Date of this Version


Document Type

Discussion Paper

Publication Details

Evan J. Douglas (1993) Airline Competition and Strategy in Australia

School of Business Discussion Paper ; No. 41, Jun. 1993

© Copyright Evan J. Douglas and the School of Business, Bond University



In this paper the short history of airline deregulation in Australian is considered. The pre-deregulation moves by the incumbents to strengthen their position are outlined, and the year of price competition occasioned by the entry of Compass (mark I) is discussed in some detail, with a brief account of the six months life of Compass (mark II). The failure of Compass to successfully enter the market is considered in terms of the actions and inactions of the Government, the alleged strategic errors made by Compass management, and the 'hardball' competition of the incumbent airlines. I then conclude that it was inevitable that Compass would die of 'natural' causes.