermittent maintenance should be put in place. This support ought to only
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alter regulations when modifications are required to expand safety measures or to ensure
harmonization with international best practice and the Ideals and Commended Practices of the
International Civil Aviation Organization (ICAO). Australia has to ensure that its exclusive
There is a seeming presence of economies of scale. The profits are by way of minimized
costs from the swelling size of operations in the national airline industry. The scenario proposes
that there may be a continuing necessity for regulation to avert monopolization over the long
term. In the absence of in effect economic, regulatory control of the industry, it has the
perspective to grow into a Qantas monopoly (Ross Love, 2014). Huge capital and setup costs
have by tradition led to high entry costs and have amplified the market muscle of the incumbent
Should such conditions endure to prevail over an extended term, it rears various subjects.
Whether Australia's local market is large enough to withstand competitive supply and whether a
casually regulated oligopoly is still suitable (John Kain, 2002). Even though the past two airline
policy was not a substitute of an industry-specific economic. The regulatory management for
airlines is prone to the overall competition policy necessities of the Trade Practices Act 1974.
Trade practices are controlled by the Australian Competition and Consumer Commission.
bilateral air service treaties unless there are effective multilateral strategies towards a more
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Conclusion
significant degree by public assurance in the safety and security of regular public transport air
amenities. To protect against illegitimate intruders in the aviation industry, an encrusted attitude
to preemptive safety is reinforced by the Aviation Transport Security Act 2004 (John Kain,
2002). The air transport system has long wriggled with limitations, but the present growth phase
in many markets, joined with growing technology and customer partialities, offers a real
opportunity. By espousing the measures recommended, carriers and other players can furnace
better relationships with stakeholders. They can cut costs efficiently, and progress their financial
performance in a maintainable way. This cane is in sole efforts with the right group of partners
(Wensveen, 2010).
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References
Available at
http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pu
bs/rp/rp0203/03RP10
Love, R., 2014. The standard has been set: adapt or die. Australian Business Review, 28 March.
Available at http://www.zdnet.com/article/10-challenges-for-your-airline-and-airport-in-2013/
O'Sullivan, M., 2015. Virgin Australia flies higher in domestic market but faces challenges
Tom Young, E. v. B., 2012. Australia; Aviation security: the Legislative update. [Online]
Available at http://www.mondaq.com/australia/x/198956/Aviation/The+Hub+Legislative+update
Wensveen, J., 2010. The Airline Industry: Trends, Challenges, And Strategies, New York, USA:
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