Correct - Air NZ could fly domestically in Aus...You're right and FIRB approval is no problem since it's majority overseas owned already. My understanding (can anyone confirm?) is that under CER or other Aus/NZ deals AirNZ could fly domestically in Oz anyway - I've often wondered why they don't. I'm committed to QF as a life member of QC, but it's vital that they have effective competition to control prices. Don't want to bad-mouth Borghetti, but I've been surprised at how much praise he gets for really easy things like spending your owners' money on lounges and fancy seats; surely even the Arab owners must want the company to do the hard yards to make a profit someday. As for private equity investors, the basic rule of investing is never buy shares in an airline, they never make a profit over more than a very short term, unless they have a monopoly.
Much like Eastern Australian Airways for Jetstar is operating the Dash-8s in NZ.
But there is nothing stopping any airline setting up a 100% owned Australian sub, and flying domestically within Australia.
Obviously needs Australian AOC and employing staff under local rules.
- indeed Tiger was initially 100% owned by Tiger Singapore (that has changed)