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ABC news reported on 26 July 2016 that the South Australian Government announced that a deal was reached with a Chinese airline that will ensure the first direct flights between Adelaide and mainland China.

In the light of the above existing airlines will face fiercer competition.

Source:

ABC News 2016, Deal for direct flights between Adelaide and China to be signed this week, viewed 30 August 2016, .

Critically discuss whether airline companies currently flying to and from Adelaide to China (but through INDIRECT flights) should change their pricing policies in order to address this change or not. Also discuss whether, in your opinion, the airlines currently flying to and from Adelaide should take any other courses of action in order to protect their business.

Your target audience is the board of directors of one of the main airlines that are currently flying between Adelaide and China (via INDIRECT flights).

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