Two Airlines Policy
Encyclopedia
The Australia
n Two Airlines Policy (or Two Airlines Agreement) was a policy of Australian Federal Governments from the late 1940s to the 1990s. Under the policy, only two airline
s were allowed to operate flights between state
capital city and major regional city airport
s. For most of the period of the policy, the "two airlines" were the privately-owned Ansett Airlines and the government-owned Trans Australia Airlines
. Though persisting for some decades, the policy finally fell into abeyance in the world-wide Airline deregulation
s of the 1990s.
and Second
Chifley
(Labor
) ministries established Trans Australia Airlines
in 1947, after passing legislation establishing TAA in 1945. TAA was initially intended to be a monopoly national carrier, subsuming all the routes flown by Australian National Airways
and any other non-government airlines. This was successfully challenged in two High Court
cases.
. The policy took practical effect when Ansett purchased 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 airline
s to operate flights between major cities in Australia.
's Ansett
, during the Seventh Menzies Ministry
of Sir Robert Menzies
. 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 .
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n Two Airlines Policy (or Two Airlines Agreement) was a policy of Australian Federal Governments from the late 1940s to the 1990s. Under the policy, only two airline
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
s were allowed to operate flights between state
States and territories of Australia
The Commonwealth of Australia is a union of six states and various territories. The Australian mainland is made up of five states and three territories, with the sixth state of Tasmania being made up of islands. In addition there are six island territories, known as external territories, and a...
capital city and major regional city airport
Airport
An airport is a location where aircraft such as fixed-wing aircraft, helicopters, and blimps take off and land. Aircraft may be stored or maintained at an airport...
s. For most of the period of the policy, the "two airlines" were the privately-owned Ansett Airlines and the government-owned Trans Australia Airlines
Trans Australia Airlines
Trans Australia Airlines or TAA, was one of the two major Australian domestic airlines between its inception in 1946 and its sale to Qantas in May 1996. During that period TAA played a major part in the development of the Australian air transport industry...
. Though persisting for some decades, the policy finally fell into abeyance in the world-wide Airline deregulation
Airline deregulation
Airline deregulation is the process of removing entry and price restrictions on airlines affecting, in particular, the carriers permitted to serve specific routes. In the United States, the term usually applies to the Airline Deregulation Act of 1978...
s of the 1990s.
Beginnings
The FirstFirst Chifley Ministry
The First Chifley Ministry was the thirty-third Australian Commonwealth ministry, and held office from 13 July 1945 to 1 November 1946.Australian Labor Party*Rt Hon Ben Chifley, MP: Prime Minister, Treasurer...
and Second
Second Chifley Ministry
The Second Chifley Ministry was the thirty-fourth Australian Commonwealth ministry, and held office from 1 November 1946 to 19 December 1949.Australian Labor Party*Rt Hon Ben Chifley, MP: Prime Minister and Treasurer*Hon Dr H.V...
Chifley
Chifley
Chifley can refer to several things:* Ben Chifley, Prime Minister of Australia from 1945 to 1949* Chifley, Australian Capital Territory, a suburb of Canberra named after him* Chifley, New South Wales is a suburb of Sydney...
(Labor
Australian Labor Party
The Australian Labor Party is an Australian political party. It has been the governing party of the Commonwealth of Australia since the 2007 federal election. Julia Gillard is the party's federal parliamentary leader and Prime Minister of Australia...
) ministries established Trans Australia Airlines
Trans Australia Airlines
Trans Australia Airlines or TAA, was one of the two major Australian domestic airlines between its inception in 1946 and its sale to Qantas in May 1996. During that period TAA played a major part in the development of the Australian air transport industry...
in 1947, after passing legislation establishing TAA in 1945. TAA was initially intended to be a monopoly national carrier, subsuming all the routes flown by Australian National Airways
Australian National Airways
Australian National Airways was Australia's predominant carrier from the mid-1930s to the early 1950s.-The Holyman Airways Period:On 19 March 1932 Flinders Island Airways began a regular aerial service using the Desoutter Mk.II VH-UEE Miss Launceston between Launceston, Tasmania and Flinders...
and any other non-government airlines. This was successfully challenged in two High Court
High Court of Australia
The High Court of Australia is the supreme court in the Australian court hierarchy and the final court of appeal in Australia. It has both original and appellate jurisdiction, has the power of judicial review over laws passed by the Parliament of Australia and the parliaments of the States, and...
cases.
Formal establishment
The Two Airlines Policy was formally established in 1952 by the Fifth Menzies MinistryFifth Menzies Ministry
The Fifth Menzies Ministry was the thirty-sixth Australian Commonwealth ministry, and ran from 11 May 1951 to 9 July 1954.Liberal Party of Australia–Australian Country Party Coalition*Rt Hon Robert Menzies, KC MP: Prime Minister...
. The policy took practical effect when Ansett purchased 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 airline
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
s to operate flights between major cities in Australia.
Continuation of the "Duopoly"
The failing Australian National Airways was taken over in 1957 by Sir Reg AnsettReg Ansett
Sir Reginald Myles "Reg" Ansett KBE was an Australian businessman and aviator; best known for founding Ansett Transport Industries Limited, which owned one of Australia's two leading domestic airlines between 1957 and 2001...
's Ansett
Ansett Australia
Ansett Australia, Ansett, Ansett Airlines of Australia, or ANSETT-ANA as it was commonly known in earlier years, was a major Australian airline group, based in Melbourne. The airlines flew domestically within Australia and to destinations in Asia during its operation in 1996...
, during the Seventh Menzies Ministry
Seventh Menzies Ministry
The Seventh Menzies Ministry was the thirty-eighth Australian Commonwealth ministry, and ran from 11 January 1956 to 10 December 1958.Liberal Party of Australia–Australian Country Party Coalition-Cabinet:*Rt Hon Robert Menzies, QC MP: Prime Minister...
of Sir Robert Menzies
Robert Menzies
Sir Robert Gordon Menzies, , Australian politician, was the 12th and longest-serving Prime Minister of Australia....
. Subsequent governments continued to allow TAA and Ansett to hold a duopoly
Duopoly
A true duopoly is a specific type of oligopoly where only two producers exist in one market. In reality, this definition is generally used where only two firms have dominant control over a market...
over domestic flights in Australia for almost four decades until the deregulation of the industry .