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 government has already announced intentions to purchase four of the surveillance aircraft, which can fly at 50,000 feet for more than 24 hours at a time.

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.