Demand for low-cost airlines in Australia

The purpose of this study was analysis of low-cost airline demand in Australia. As part of this project, an econometric method was applied to develop a regression model for forecasting demand. The research hypothesis being that low-cost airline demand in Australia is based on the following variables: domestic airfares, price of other transport modes,population, disposable income and tourist numbers. It was found that demand for low-cost airlines is primarily a function of domestic airfare and population while tourist numbers and price of other transport modes did not have a significant influence.