Yes, it is an Urban Myth. Yes, as Oz777 has correctly posted, QF have indeed lost passengers and crew in the past to *incidents* - a total of 93 souls over the years. While all of them were mainly in the 30's/40's, it is also true they have lost nobody in a "pure-jet operated incident". As for United Airline (the poster in this thread) assertation they are safest, statistics have to be taken at face value. Would you believe that the "old" Aeroflot had a safety record almost on par with QF? Yes, we all read the regular "Aeroflot Crashes" headlines every so often in the papers, but consider that in those days, Aeroflot had a fleet of over 2,800 airframes (compared with QF's 30-40 odd) and the amount of flying Aeroflot did compared to QF's was what, 200, 400, 600 times greater? Aeroflot of old contained everything from crop dusters in Siberia to the Intercontinental Aeroflot International fleet - the latter did indeed have an excellent record. The headlines we kept seeing were about the poorly run internal/domestic divisions of Aeroflot. Also take into consideration until 1993, QF were an International carrier only operating mainly long haul routes - most of their airframes had only 2 or 3 rotations per day and the operating environment in Australia is one of clear skies (traffic wise) and wide open spaces, again lessening the chances. When you compare the number of airframes, against number of daily rotations for QF against even say UA, how can the figures be read the same??!! They can't mathematically, so it's very much a case of statistic, figures and damn lies !!
Oh - and for the record, the International division of CAAC/Air China has only lost one passenger in an incident over 40 years. The old internal/domestic divisions, like Aeroflot, were a different matter entirely. When all is said and done, QF *do* have an enviable reputation for safety and used to have a maintenance regime and corporate attitude to safety that was second to none.