Airline company Regional Express entered voluntary administration this week, disrupting thousands of passengers and placing jobs at risk.
The regional airline announced it had cancelled all major-city routes, while seeking investors or a buyer to sustain its regional operations.
Virgin Australia is assisting affected passengers by offering alternative flights.
Administrators from EY expressed confidence in Rex’s continuation as a key regional carrier, and noted Virgin’s interest in acquiring some of Rex’s Boeing 737s.
The Transport Workers Union is predicting that approximately 600 of Rex’s 2000 employees may lose their jobs, as a result of the situation.
The TWU has urged the federal government to invest in Rex, to minimise job losses and support regional services.
Rex has struggled financially since expanding into major-city routes, reporting a net loss of 3.2 million dollars for the first half of 2023/2024.
Treasurer Jim Chalmers acknowledged the importance of maintaining regional flights and noted the possibility of further federal support.