Leady, I don't think you are quite correct this time. Some states ceded power to the Commonwealth, others did not. West Australia didn't and I don't think Queensland or NSW did either.
That, by the way, is why Ansett had to run separate airlines in WA and NSW - because the state governments demanded it as a condition of operation of the interstate flights.
We had to occasionally tread some very fine lines to avoid state interference from time to time. The classic was when Fokker offered $1 million to upgrade Broome runways if we would buy the new Fokker instead of the BAE146 (the new Fokker was weight limited for Broome on hot days). We got that surpressed very fast before the State government heard about it or they would have dictated that we buy Fokkers again and taken the money.
We have had one or two stoushes in Victoria about aviation but they all revolve around commercial land use, quiet enjoyment of private property, etc., etc. there has never been any suggestion that Victoria can dictate what happens when you are airborne.
Lindsay Fox still lands his helicopter in his back yard at Portsea and no one can stop him. It was especially galling for one protester who now finds her house to always be on the approach path for Lindsays place.