The deal is considered the first major agreement for the advanced APEX ammunition type, with production due to start in 2025 and deliveries following over the next two years.

Transport Minister Catherine King argued creditor PAG could have collapsed the airline “at any stage” and insisted the purchase was also necessary to make a second attempt to find a buyer.

Air Ambulance Victoria conducts dozens of winch and numerous water-based rescues each year, ranging from individuals swept out to sea to patient retrievals from vessels many nautical miles off the coast.

Last month, 75.1 per cent of Virgin and VARA services arrived on time and 74.4 per cent departed on time, compared to 73.7 per cent and 73.1 per cent respectively for Qantas and QantasLink. Virgin also had the lowest cancellation rate of any airline at 0.6 per cent, according to BITRE data.