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Embattled airline Regional Express is selling its southern New South Wales flight school in a sale that could raise $17 million for the airline.
Rex entered voluntary administration three months ago, causing the cancellation of flights between Sydney, Melbourne, and Brisbane.
Administrators Ernst & Young (EY) have moved to sell the Regional Express-operated Australian Airline Pilot Academy (AAPA) in Wagga Wagga but declined to comment when approached by the ABC.
Regional Express Holdings Limited and a number of its subsidiaries under the Rex Group entered voluntary administration in July. (Supplied: Scott McGregor)
Opening in 2010, the academy gives cadet pilots wanting to fly with Regional Express the chance to take part in a 40-week intensive training program.
The facility contains six blocks of accommodation across more than 23,000 square metres.
Local real estate agent Geoff Palmer said the 179-room facility had an expected market value of $17 million and had attracted broad interest from Australia and overseas.
"We have fielded over 40 enquiries for the property at this stage," Mr Palmer said.
"It's city-based investment funds, there are regionally based family funds, obviously there's good interest from the aviation industry as well.
"There are some offshore interested parties too."
Expressions of interest for the flight school are open until November 8. (ABC Riverina: Amy O'Halloran)
Likely to operate as normal
Wagga Wagga MP Joe McGirr said the facility would likely continue to operate as normal.
"My understanding is that it will be rented back and will continue to run as a flight school," he said.
"Rex are able to train and provide pilots for their fleet and that obviously keeps that fleet going.
"It's part of the reason Rex started the academy."
Wagga Wagga MP Joe McGirr says the flight school is expected to operate as normal once sold. (ABC Riverina: Victor Petrovic)
Mr Palmer said he would do his "best with our clients to make sure" the facility remained a flight school.
In a statement, Riverina MP Michael McCormack said any possible closure of the school would be "devastating" to the local community.
"I have had discussions with Federal Transport Minister Catherine King recently about the AAPA and the importance for it to continue operating," he said.
"I have also raised concerns about Rex as high as the prime minister."
Expressions of interest for the flight school close on November 8.
When Regional Express went into administration in July, it grounded all its capital city flights but has continued to operate in regional markets.
Regional Express was contacted for comment.