If the federal government does not bolster Qantas Airway's (QAN) credit rating, the national carrier may sell a stake in its frequent flyer division or Jetstar’s Asian arm to fend off the need for an equity raising, The Australian Financial Review reports.
According to the newspaper, sources say the airline will have to have other options ready to implement by the time ratings agencies review its rating in February, though its preference remains for government assistance.
Qantas chief executive officer Alan Joyce effectively rule out a capital raising earlier this week.
The AFR reports a spokesperson for the national carrier declined to comment on the sale of a stake in its frequent flyer division or Jetstar’s Asian arm.
"The market often speculates on these matters and we don’t join in. Suffice to say there is a lot of value in the Qantas Group as a whole," they said.