With Rex crucial to connecting regional cities, Treasurer Jim Chalmers said the government was considering how it could help save the airline.
Questions loom about whether the federal government will step in to save Regional Express, also known as Rex, after the airline entered voluntary administration overnight. Australia's third-largest airline cancelled all flights between major city airports and grounded its domestic fleet of Boeing 737 aircraft.
On Tuesday, Prime Minister Anthony Albanese questioned the carrier's expansion into major capital city routes. He noted Rex had received substantial public funding during the pandemic with "no conditions attached". "One of the things I expressed concern about was having no conditions, so Rex, for example, moved away from their traditional role of being a regional airline into flights, for example, from Sydney to Melbourne," Albanese said.
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