Australian Airline Industry: A Duopoly Market Structure Analysis

Running head: PRINCIPLES OF ECONOMICS
Principles of Economics
Name of the student:
Name of the University:
Author note

1PRINCIPLES OF ECONOMICS
Table of Contents
Introduction:...............................................................................................................................3
Information of the chosen organization:....................................................................................3
Structure of the selected industry:..............................................................................................4
Economic interpretation of the selected industry:......................................................................5
Characteristics of the chosen industry:......................................................................................6
Number of sellers and buyers:................................................................................................6
Entry to and exit conditions from the market:.......................................................................6
Short run versus long run profits:...........................................................................................6
Price determination:...............................................................................................................7
Non price competition:...........................................................................................................7
Conclusion:................................................................................................................................7
Reference:..................................................................................................................................8

2PRINCIPLES OF ECONOMICS
Introduction:
Australian economy is one of the fastest growing economy in the western nations that
has been growing through its 27th consecutive growth stage (McCombie & Thirlwall, 2016).
With the aim to achieve sustainability Australian economy is cannon balling the annual
growth rate with the rapid production in the mining industry as well as substantial
improvement in the GDP share of the service sector (Byrne, Fernald & Reinsdorf, 2016). In
addition to this, it has been found that the economy is having high flow of foreign tourists to
the Australia that has been making it one of the sustainable economy in the world. Well, in
this regard it is important to mention that various
Australian airline industry plays a significant role in the growth of the country’s GDP.
Combining all the airline industries, it can be seen that they represent 1.2% of country’s GDP
and has produced more than 35,000 jobs in the economy (Zhang et al. 2018).
Considering the importance of the airline industry in the Australian economy, this
report is aimed to study the airline market with special focus to the Qantas airline and find
out the insight details regarding the market structure of the same. In addition to this, the
report is aimed to provide economic interpretation of the market structure and provide
contrast to the characteristics of the chosen industry.
Information of the chosen organization:
C and it is the third oldest airline in the world. Introduced back in 1920, it was
initially focused to provide air service to the domestic passengers and during 1935 it went for
its first international flight (Shaffner, Mills & Helms, 2017). According to the statistics of
2014, Qantas is accounted for 65% of providing service to 65% of domestic customers and
when it comes to the international customers then it enjoys a healthy share of 14.9% out of
total out going passengers (Domestic aviation activity, 2018). It has at least 11 subsidiaries,
which are focused on the trunk roads to gain higher amount of profit and deter the new