by the Two Airlines Policy, became the first "third" carrier operating between Sydney and Canberra. Between March 1977 and 1990 it operated services to Norfolk Island. In 1982 former Ansett and Air Niugini executive Bryan Grey, in partnership with former Citicorp Australia merchant banking executive Duke Minks, formed East-West Development Pty Ltd with the specific purpose to acquire East-West Airlines. With a loan of $ 8.5 million from the Nauru Phosphate Royalties Trust they purchased east–west in a share buy-out. The take over was deemed controversial, as discussions queried how far the involvement of Nauruan capital constituted a quasi foreign takeover. In the following years east–west competed vigorously with major airlines Ansett and Trans Australia Airlines on inter-capital routes. The Australian aviation industry was highly regulated at the time under the Two Airlines Policy, which prevented east–west from flying directly between major capital cities, so it instead offered services between major cities via regional centres. Routes included Melbourne to Sydney via Albury and Sydney to Brisbane via Newcastle and Coolangatta, sometimes making touch-and-go landings at intermediate locations. East-West primarily flew Fokker F27 Friendship turboprops and Fokker F28 Fellowship jets. In June 1983 East-West sold return tickets between Sydney and Melbourne via Albury, which took about two hours 45 minutes, for $120, which was about half of the standard fare of $248 for direct flights by the duopoly carriers taking one hour 15 minutes. However, Ansett and Trans Australia Airlines also offered discounted fares down to around $140. According to Brian Grey the service attracted about 4,000 customers per month. In 1985 a Boeing 737 was ordered. Because of its operating structure, east–west was able to significantly undercut other airlines. East West Airlines' aggressive "Third Airline" campaign forced the Federal Government to eventually scrap the Two Airline Policy, which had kept Australian air fares seemingly inflated for many years. Managing Director Bryan Grey along with marketing consultant John Williams created a massive nationwide media campaign and thus attracted many first-time flyers with what could be described as Australia's first truly discounted fares in a now deregulated arena. East-West set the scene for other airlines to enter the Australian domestic market years later. In December 1983 East-West was sold, for according to estimates, to Perth based Skywest Airlines owned by Ric Stowe. In particular the Government of New South Wales opposed the deal. Former owner Bryan Grey formed Compass Airlines in 1990