Originally Posted by
Icarus2001
Can someone with some real aviation law knowledge explain to me how a state government can legislate aviation routes within their state given that the Australian constitution specifically says that aviation regulation is under the sole authority of the federal government.
Giving a monopoly "licence" to one operator I believe is not legally defendable.
The constitution gives the federal government exclusive responsibility for interstate trade. Intrastate trade (exclusively within a state, things like intrastate air routes) are regulated by the state.