Govt talks down Qantas aid

Coalition distances itself from guarantee, airline's credit rating under review.

The federal government has talked down the prospects of coming to the direct aid of Qantas, after the airline announced the axing of 1000 jobs and flagged further cost cuts. The national carrier is also at risk of a downgrade to its credit rating.

Qantas chief Alan Joyce has forecast a six-month loss of up to $300 million, which he blamed on the strong Australian dollar, high fuel costs and Virgin Australia "distorting" the market.

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