Rex Airlines’ future is up in the air as the company grapples with boardroom turmoil, a stoush with its biggest shareholder, and speculation that restructuring experts Deloitte have been appointed to the group.

Rex, the nation’s third-largest airline, sought a trading halt in its shares until Wednesday, after The Australian reported that Deloitte restructuring partners Sal Algeri and Richard Hughes, who worked on Virgin Australia’s administration, had been appointed to the company.

Prime Minister Anthony Albanese on Monday said the federal government was seeking information from Rex on its financial situation and will keep a close eye on the situation as it unfolds.

“I’m very hopeful that they’ll see their way through,” he told ABC Afternoon Briefing. “We have sought information from the airline through Minister Catherine King, who came to see me about this today. And through the department we will continue to monitor what happens there.”

Rex flies to 56 destinations, including between the cut-throat markets of Sydney, Melbourne and Brisbane. In June, it began offering one-way fares as low as $99 between Melbourne and Perth in an effort to steal market share from its bigger rivals Qantas and Virgin.

The airline also owns air freight, aero medical and charter operator Pel-Air Aviation, the Australian Airline Pilot Academy in Wagga Wagga and Ballarat and also a propeller maintenance organisation. Additionally, it has a 50 per cent stake in National Jet Express, which is a fly-in-fly-out charter and freight operator.

Earlier this year, Rex had announced it was partnering with Etihad, which enabled Rex’s domestic flights to connect with the Middle East operator’s global network.

Rex has been narrowing its losses since the pandemic hit, which roiled airlines globally. In its first half results, released in February this year, Rex grew its total revenue 4.6 per cent. It reported a half-year loss of $3.2 million, which had narrowed from a loss of $16.5 million in the previous corresponding period.

Rex, formerly known as Regional Express, was contacted but in a statement a spokesperson said it wasn’t appropriate for them to make any comment.