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The opposition has called for the government to be empowered to force Qantas to sell off Jetstar.
Writing in The Australian Financial Review, Nationals senator Bridget McKenzie suggested the government’s aviation policy is a “protection racket” for Qantas, and said the Treasurer should be able to force divestiture in the aviation sector.
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“It is my policy intent to be on the side of the customer, not any individual airline,” she wrote.
“Which is why I am calling upon federal Treasurer Jim Chalmers to include in his competition review a strong focus on aviation competition because of the failure of the aviation white paper to deal with this imperative.
“The Treasurer 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, and the proper role of divestiture.”
McKenzie quoted from a Treasury report into aviation competition, which said “Qantas raises prices when Jetstar, an affiliated airline, enters the market, suggesting the presence of Jetstar allows Qantas to exercise a greater degree of price discrimination”.
“The bilateral Senate inquiry report, which the Coalition initiated, released in October last year, explicitly recommended a review of anti-competitive behaviour in the aviation sector, including the examination of divestiture power and the reinstatement of ACCC monitoring of airfares,” she wrote.
“The aviation white paper sidestepped competition, and instead included an extraordinary 21 recommendations to undertake more reviews and consults.”
Speaking on Seven’s Sunrise on Monday morning, Environment Minister Tanya Plibersek dismissed the call for divestiture powers.
“Break up the supermarkets, break up the airlines. What we have to do with the airlines is make sure that [there are] take-off and landing slots [so that] there’s more competition there,” she said.
The federal government this year decided against changing the “80/20 rule”, which allows airlines to keep a take-off slot at Sydney Airport indefinitely provided they operate it at least 80 per cent of the time.
Qantas says the Australian Competition and Consumer Commission (ACCC) has not made any findings of anti-competitive behaviour in the four years it has been actively monitoring the airline industry, and that real and nominal fares are trending down, with Qantas and Jetstar international fares adjusted for inflation both lower than last financial year.
In its most recent report, the consumer watchdog said Rex’s move to shrink its network by axing domestic flights after entering administration “may mean” prices would rise, despite Rex only holding a 5 per cent market share.
“Consumers generally enjoy lower airfares where there is more competition on a route,” said ACCC commissioner Anna Brakey.
Minister King’s office has been contacted for comment.
Wes
says:It’s astounding that Bridget McKenzie was part of the Morrison government whom, and specifically Morrison, treated Alan Joyce like the darling of the Coalition and ScoMo’s face never went a day without hanging out of the flight deck of a Qantas aircraft or standing around smiling with the former CEO.
Total hypocrisy.