Coronavirus: Regional airlines to keep flying thanks to $300m funding boost

The regional aviation sector has been thrown a lifeline after the Federal government announced almost $300 million in funding, designed to keep essential flights operating during the COVID-19 crisis.

The Regional Aviation Rescue Initiative offers two funds; $198 million is available to ensure regular air services continue, albeit at a reduced capacity.

Secondly, $100 million is on offer for regional operators, assisting them in staving off the prospect of imminent collapse following a significant reduction in demand over the last two weeks.

Rex was set to cease their entire flight operation over the weekend, preparing to stand down around 90% of its staff.

Since the government's pledge, the airline has admitted they'll still be forced to lay off some staff as flight activity is down 80%, but can now avoid 30-40% of job losses.