A new proposal from the Coalition could force Qantas to sell off its low-cost brand, Jetstar.
Coalition transport spokeswoman Bridget McKenzie wrote in The Australian Financial Review the government should be handed forced divestiture powers in the aviation industry.
It follows similar populist calls targeting supermarkets and other large retail sectors.
Opposition Leader Peter Dutton says he endorses the proposals.
McKenzie says Treasurer Jim Chalmers will have “failed another reform opportunity unless he deals with divestiture as a measure to ensure consumers’ interests are protected, and not at the mercy of the entrenched duopoly”.
“Australians want an airline sector where you have genuine choice, where your plane takes off and lands on time, and your bags arrive at your destination with you,” McKenzie said.
“[The government’s] competition review will be a failure if it does not address the role of divestiture in the Australian aviation sector.”
