Virgin Australia says it's unfair for Qantas to be seeking government assistance and any taxpayer guarantee should be extended to all airlines.
In a statement on Thursday, the foreign-owned airline said it didn't oppose moves to unshackle Qantas from foreign ownership restrictions through a repeal of the Qantas Sale Act.
But any government assistance to Qantas would disadvantage the rest of the industry and therefore should be extended to other carriers, including Virgin and struggling regional carrier Brindabella.
"What Australia does not need is the government giving Qantas a significant advantage through financial assistance, such as a taxpayer guarantee," Virgin said in a statement.
"Any such guarantee should be given to all players."
Qantas has insisted it has never sought a handout from the Australian government and doesn't want one now.
Qantas chief Alan Joyce says while repealing the Qantas Sale Act is essential in the long term, there was little immediate public appetite for it.
He's instead signalled requests for a debt guarantee.
Treasurer Joe Hockey says assistance to Qantas is not an immediate priority for the coalition but Finance Minister Mathias Cormann signalled the carrier might be treated as a special case.
