Coalition Proposes Qantas Jetstar Divestment Plan

Nationals Leader David Littleproud has distanced himself from a proposal by Shadow Transport Minister Bridget McKenzie to threaten Qantas and Jetstar with break-up powers to combat anti-competitive practices in the aviation sector. McKenzie argues that such divestiture powers are necessary to enhance competition and improve service quality for consumers, while Qantas has responded that the ACCC has found no evidence of anti-competitive behavior in the industry. Despite the call for regulatory changes, Littleproud emphasized a more cautious approach, aiming to first evaluate competition policies without rushing into drastic measures. The federal government has recently outlined its aviation policy, proposing the establishment of an ombudsman to oversee customer service improvements, amidst criticisms from McKenzie regarding the lack of concrete measures to tackle rising airfare costs. Experts remain divided on the necessity and efficacy of divestiture in the airline industry, particularly given the complexities surrounding market competition and consumer benefits. The proposal raises concerns about potential overreach and its implications for both the aviation industry and broader economic policy.