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International Air Services

Public inquiry

This public inquiry has concluded. The inquiry report was released by the Commonwealth Government on 3 June 1999.

The inquiry was referred by the Treasurer to the Industry Commission in December 1997. With the passage of the Productivity Commission Act 1998 (and the abolition of the Industry Commission), this inquiry was completed by the Productivity Commission.

The Commission was asked to report on the arrangements for negotiating entitlements under air services agreements and the process of allocating capacity entitlements to Australian carriers. The Commission was also asked to report on a range of related issues including:

  • effects of the current bilateral system of international air service agreements on competition, both in the global market and on Australia's existing and potential aviation markets
  • whether the International Air Services Commission allocation process provides net benefits to Australian's existing and potential aviation markets
  • impacts of the current arrangements on tourism, consumers, air freight and the aviation industry
  • importance of availability of airport infrastructure to negotiations in the trade of air services
  • options for improving current arrangements, both within the bilateral system and outside the bilateral system.

Further information