The Australian government may allow foreign airlines to operate domestic routes, reports the Wall Street Journal.
The ruling Conservative government is considering allowing foreign airlines access to towns in northern Australia, including tourist destinations such as Cairns and Broome, reported the Wall Street Journal.
When contacted by CNBC, the Minister for Infrastructure and Regional Development Warren Truss's office declined to comment.
The major cities, such as Sydney, Melbourne, Briusbane and Perth are not part of the plan, according the WSJ report.
Australia currently has two major airlines operating domestic routes, Qantas and Virgin Australia.