Re-nationalising the airline industry ... a sink or soar government decision?

There is now no British-owned large mass-production car manufacturer.

So, it seems any notion of an Australian government owning and running an airline like it used to is a very bad idea. And we know why the Albanese government is doing it - not with some vision of industry renewal but short-term politics to shore up its lagging regional vote. This has the bonus of embarrassing the National Party given its regional base.

Will the Nationals convince their more market economic oriented Liberals to match Labor's Rex Airline takeover? It is a return to the classic case of the National Party tail possibly wagging the Liberal Party dog and setting the Coalition's policy direction regardless of the wider public interest.

There is an issue of credibility at stake here too. The Liberal shadow treasurer has been talking big about reducing government spending and waste.

Details so far are scarce. Promising to match Labor to prop up a debt-laden airline is hardly a good place to start.

With an election about to be called, it is time the Coalition clarified just where they stand on this issue and, most importantly, just what are the principles underlying their future industry policies? Politically, Opposition Leader Peter Dutton has to show leadership about who is really in charge of the Coalition - the Liberals or the smaller National Party?