A Rex Airlines plane at Sydney Airport. The federal government could throw the airline a lifeline if a potential buyer isn’t found. Source: AAP / Mick Tsikas

Aviation plays ‘a critical role’, Albanese says

“There’s a reason for that, because aviation plays a critical role in communities.”

“It is absolutely critical for regional communities that Rex continues to operate and continues to provide those services.”

A ‘special case’

“But it’s also a special case because it’s servicing rural Australia. It’s not the same as, say, a big airline like Qantas or Virgin being publicly owned.”

Anthony Albanese said aviation plays a critical role in communities. Source: AAP / Mick Tsikas

Privatisation in Australia

Privatisation occurred in three main sectors — financial services, electricity and gas, and communication — with governments selling assets by offering equity to the public, and through trade sales.

Credit: SBS News

Fels said the original argument for privatisation was to increase competition. However, other factors can come into play, for example the ability of the private sector to run businesses more effectively and proceeds of sales being used to reduce government debt.

Here are some of the notable examples in Australia:

Qantas

Since the deregulation of airlines — where government restrictions on prices and routes were removed, and new airlines allowed to enter — there was a succession of operators that largely failed, Fels said.

“Because that means that taxpayers own them and taxpayers pay for them.”

Commonwealth Bank

It was fully privatised between then and 1997-98 under the then-Keating government. Proceeds from sales in three portions totalled $8.1 billion.

Telstra

With additional reporting from the Australian Associated Press.