The move would make the airline the first federally owned carrier since Qantas privatised in the 1990s.

“Regional Australians deserve access to quality and crucial regional aviation services.

“We are working collaboratively with the administrators of Rex to ensure that regional services continue beyond June 2025, including looking at what support the Commonwealth can provide.

“Regional Australians can be assured that our government will continue to fight to ensure these regional airfares remain available.”

The government said it would work with shortlisted bidders on what support could be provided to complete the sale.

“The government is not a bidder in the upcoming sale process and would like to see a successful market-led outcome,” a statement said.

EY has a little over five months to secure Rex Airlines commercial future after the Federal Court late last year granted an extension of the voluntary administration to June 30.

The collapsed airline has been able to sell its ambulance business Pel-Air to logistics giant Toll for $47 million. Other asset sales are ongoing.

Former airline employees were granted early access to the Fair Entitlements Guarantee, with 306 claims received so far and all but four granted.

More than $7.1 million has already been provided to those staff.