The Government is being "dragged kicking and screaming" on the issue of whether to help Qantas, Treasurer Joe Hockey says, even as he continues to give strong indications that the airline will receive some assistance.

Last night in Canberra, Qantas chief executive Alan Joyce delivered a speech increasing pressure on Coalition MPs to change government policy or risk the airline losing its status as national carrier.

The ABC understands Qantas is lobbying the Government to offer a public guarantee of its debt to secure its credit rating.

The previous Labor government offered similar backing to banks at the height of the global financial crisis.

Mr Hockey says the airline meets several "crucial tests" that he would apply to giving taxpayer money to private enterprises.

He says the Qantas Sale Act, which limits foreign ownership in the airline to 49 per cent, has "imposed restrictions" on Qantas that other airlines do not have to contend with.

"Secondly, is that business fundamental to the economy?" the Treasurer asked.

"Is it providing an essential service to the economy such that if it were to have significant issues that inhibited its day-to-day operations it would have a detrimental impact on the economy - and in the case of Qantas the answer is yes.

"The third factor that needs to be considered is are other governments actively supporting other players in that industry? The answer in relation to Qantas is yes.

"The fourth, hugely important test is is the enterprise trying to fix up its own balance sheet? And quite obviously Qantas is trying to do it."

Virgin warns against unfairness

Mr Hockey says the Government will "look closely" at the airline's half-yearly results due to be posted on February 27.

"We're actively considering the issue, but it's not our immediate priority at this moment. We are dealing with it," he said.

"And if you think we're being dragged kicking and screaming on this one, you're right."

Qantas released a statement shortly after Mr Hockey had spoken, welcoming the Treasurer's statement.

"We welcome the latest comments from the Treasurer on the challenges facing Qantas, particularly the acknowledgment that we are essentially competing against foreign governments because of the way Virgin Australia is funded," the company said.

Qantas has complained about Virgin's plans to raise up to $350 million through a share buyback, underwritten by its major shareholders Air New Zealand, Singapore Airlines and Etihad.

But Virgin today slammed any plan to grant Qantas a government debt guarantee.

"This would be to the detriment of the entire industry, including the smaller regional carriers," it said in a statement.

"Any such guarantee should be given to all players."

Virgin blames Qantas management for its current financial difficulties and says that any form of assistance to Qantas would just enable it to rebuild its monopoly of the past.

Virgin says it has no problem with the Government repealing the Qantas Sales Act.