ABSTRACT
The low-cost carriers (LCCs) in Australia and New Zealand are another example of the worldwide trend towards airlines offering heavily discounted fares. The local airline market has initially been dominated by the national airlines Qantas and Air New Zealand for many years. The former duopoly of Qantas and Air New Zealand was stirred up by the emergence of LCCs, significantly lowering fares. In a liberalized and more competitive environment, the new LCCs achieved significant market shares of the region's aviation industry in just a few years. Most LCCs in Australia and New Zealand started operations with leased and owned secondhand aircraft. In some cases they commenced operations with aircraft of their respective parent airline's fleet. New Zealand and Australia do not have many secondary airports, which makes competition with the traditional full service airlines (FSAs) more difficult, as LCCs have to utilize the same primary airports.
