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Australian resource flying to further expand to east coast, possibly internationally in medium-term

Analysis

As Australia's domestic market shows signs of slowdown, increasingly presenting itself as an opportunity for mainline Australian carriers is flying for the booming resource sector. The resource industry flying has been heavily concentrated in Perth, where charter carrier with small aircraft sub-737/A320 size can effectively reach most of the state of Western Australia, where the majority of resource work occurs, although increasing amounts are in Queensland too.

But as Perth becomes saturated - from peak aircraft movements, housing availability and skilled labour - resource companies will be increasingly pulling from the country's more populous east coast. These distances place restrictions on existing charter carriers, creating the opportunity for Qantas and Virgin Australia to fill demand just as their traditional regular public transport markets are weakening. In a second phase of growth, resource flying could even be extended to Southeast Asia to tap that region's skilled labour pool, if Australian immigration policies allow.

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