Originally Posted by
joejones
It's basically a global thing. The only place worldwide where you see large-scale passenger cabotage is among the EU countries -- EU carriers are allowed to operate domestic routes in other EU countries thanks to the common market. There are a few other country pairs where it's technically allowed but not really utilized, such as between Australia and New Zealand.
any NZ airline can fly domestically in Australia & sell domestic only tickets & vice versa. It's called SAM (single aviation market).
In fact, it's much easier for a NZ airline to fly domestically in Australia than an Australian airline. Apparently due to fact that NZ airlines fly by NZCAA rules, whereas Australian airlines fly by CASA(Australia) rules, which are much more demanding.