Jake Nelson

The daily service, to launch on 20 June, will give Sydney Airport six Hong Kong flights per day in total between three carriers, and a 20 per cent boost in seat capacity over current levels. It will likely use Hong Kong Airlines’ A330-300 aircraft.

The announcement on Tuesday night, which comes after $80 million in funding and the purchase of $50 million in Rex debt from financier PAG, is the clearest signal yet that the airline could become the first to be owned by an Australian government since Qantas was privatised in the 1990s.

The Australian Financial Review reports Hrdlicka has told senior managers she still intends to depart the company, having announced her exit in February last year. The news comes shortly after Virgin publicly ruled out chief customer officer Paul Jones as a candidate for the top job.

Construction on the 3,200-square-metre facility, expandable up to 6,400 square metres depending on demand, is already underway at the WSI cargo precinct, and is tipped to be ready by late next year when the airport is expected to open.

As part of phase 1, 92 steel columns are being craned into place for the domestic terminal’s headhouse, which will include domestic arrivals and baggage areas, airline lounges, and operational management spaces, among other important components.

Two of the Diamond DA40 XLT aeroplanes, to be housed at Sydney’s Bankstown Airport, have now arrived and been put into service after several weeks of testing, with the remaining four to join the fleet over coming months.