Comment on some appropriate actions the Australian Federal Government could take to protect the Australian airline industry from the effects discussed in Question 2. (You may like to do some independent research to help you answer this question.) Show the effect these actions may have on the diagram you drew for Questions 1 and 2. (4 marks)

( FOR YOUR REFERENCE : Question 1

Identify the market structure the airline industry in Australia follows. Make sure you justify your choice of market structure using all of the market characteristics used to classify markets. Using your own independent research, provide some brief comments on the market participants (Qantas and Virgin Australia) and some fun/interesting facts about the industry. Draw a diagram for this industry if all market participants act together to maximise profits. (6 marks)

Question 2

The global airline industry was severely affected by the terrorist attacks of September 11, 2001. Using your own independent research, explain the impact these attacks had on the Australian airline industry and, in particular, on Qantas. (Make sure you use reputable sources and reference your sources.) Show these effects on the diagram you drew in Question 1. (4 marks))