Two thousand jobs in peril amid Rex Airlines trading halt

It comes as speculation mounts that the regional airline has brought in a restructuring team from Deloitte.

According to the ASX statement on July 29 the trading halt of the airline's shares will last until at least Wednesday.

The trading halt does not affect scheduled flights.

Transport Workers Union national secretary Michael Kaine said up to 2000 jobs were now in limbo.

"The TWU worked with Deloitte to get Virgin Australia back in the air and will work just as hard with them again to try to rescue Rex Airlines," he said.

"Despite multibillion-dollar Qantas claiming there's no room for competition, we know healthy competition is the only remedy for an industry in crisis."

PM Anthony Albanese said he believed the airline would "see their way through" amid speculation they had called in restructuring firm Deloitte.

"One of the things that we need to do is make sure that we have a viable and ongoing Australian aviation industry," he said.

"I will always stand up for Australian airlines. It is important that we do that and it is a competitive industry globally and every single year there wouldn't be a week go past where an airline somewhere in the world doesn't get into trouble."

Mr Albanese said "Rex is particularly important for regional communities, and there are a range of communities in NSW, in Queensland, in South Australia and right around the country that rely upon Rex, where Rex is the only airline to go to some of those destinations, so it's important".

He said Rex came through COVID and "received substantial government support. And we will remain, of course, vigilant when it comes to this airline and continue to work with them because we want to see not just those jobs maintained, but we also want to see those communities continue to have access to aviation, that's so important for their economy and for their way of life".

Rex is Australia's largest regional air carrier outside the Qantas group and flies to all six states across Australia.

Rex has 56 destinations including many in regional Australia such as Port Macquarie, Coffs Harbour, Orange, Dubbo and Albury in NSW, Mount Gambier in South Australia and Burnie and Devonport in Tasmania.

It comes as budget carrier Bonza was permanently grounded after creditors voted to liquidate the embattled airline with staff still owed millions of dollars.