Australian Airline Industry

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The Australian airline industry

2. The External Environment

2.1.1 Demographic Changes

Momentarily, there is a growing, but also aging population in Australia. The Generation Y represents about 4.5 million of the 20 million people living in Australia. This group is reported to be setting and influencing spending pattern trends (Ben Wyld, 2005).

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2.1.2 Socio-Cultural Forces
Socio-culturally speaking, we can see an ongoing trend for greater environmental concerns. Especially people with a high awareness for global warming try to travel environmental friendly and are looking for suitable travelling substitutes. Another trend is reflected by an increase in services to leisure destinations (Aviation Statistics 2005-06) to fulfil the needs of the fun and consuming lifestyle of the new generation.

Moreover, in today’s fast-paced global business environment, timetables took precedence over service and for a discerning business traveller, scheduling is critical (Jamie Freed, 16th April 2005).

2.1.3 Political/Legal
There is a deregulation trend in the airline industry, but it is still regulated heavily and has gone through considerable internal changes over the last 10 years.

2.1.4 Technological
The internet and rapid technological developments have a high influence on the airline industry. New technologies like online booking, flight software and better planes provide the possibility to reduce costs and satisfy customers. This is an important component in operating efficiently and keeping up with the game by minimizing costs.

2.1.5 Economic
The Australian economy is remaining strong over the last years, the unemployment rate is actually down to 4.5%, the interest rates have been stable at about 5-6% and between the years 1996 and 2005 the GDP was 3.2%7, which is quite good (Australian Bureau of Statistics).

2.1.6 Global Factors and Other Issues
The intrastate sector has been subdued by the collateral effects of September 11th, the Iraq War...
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