Australia's federal government looks increasingly likely to give Qantas a debt guarantee to help it through its financial crisis.
But Virgin Australia chief executive John Borghetti has accused his rival airline of peddling myths to twist the government's arm.
He says it's bizarre that a government would consider a move involving the largest player in the industry.
Mr Borghetti says he doesn't accept the argument that a government lifeline is appropriate to ensure the survival of Qantas.
He says the flag carrier is nowhere near folding.
Mr Borghetti says its credit rating has been downgraded but "welcome to the world of aviation".
He says if Qantas was given a debt guarantee by the government, Virgin Australia would be seeking the same within 24 hours.