Australia: Domestic growth slowing

After a strong start to the year, Australia’s domestic market growth has fallen in each of the last three months and in June fell below 6% for the first time since last September.

Chart: Australian Domestic Air Traffic Growth
Source: BTRE

Analysis of the capacity provided by Australia’s leading airlines on each of the Top 10 domestic routes reveals how Qantas is still the market leader in most markets, though on routes to the Gold Coast it uses its lower-cost subsidiary JetStar.

Chart: Australian Top 10 Domestic Routes
Source: OAG Max Online for w/c 20 Aug 07

JetStar operates from Melbourne’s Avalon airport (AVV) and so does not appear on the Melbourne routes listed above, which focus on Tullamarine airport (MEL). In terms of the total Australian domestic market Qantas operates twice as many flights as Virgin Blue.

Airline Frequency Share Capacity Share
Qantas 41.2% 49.7%
Virgin Blue 20.1% 27.1%
Jetstar 9.3% 15.7%
Regional Express 12.5% 3.9%
All other airlines 16.9% 3.6%
Source: OAG Max Online for w/c 20 August 07

Apart from the ‘big 3′, there are a host of small regional carriers which generate nearly 30% of weekly flights but are responsible for just 7.5% of seats.


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