“But let’s be blunt, aviation is incredibly challenging. It’s not just challenging in this country. It’s an industry that has a lot of costs in it. It’s an expensive thing to run. We see – Australia is not the only country that sees airlines go under,” King said.

“Our effort is on making sure we’ve got regional services and regional connectivity. That was their core business, that’s what we want to make sure happens.”

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King argued the government’s failure to reform the allocation of landing and take-off slots at Sydney Airport was not the reason for Rex’s troubles, despite shadow minister Bridget McKenzie’s claims.

Virgin Australia has moved to secure three leases over part of Rex’s Boeing 737-800 fleet, with chief executive Jayne Hrdlicka pointing to the collapse as indicative of the complex nature of the industry.

“Recognising the importance for regional Australians to have access to a comprehensive domestic and international network, Virgin Australia also intends to partner with Rex’s regional business … through potential code share or interline arrangements in the future,” she said.

Virgin’s aircraft orders have been delayed due to the ongoing quality assurance problems at US manufacturer Boeing. Virgin has ordered 31 Boeing 737 aircraft, which are expected to arrive behind schedule.

Virgin and Qantas have offered to fly all Rex passengers with tickets on major domestic routes, such as Sydney to Melbourne, at no charge.

Rex insiders are hopeful the slimmed-down version of the airline can exit administration through a deed of company arrangement within weeks.

Virgin has ruled out a formal takeover of Rex, which would see Virgin absorb Rex’s regional network. Hrdlicka said Virgin’s stint in administration had shown the business the importance of streamlining its core jet services.

“We went through our own tough times and that taught us the importance of sticking to your knitting,” Hrdlicka told ABC Radio.

Sources who were not authorised to speak publicly said consultancy EY has been working with Rex board members since about April, after a dispute between Lim Kim Hai and the other directors came to a head.

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Lim – who owns a 22.1 per cent equity stake in Rex – stepped down from chairing the airline in June after an inquiry from the ASX asked why Rex did not disclose that he was related to a director of a fly-in-fly-out airline, National Jet Express (NJE), when it acquired the smaller business in 2022. Lim’s brother-in-law Thian Song Tjoa held 30 per cent of NJE at the time.

Rex said it believed it had behaved appropriately, and disputed Tjoa was a related party to Rex and “only has a relevant interest in 1 per cent of Rex”. It’s not clear whether the ASX was satisfied with this response, but Lim stepped down as chair soon after.

Earlier this month, Lim launched a board coup against his fellow directors, including former Howard government minister John Sharp, and sought to be reappointed as executive chair.

Rex is the second Australian airline to enter voluntary administration this year, following the demise of budget carrier Bonza in April. Unlike Bonza, Rex owns the leases to its aircraft directly and received a $150 million injection from PAG Asia Capital to secure its Boeing 737 fleet and compete against Qantas and Virgin during COVID-19.

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