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The Airline Industry

The Australian airline industry has seen unstable times after the September 11 attacks in US and the war in Iraq and the rising security concerns all around the world which led to a decline in tourism.

Moreover the industry experienced major changes over the past decade such as the closure of Ansett group, the merger of impulse airlines into Qantas, Virgin Blue’s entry in the industry, the emergence of Australian air lines and further the Jetconnect and the Freedom Air. This industry can be mainly categorized in three broad classifications:

1. Domestic airlines: These airlines are purely domestic i. e. they have no international flights and serve only the domestic passengers. They are specialized carriers that are able to make profits relying on local business travelers and domestic tourists. 2. Regional airlines: With domestic flights already part of the package, these airlines are one step ahead of domestic airlines in that they offer international flights but only to a limited bunch of cities in the same region.

Virgin Blue, for instance, operates in Australia and its neighboring countries but does not yet offer a completely international destination menu. 3. International airlines: These airlines travel the globe, across different continents and are definitely the

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big fishes in the sea. Large airlines such as Emirates and Ryan Air have more than a hundred destinations on their list in almost all the continents on Earth.

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