New route? New airline? Email us! Let's all celebrate your new routes. Please send photos and route details to James Davis, anna.aero's Assistant Editor. Contact James.

Australia: Australian domestic air traffic growth increasing at expense of load factors

The start of domestic operations by Tiger Airways from its Melbourne base on 23 November 2007 helped give new impetus to Australia’s domestic market growth.

Chart: Australian domestic air traffic growth
Source: BITRE
Image: Tiger Airways began services from Melbourne to the Sunshine Coast
Tiger Airways began services from Melbourne to the Sunshine Coast (home of Australia Zoo) last November.

Although February’s growth was aided by an extra day, in the first quarter of 2008 passenger demand was up around 10%. However, this surge in demand has come at the expense of load factors. Since Tiger entered the market monthly load factors in the domestic market have fallen slightly (by less than one percentage point) but in April load factors were down 2.6 percentage points to 77.7%.

Tiger maintains 3% of domestic capacity: drops Newcastle

Latest schedule data shows that Tiger Airways, which now operates 12 domestic routes from its Melbourne base, has maintained its 3% share of domestic capacity. However, it has recently announced plans to pull off the Newcastle route from 11 August after rival Jetstar decided to increase frequencies from two to three daily flights. Tiger only began operating on the route in mid-January. The removed capacity will be re-allocated to the existing Adelaide and Canberra routes, enabling Adelaide to be served thrice daily.

Chart: Australian domestic market
Source: OAG Max Online

Qantas still operates the most domestic airport-pairs with 92, followed by Virgin Blue (51) and Jetstar (45). Regional Express (33) and Skywest (24) both operate more routes than Tiger but with significantly smaller aircraft.

Image: Victorian Minister for Industry and Trade Theo Theophanous opens T4, Tiger Airways’ terminal at Melbourne Airport
Victorian Minister for Industry and Trade Theo Theophanous (centre) cuts the ribbon to open T4, Tiger Airways’ terminal at Melbourne Airport last October.

Comments

Comments are closed