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Department of Infrastructure and Regional Development

The Bureau of Infrastructure, Transport and Regional Economics

Demand Elasticities for Air Travel to and from Australia

Publication Type:
Working Paper 20

Publication Subject(s):

0 642 23569 4


Release Date:
December 1995

This Working Paper explains why sound demand elasticities are of key importance to any assessment of the impact on passenger demand of changes to air services or aviation infrastructure. Using quarterly data from 1986 to 1993, the study provides updated and disaggregated estimates for Australia international travel markets through the development of econometric demand models. Twelve markets are examined: Australia-Germany, Italy, United Kingdom, Japan, Korea, Taiwan, Indonesia, Malaysia, Singapore, Fiji, New Zealand and the United States of America. The demand characteristics of different nationalities and passengers travelling for different purposes are identified and incorporated into the analysis.

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