Foreign carriers shut out of local routes

The Federal Government has cancelled the temporary arrangement that has allowed foreign airlines to carry domestic passengers on Australian sectors.

Foreign carriers will not be allowed to offer seats on domestic legs after December 31.

United Airlines has been offering $50 flights one-way between Sydney and Melbourne for the last month or so, filling up spare capacity on this leg of its international flights out of San Francisco.

United has sold tickets for travel in January that it will have to cancel. The airline has said it will organise alternative flights on domestic carriers for those passengers affected.

Australian Financial Review, p5 21/12/01