The federal government has talked down the prospects of coming to the direct aid of Qantas Airways Limited
(ASX:QAN), after the airline announced plans to axe 1000 jobs and warned of significant first half losses.
The national carrier is also at risk of a downgrade to its credit rating.
Chief Executive Alan Joyce forecast a six-month loss of up to $300 million, which he blamed on the strong Australian dollar, high fuel costs and challenging market conditions.
Mr Joyce says the company had done its best to cut costs and improve productivity.
His $3 million pay packet will be cut by at least 38 per cent this financial year, but he says he continues to have the backing of the board.
Despite calls from Qantas for urgent action, federal Transport Minister Warren Truss said it was important to realise that the airline was a strong company with substantial assets and cash.
Qantas generated a net profit of $6 million in fiscal 2013.
