Rex has been granted permission to coordinate with rivals Qantas and Virgin Australia on 10 regional routes during the coronavirus crisis.
The business will also now shut 30 per cent of its leisure outlet shops across multiple brands at home, and 35 per cent worldwide.
Virgin Australia will cut flying in its domestic network by 90 per cent and has followed Qantas in standing down 8000 workers.
Australia’s aviation industry continued its fightback on Tuesday despite states enforcing more stringent border restrictions, and the UK going into effective lockdown.
Australians scrambling to fly home were left in limbo on Tuesday after Dubai and Abu Dhabi airports announced they would suspend all passenger flights, including transfers, from 25 March.
Tasmania and Queensland have further restricted entry through their borders, allowing Australians in only if their travel is essential.