The global aviation industry has been in a period of constant change over the last five years. Canberra International Airport was severely affected by the collapse of Ansett and its regional subsidiaries Kendell Airlines and Air Facilities. This saw passenger traffic decline sharply, because capacity could not meet the demand. Recent capacity and frequency increases, expansion of new markets due to lower fares and new routes, as well as the robust growth of the ACT and region economy, has led to improved prospects for the growth of aviation services into Canberra. Much like the experience in the United States and in Europe, evidence suggests aviation is undergoing a structural change due to the impact of low cost fares because people are travelling by air on holiday where they would otherwise have driven.