Qantas could be threatened with the forced sell-off of its low-cost Jetstar brand under a proposal from the Coalition that it says will lower airfares, but it is also likely to increase tensions between Canberra and the business community.

Coalition transport spokeswoman Bridget McKenzie has called for the government to be handed forced divestiture powers in the aviation industry. The populist push to further regulate another high-profile industry ahead of a federal election expected in the first half of next year opens up a new front in the ongoing stoush between the country’s largest companies and the Opposition.

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