The Albanese Labor Government today announced regional Australia will continue to receive critical aviation services into the future, offering to purchase the struggling airline if no other buyer can be found.

"Regional Australians deserve access to quality and crucial regional aviation services," Prime Minister Anthony Albanese said.

“We are working collaboratively with the administrators of Rex to ensure that regional services continue beyond June 2025, including looking at what support the Commonwealth can provide.

“Regional Australians can be assured that our Government will continue to fight to ensure these regional airfares remain available.”

The Government said it will work with the Administrators of Regional Express Holdings (Rex), as part of an upcoming competitive sale process, to ensure crucial regional aviation services continue beyond 30 June 2025.

"We will work with shortlisted bidders on what support the Albanese Government may be able to provide to maximise the prospect of a successful sale," the press release read.

Member for Parkes Mark Coulton MP has previously raised concerns over the amount the Government is spending in the bailout.

"The Coalition is requesting a briefing on this decision to understand the details to ensure it’s in the best interest of the thousands of regional Australians who rely on Rex, including those in the Parkes electorate," Mr Coulton said.

We would like to see a bipartisan approach to the retention of regional aviation services. The Government needs to ensure that the regions are not cut off from the aviation services they need and deserve.

Terms of Commonwealth support will be subject to negotiation, but will be conditional on commitments by bidders to provide an ongoing, reasonable level of service to regional and remote communities, the need to provide value for money to taxpayers and good governance.

"The Government is not a bidder in the upcoming sale process and would like to see a successful market-led outcome. However, in the event there is no sale, the Albanese Government will undertake necessary work, in consultation with relevant state governments, on contingency options, including preparations necessary for potential Commonwealth acquisition."

The Federal Government is also providing further support through a waiver of the “use it or lose it” test for Rex regional flight slots at Sydney Airport, which will ensure its access to those slots until 24 October 2026.

This comes on top of a loan of up to $80 million to keep Rex’s vital regional routes operating until 30 June 2025, and acquiring $50 million of debt from Rex’s largest creditor, PAGAC Regulus Holdings Limited, earlier this year to ensure the airline could continue to operate.

The Government says these actions make clear the ongoing commitment to maintaining access to aviation services for regional and remote communities, and recognises the critical role of the Rex network to local economies.

"The Albanese Labor Government will back regional aviation just like we back regional telecommunications because we know our great country towns deserve quality services and connectivity just like our cities."

Rex Airlines route map includes areas across the Back Country. Image: Rex