This report presents a review of the existing methodology for calculating attributable airport, airway and other related costs and an evaluation of alternative methods. These costs are used in the Department of Aviation's cost recovery program.

• Attributable Aviation Costs: Review of Valuation Methods
  
  report_055.pdf
  (3.64 MB)

The production and development of a 'National Aerodrome Plan' (NAP) represents a continuous and, in many ways, an evolving process. However, the development of a strategic framework, as presented in this Report, allows the presentation of quantitative and qualitative information and methodologies which need to be considered in developing a national perspective for the plan.

• National Aerodrome Plan: A Strategic Framework
  
  report_059.pdf
  (17.73 MB)

The introduction by East–West Airlines of low-cost fares on the Sydney–Melbourne and Sydney–Brisbane routes in the first half of 1983 generated considerable debate within the aviation industry. The early stages of this debate were characterised by a lack of data on the passenger response to these innovative fares. In this Paper the results of a series of four surveys and an analysis of trunk network patronage designed to assess passenger response to discount air fares are described. The work was not restricted to the response of East-West Airlines' passengers but also included the response of passengers who travelled with Ansett Airlines of Australia and Trans Australia Airlines. One of the implications from this analysis is that a policy of minimising spillage of full fare passengers may be inconsistent with profit maximisation in the short term. Another implication is that optimal seat reservation procedures require data on the unsatisfied demand for full and discount fares.

This Paper has been prepared as a submission to the Independent Review of Economic Regulation of Domestic Aviation. The approach followed in the submission has two parts. The first presents an analysis of the structure and performance of the airline industry under the existing system of economic regulation. The second considers the economic theory of industry structure and the general rationale for regulation and how they might be applied to the airline industry. From the performance analysis it is possible to identify areas in which performance might be improved and the theoretical considerations provide insights into possible ways in which that improvement might be achieved.

• Competition and Regulation in Domestic Aviation: Submission to Independent Review
  
  op_072.pdf
  (15.39 MB)

This Paper discusses the aviation regulatory system in the United States and its effects on the airline industry there. It concentrates on the domestic passenger market as this is the area currently under review in Australia. Air cargo is briefly considered but there is no discussion of changes in international aviation policy.

• Deregulation of the Domestic Airline Industry in the United States
  
  ip_016.pdf
  (5.15 MB)

This Paper presents a demand analysis of New South Wales regional and commuter intrastate air services. The main objective of this study was to provide forecasts of patronage to the year 2000 for New South Wales regional and commuter intrastate air services. The results may assist in understanding the demand for intrastate aviation services and help in the evaluation of policy options.

• Demand for NSW Intrastate Air Travel
  
  ip_017.pdf
  (2.66 MB)

This Paper examines the demand for air travel in Australia and forecasts domestic passenger and freight aviation demand to the end of the century at five-year intervals. The analysis begins by reviewing recent trends in patronage and air fares. It then identifies other major factors affecting demand as background for the empirical analysis. The study period for the empirical analysis covers the past eight years, 1977 to 1984, using quarterly data. The models provide, among other things, estimates of price and income elasticities of demand (or demand responses) for air travel in Australia. Finally, the Paper presents forecast growth rates for air travel subject to different future growth scenarios to the year 2000.

• Demand for Australian Domestic Aviation Services: Forecasts by Market Segment
  
  op_079.pdf
  (5.51 MB)

The discussion of domestic aviation issues in Australia has historically focused on the passenger market. This reflects the dominance of passenger transport in the operations of the domestic airlines and the relatively small proportion of domestic cargo that is carried by air. Despite this emphasis on passenger operations, the Commonwealth Government has implemented regulations specifically directed at air cargo and the major airlines have evolved separate strategies for cargo traffic in recent years. Cargo is now an important element of Australia's domestic aviation industry and is a significant source of income for several carriers. This Paper presents the findings of a BTE study of the domestic air cargo industry in Australia.

• Domestic Air Cargo Industry in Australia
  
  op_087.pdf
  (5.59 MB)

There has not been a comprehensive study of trends and changes in the institutional and commercial parameters which affect Australia's international aviation industry since the International Civil Aviation Policy review of 1978. The aim of the work reported in this Paper was to document the significant developments in international aviation on both a global scale and for Australian routes in particular. The historical trends in supply of and demand for international air passenger services to and from Australia are examined and the information used to forecast passenger numbers to the year 2000 for various markets.

• Trends and Prospects for Australian International Air Transport
  
  op_088.pdf
  (7.31 MB)

Forecasts for both domestic and international aircraft movements are generated for the years 1990, 1995 and 2000. From these forecasts growth rates in aircraft traffic have been calculated for the major international airports and for the major sectors in the Australian domestic aviation network. The time series model produces annual aircraft movements whereas the simulation model produces movements for a standard business day divided into morning, midday and evening periods.

• Forecasting Aircraft Movements at Major Australian Airports
  
  op_092.pdf
  (5.42 MB)