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The approval of The Australian National Airlines Act in the 1945 created a government-owned airline and it prevents “airline competition, which would have occurred without some government intervention” (Howe, 1986: 18). Under this legislation, only the government owned carrier (TAA, Trans Australia Airline) and another operator were allowed to operate in the domestic market (ATI, Ansett Transport Industry Ltd), and the entry into the market by any new competitor is effectively prohibited by the State (Kirby et al, 1984)...
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Until the deregulation in the 1990s, this industry in Australia was characterized by high charges and inefficiency in management, both in the TAA and ATI. As Kirby (1984) affirmed, there was no incentive for those companies to compete in satisfying the market when no other players could have had any chances to share demand...
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