The Australian Financial Review (AFR) reported that Qantas Airways Ltd may sell its shares in Jetstar's Asian arm or in its frequent flyer division if the Australian government does not boost the national carrier's credit rating according to a report published by Business Spectator.

The AFR wrote that the planned stake sale was designed to fend off the airline's need for an equity raising. The newspaper's sources said Qantas will have to prepare other options by the time February, when ratings agencies will review the company's rating. The sources added that Qantas' preference remains for the government aid, the report said.

This week, the airline's chief executive officer (CEO) Alan Joyce effectively ruled out a capital raising for the troubled airline, the report stated.

The AFR said a Qantas spokesperson declined to comment on the said stake sale, Business Spectator reported.

The spokesperson said: "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."