It's still possible to fly AN and QF jet aircraft between Sydney and Canberra. It's just that most of the flights are operated by Kendell (for AN) or Eastern Australia Airlines (for QF) in propeller aircaft.
And it's SAAB 340 aircaft, not SAAB 2000 (my mistake) that Kendell use. Eastern Australian Airlines operate Dash-8 aircraft. I took one of those flights too. A snack service was provided from a plastic box. It was OK.
Kendell's service was way way better than Eastern Australia's. If the situation is so political, why didn't Eastern Australia improve their service too?