Emirates rules out throwing financial lifeline to Qantas

[SYDNEY] Emirates president Tim Clark said that he is carefully watching developments at alliance partner Qantas, but ruled out throwing a financial lifeline to the embattled Australian flag carrier, in comments reported yesterday.

Earlier this month, Qantas forecast a half-year loss of up to A$300 million (S$336.8 million) and said that it would axe 1,000 jobs, leading to a credit downgrade from Standard & Poor's, which cut its rating to "junk" status.

Qantas blamed its predicament on record fuel costs and fierce competition from subsidised rivals, particularly Virgin Australia, which is majority owned by state-backed Singapore Airlines, Air New Zealand and Etihad.