Tim Tams, I am only half way through my law degree so I will be no help at all
The Federal Govt has the sole power to regulate aviation (and railways etc) under s51 parts xxxii - xxxiv. I think Kellie has it right also that the often-refferred-to external affairs power (Part V, s51 xxix) is the catch-all that validates the Paris convention (1920) and the Chicago convention (1946) as binding upon the government of the Commonwealth.
This does not prevent the states from passing laws that impact on Aviation - for example, workers comp, land taxes and equal opportunity in NSW, and of course the Air Transport Council in NSW which regulates RPT routes
wholly within NSW with less than 50,000 pax per annum.
Note that the NSW Air Transport Council can't regulate
interstate air transport in & out of NSW - that would be unconstitutional!
I think you will find that State govts have environmental planning and control powers, giving them the right to legislate to control noise pollution and visual pollution. What is Melbourne's equivalent of the "Balmain basket-weavers" and he one-legged lesbian Surfboard maker's guild?
