Ansett Airlines has discontinued its internet-only discount fares into Tasmania and Canberra except the route of Canberra-Brisbane.

The routes affected are Sydney-Canberra, Sydney-Hobart, Melbourne-Canberra and Melbourne-Hobart.

All remaining Ansett 'Websaver' internet-only fares have been increased up to 10%.

This is not a good sign for competition, despite Virgin Blue's commitment to continue fare discounting yesterday. The routes that Ansett has withdrawn discount fares on are largely those which there is only competition with Qantas.

Our experience of competition suggests that Qantas may well withdraw internet-only fares on some or all of these routes.