Domestic Air Cargo Industry in Australia - Bureau of Infrastructure ...

Occasional Paper 87development of interstate trucking, the increasing influence offreight forwarders and improved rail and shipping services. From 1961to 1974 there was a return to steady growth with an average increaseof 8 per cent per annum. In the following six years the level oftraffic was erratic, with the result that there was little growth inthe market between 1974 and 1980. The upward trend resumed after 1980with an average compound growth rate of 4 per cent per annum, althoughthere was a slight decline in traffic in 1986.The level of air mail traffic has generally been less variable thanair freight. There was moderate growth in air mail between 1946 and1959, a large increase in 1960 and generally steady growth averagingalmost 7 per cent per annum between 1960 and 1973. This was followedby a 17 per cent decline in traffic between 1973 and 1976 due tofactors such as industrial action affecting the domestic airlines andincreases in postage rates (Department of Transport 1979b, 254) .3 Themarket subsequently resumed its upward trend with averageannualgrowth of around 7 per cent between 1976 and 1986.There have been significant differences in the patterns of growth ofair cargo and passenger traffic in the post-war period. The levels ofairline passenger traffic between 1946 and 1986 are illustrated inFigure 2.2. Passenger traffic grew more rapidly than air cargobetween 1956 and 1980 and there were also significant differences inthe patterns of growth after 1980. The level of passenger-kilometresreached a historical peak in 1981, decl ined by 6 per cent over thefollowing two years and then recovered strongly. In contrast, airlinecargo traffic grew steadily between 1980 and 1985 before decliningslightly in 1986.The air cargo market is also seasonal as a result of variations infactors such as the level of retail sales. Traffic normally falls inthe March quarter (Department of Aviation 1987c, 17).TRAFFIC PATTERNSThe domestic air cargo market is characterised by large imbalances intraffic. Several routes account for a substantial proportion of theair cargo moved in Australia and backloading is limited in many cases.Table 2.2 contains data on movements of freight and mail on domesticscheduled airline services by major routes over the five years to3. The exclusion of air mail to Papua New Guinea from the domesticfigures also contributed to the decline.8