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.
Does this law really exist in EU? It is possible to buy tickets on Aeroflot connecting in SVO between two EU destinations, e.g. PRG - TLL with a single SU fare covering the whole trip, i.e. an intra-EU trip served by a non-EU airline by a connection outside the EU.