The spatial effects of domestic aviation deregulation: a comparative study of Australian and Brazilian seat capacity, 1986–2010

Abstract

The aim of this paper is to examine the link between the volatility of aviation policy and the spatial evolution of air transport supply. We focus on the domestic aviation sector of two comparative cases - Australia and Brazil - each of which represents a large continental country with contrasting levels of policy volatility. We apply generalized entropy indices to measure the changing spatiality of air transport seat capacity over a 25-year period (1986-2010). We find evidence of a correlation between air transport policy volatility and spatiality. Using the generalized entropy indices, the study finds that the spatial evolution of Brazilian air transport capacity is governed by variations among very large airports, which are often subject to policy and regulatory intervention. In contrast, the distributional pattern of Australian airports was relatively stable and characterized by gradual and consolidative changes.