Speaking to ABC Radio National on Wednesday morning, the minister said the airline is “incredibly important” for regional travel but stressed that the government can’t step in and save Rex “at any cost”.

The news caps a sensational turnaround after Rex took the leases of old Virgin aircraft following its own collapse during the COVID-19 pandemic in 2020.

The six hours of industrial action, which had been slated for Wednesday, will not go ahead, with Ampol making refuellers a better offer after six months of negotiations. The good-faith talks are to continue Friday on “a number of outstanding items”, the union said.

In a press release, Sharp, which operates 23 Metroliner turboprop aircraft servicing five states, said the government should offer support to Rex, but “only on routes that Rex is the sole operator”.