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Airline industries throughout the world have been shaped by various government interventions. Traditionally, airline industries were one of the most highly regulated industries. The last twenty years has seen major changes occur within the industry through the introduction of deregulation, the removal of government regulations from most airline practices. The majority of industrialized countries have passed legislation outlining the involvement or lack of government intervention. This paper focuses on the local Australian industry, the United States and European markets and to a lesser extent, the Asian airline industry. The regulations on the industry, as imposed by external government agents, sparked significant economic debate. Questions such as 'is there enough competition among airlines to ensure passengers do not pay excessive fares?' and 'can an unregulated airline industry be profitable?' and 'is air travel safe?' had been at the forefront of any debate over the airline industry leading up to deregulation. In satisfying economic...

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