Air New Zealand failed in its attempt to gain access to Australia's domestic airline system on a quid pro quo for Ansett gaining access to its homeland.

Airways Liberalisation to Replace Two Airline Policy

Full-Blooded Deregulation To Replace Two Airline Policy

October 7, 1987 will go down in Australian aviation history as the day on which the federal government officially moved to terminate the long lived Two Airline Policy.

Senator Evans’ announcement was most noteworthy for the lack of surprise that it aroused within the industry. Full deregulation was what was inevitably coming and it seemed almost a fait accompli since even Ansett had long ago agreed that, other than keeping the TAP, deregulation would be the best and simplest option.

Gone is the two airline system. Gone are capacity controls which served only to promote parallel scheduling, low availability of discount fares and little innovative marketing or route servicing. Gone also is the odious need to obtain government approval to import large passenger aircraft. In other words, the market is open to whoever wishes to play the game.

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