Most countries do not permit aviation cabotage, and there are strict sanctions against it, for reasons of economic protectionism, national security, or public safety.
Indonesia implemented a cabotage policy in 2005 after previously allowing foreign-owned vessels to operate relatively freely within the country.
[6] In the EU, rights to cabotage in newly admitted member states (in particular, Greece, Spain and Portugal) were restricted;[7] but this introductory provision was abandoned after criticism in the light of the Paros ferry disaster.
In the United States, the Merchant Marine Act of 1920 (Jones Act) requires that all goods transported by water between U.S. ports be carried on ships that have been constructed in the United States and that fly the U.S. flag, are owned by U.S. citizens, and are crewed by U.S. citizens and U.S. permanent residents.
[11] Ryanair, easyJet, Vueling, Wizz Air, and Aer Lingus have bases and operate domestic services outside their home countries.
The Closer Economic Relations agreement allows Australian air carriers to fly domestically and internationally from New Zealand and vice versa.
This unusual regime is partly due to Chile's geographical need for air service, and partly to incentivize liberalization in other countries amid the international expansion of its flag carrier LATAM Chile, which now has major operations in many other Latin American countries.
For a short time in the late 1980s, Trans World Airlines also flew between then-West Germany and West Berlin.
[14] Reciprocal cabotage rights exist by treaty between New Zealand and Brunei, and between the People's Republic of China and Albania.
[18] In 2002, the United States fined Asiana Airlines for selling tickets from the mainland US to Guam and Saipan via Seoul.
For instance, Qantas operates service between New York and Los Angeles solely for use by international connecting passengers.