The revelation has presented a dilemma for Rex's administrator as it tries to save the airline on the grounds that its flights are “essential” regional services. It also suggests airlines and businesses could be waiting for Rex to be formally wound up before making a move. 

The news is likely to have significant ramifications for long-haul travel into Australia, given the tie-up with Virgin is a major incentive for customers to book travel with Etihad. Abu Dhabi itself offers onward connections to more than 130 destinations.

The company previously announced the proposed sale of Quickstep Aerospace Services and its maintenance, repair and overhaul operation based in Tullamarine, Victoria.

Slated to launch next year, the academy – billed as the first of its kind in Australia – will be open both online and on RMIT’s campus, and will include areas such as safety culture, risk management, and human safety factors such as sleep and fatigue.