The government should consider taking a small equity position in Qantas, the opposition says, after the airline called for urgent changes to foreign-ownership rules to stay competitive.
Treasurer Joe Hockey has called for a national debate on whether to loosen the airline's foreign-ownership rules.
However, Labor doesn't support changes to the Qantas sale act to allow foreign investors to hold more than 49 per cent of the airline.
"Qantas is an iconic Australian airline. Qantas must remain in majority Australian hands," opposition infrastructure and transport spokesman Anthony Albanese told reporters in Sydney on Friday.
"The government should consider measures such as perhaps taking a small equity position in the airline."
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However, Mr Hockey said if Australians wanted to retain a national carrier with ownership restrictions, "there is a price that needs to be paid".
He would not comment on speculation that taxpayer money would be used to prop up the airline.
"I am not someone that is prepared to kick the can down the road on issues," he said. "If decisions need to be made, they will be made,"
Prime Minister Tony Abbott said while he had not seen a specific proposal on the future of Qantas, basic principles should be upheld.
"Qantas is a great Australian icon and the government wants to see a strong and continuing Qantas," Mr Abbott said.
"And what we want to see is a strong and competitive aviation sector here in Australia."
Shadow treasurer Chris Bowen said Mr Hockey acted irresponsibly by slating changes to foreign-ownership restrictions in Qantas.
"What's not appropriate is for the treasurer to float big ideas ... which are market sensitive, which saw the Qantas share price move, and it's quite irresponsible and frankly naive for him to do that," Mr Bowen told ABC Radio on Friday.
Qantas shares surged over five per cent on Thursday before ending at $1.22, 3.6 per cent higher than the opening price, after news broke of Mr Hockey comments.
Mr Bowen said launching a discussion paper or white paper would have been the more responsible approach to the issue.
Laws require there be a majority Australian shareholding in Qantas as part of a deal that gives the national carrier privileges including airspace priority.
