The Two Airlines Policy (or Two Airlines Agreement) was a policy of the Government of Australia from the late 1940s to the 1990s. Under the policy, only two airlines were allowed to operate flights between state capital cities and between capitals and nominated regional centres. The Two Airlines Policy was a legal barrier to new entrants to the Australian aviation market. It restricted intercapital services to the two major domestic carriers. This anti-competitive arrangement ensured that they carried approximately the same number of passengers, charged the same fares and had similar fleet sizes and equipment.
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 with airline deregulation in Australia in 1990.
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