Melbourne, Australia (PRWEB) May 11, 2014
The International Airlines industry's flight to success over the five years through 2013-14 began with some turbulence. The economic downturn of 2008-09 wiped away much of the growth achieved by the industry in the previous two years as industry revenue fell. IBISWorld industry analyst Ryan Lin states, “Since then, revenue has been on the ascent due to solid growth in passenger numbers and record low prices from the growth of low-cost carriers.” Industry revenue is expected to grow at a compound annual rate of 5.1% over the five years through 2013-14, to reach $16.5 billion. Major airlines have participated in price wars since the beginning of 2008-09 to attract higher passenger numbers. This competitive behaviour continued into 2009-10, albeit at a smaller scale. Even though the world experienced a downturn in those two years, Australia avoided a recession, as did China and other developing Asian nations. Industry revenue is forecast to grow by 3.1% in 2013-14, as passenger numbers continue to increase.
A number of airlines from different countries service the International Airlines industry in Australia. However, few enterprises have their headquarters in Australia. Qantas Airways Limited is headquartered in Australia and boasts the largest market share. Virgin Australia also offers international flights and has expanded its presence in the industry over the past five years. The industry is headed for another five-year period of revenue growth. According to Lin, “Increasingly favourable conditions, such as solid income growth in Australia and Asia, will result in increased demand for travel. However, continual downward pressure on airfares, a weaker Australian dollar and strong competition on a global scale will partly offset these favourable conditions.”
The International Airlines industry has medium level of market share concentration. Qantas is the largest company in the industry. Other major players are Virgin Australia and foreign enterprises including Singapore Airlines and Emirates. There are also a number of smaller airlines operating in certain regions of Australia only, operating scheduled flights to Pacific Islands or other surrounding countries in smaller aircraft. The level of concentration has fallen over the past five years. This indicates a growing level of competition in the industry and a mature market. There has been rising competition from low-cost airlines, specifically new entrants like Air Asia X and Scoot. These companies have outperformed the larger and more expensive airlines over the past five years, particularly during the economic downturn. For more information, visit IBISWorld’s International Airlines report in Australia industry page.
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IBISWorld industry Report Key Topics
The International Airlines industry provides air transportation of passengers or freight over regular routes and on regular schedules. These include any flights that either end or originate internationally. Airlines that provide scheduled domestic air transportation of mail on a contract basis are also included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.