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Almost half of Australians in a new poll have said they supported a break-up of Qantas and Jetstar.
The Freshwater poll for The Australian Financial Review, which surveyed 1,061 voters, showed around 48 per cent agreed Qantas and Jetstar should be broken up “in order to increase competition between airlines”, with 24 per cent opposed and 29 per cent unsure.
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It comes after BITRE data found a spike in airfares between July and September following Rex’s axing of domestic jet services.
The poll also found an overwhelming 80 per cent believed airfares were too expensive and the Government “needs to do more to ensure consumers are getting a fair price”, with 76 per cent agreeing there should be more competition in the aviation sector. Qantas is still trusted narrowly over “other non-Australian airlines” by 43 per cent to 39 per cent.
Opposition transport spokesperson Bridget McKenzie, who this month floated the idea of handing the government powers to force Qantas to divest Jetstar – an idea swiftly hosed down by Labor – said the poll showed clear support for swift action on lowering airfares.
“It is no surprise that Australians overwhelmingly recognise that airfares are expensive in a cost of living crunch. Air travel is not a luxury, it is a necessity for millions of Australians,” she told the Financial Review.
“The Sydney-Melbourne route is one of the busiest in the world, but if you compare flight costs on comparable routes in the US or Europe, you’ll find the air tickets are cheaper and services more reliable.”
In response to the poll and Senator McKenzie’s comments, Transport Minister Catherine King said the Government is “undertaking the most significant reforms to aviation in Australia in over a decade to boost competition, protect consumers and support growth in the workforce”.
“We announced reforms to the slots system at Sydney Airport in February to benefit new entrants and stamp out anticompetitive behaviour, we are introducing a show cause requirement on airlines for cancelled flights, and we are supporting more capacity in international flights through growth in our bilateral agreements,” she said.
“We are also building Western Sydney International Airport, which will bring more choice for consumers and airlines.
“The Coalition sat on their hands for nearly a decade, failing to act on aviation competition. Despite Senator McKenzie’s misinformation, fares today are well down from their 2022 peaks, are lower than pre-COVID, and are in line with long-term trends.”
Qantas earlier this month said it “welcomed competition” in the domestic market.
“Since Jetstar launched 20 years ago it’s carried 400 million customers with more than half of them travelling for less than $100,” a spokesperson said.
“Over the past year, domestic and international airfares have continued to trend down adjusted for inflation.
“The ACCC has been actively monitoring the aviation industry for the past four years and has made no findings of anticompetitive behaviour.”
