Two Airlines Policy
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The Two Airlines Policy (or Two Airlines Agreement) was a de facto[citation needed] and de jure[citation needed]policy of Australian Federal Governments from the late 1940s to the 1990s. The Two Airlines Policy was established in 1952 by the Menzies Government. [1] The policy took effect when Ansett merged with the failing ANA airline in 1957, resulting in it being the only competitor for the government-owned TAA. While smaller regional airlines were free to operate flights between regional airports and between cities and regional centres, the policy allowed only two airlines to operate flights between major cities in Australia[citation needed].
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[edit] Beginnings
The Chifley Labour government established Trans Australia Airlines in 1947[citation needed], and it was initially intended to be a monopoly national carrier, subsuming all the routes flown by Australian National Airways[citation needed]. This was successfully challenged in a High Court case[citation needed].
[edit] The "Duopoly"
Early in the federal Liberal government of Sir Robert Menzies, Australian National Airways had been taken over by Sir Reg Ansett's Ansett[citation needed]. Subsequent governments continued to allow TAA and Ansett to hold a duopoly over domestic flights in Australia for almost four decades until the deregulation of the industry[citation needed].
[edit] De Facto "status quo ante"
At present, only two airlines - Virgin Blue and Qantas (which absorbed TAA in 1992)[citation needed] - fly between major cities in Australia.[citation needed]
