Please note: This draft report is for research purposes only. For final outcomes of this inquiry refer to the inquiry report.

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• Preliminaries
  • Cover, Copyright, Terms of reference, Contents, and Abbreviations and explanations
• Overview
• Draft recommendations
• Chapter 1 Introduction
  • 1.1 This inquiry
  • 1.2 The Productivity Commission's approach
  • 1.3 This report
• Chapter 2 The airline industry
  • 2.1 Australian airlines in the global airline industry
  • 2.2 Growth and distribution of world air traffic
  • 2.3 Growth in Australia's international air transport industry
  • 2.4 Demand characteristics of air travel
  • 2.5 Airline costs
  • 2.6 Airline profitability
• Chapter 3 Regulation of international air services
  • 3.1 History of international air services regulation
  • 3.2 International trends towards liberalisation
  • 3.3 Recent changes to Australia's aviation regulation
• Chapter 4 Australia's international aviation policy
  • 4.1 Policy objectives
  • 4.2 Economy wide approach
  • 4.3 Responding to market demand
  • 4.4 Balance of benefits
• Chapter 5 Economic effects on airlines, users and the economy
  • 5.1 Regulatory restrictions on airlines
  • 5.2 Effects on airline costs
  • 5.3 Effects on airline revenues
  • 5.4 Competition among airlines
  • 5.5 Effects on passenger airfares and services
  • 5.6 Effects on users of air freight
  • 5.7 Regional effects
  • 5.8 Economy wide effects
• Chapter 6 Capacity allocation and the International Air Services Commission
  • 6.1 Multiple designation in Australia
  • 6.2 Has multiple designation and the IASC provided a net benefit?
  • 6.3 Alternative allocation approaches
  • 6.4 The International Air Services Commission Act
  • 6.5 The policy statement of the Minister for Transport and Regional Development
  • 6.6 Relationship with the ACCC
  • 6.7 The Common Aviation Market
  • 6.8 Conclusion
• Chapter 7 Access to airports
  • 7.1 Australia's international airports
  • 7.2 Existing operational constraints on airport access
  • 7.3 Providing access to airports
  • 7.4 Promoting competition in on-airport services
  • 7.5 Conclusions
• Chapter 8 Towards further liberalisation
  • 8.1 The liberalisation agenda
  • 8.2 International production and trade in air services
  • 8.3 Designation of airlines
  • 8.4 Unilateral reform
  • 8.5 Bilateral liberalisation
  • 8.6 Plurilateral open club
  • 8.7 Multilateral liberalisation
  • 8.8 The Australia - New Zealand Single Aviation Market
  • 8.9 The Commission's preferred approach
  • 8.10 Competition principles legislative review findings
• Appendices
  • A Conduct of the inquiry
  • B Competition principles agreement
  • C The Australian international air services market
  • D Australia's international trade agreements covering air services
  • E Australia's international air services arrangements
  • F Impact of liberalised international air services agreements
• References
• TABLE
  • Table E1 Capacity negotiated and utilised under Australia's Air Service Agreements as at 1 February 1998