By aviation writer Scott Mayman, with AAP

Embattled airline Rex Airways has received a multi-million dollar bailout from the federal government to keep its regional services running.

The federal government has pledged $80 million to support the regional airline’s operations and pay former workers.

The company entered voluntary administration in July after amassing debts of more than $500-million and grounding its fleet of Boeing 737s operating between major metropolitan centres. More than 600 workers were made redundant.

Transport Minister Catherine King says ticket sales will remain the same for customers, however, there’s no talk of the airline returning to Canberra anytime soon.

Its management was handed to administrators EY Australia, while Rex’s regional services continued as a buyer or financial lifeline was sought for the airline.

Rex administrators said earlier this year, a large number of potential buyers had already come forward.

Minister King and Workplace Minister Murray Watt announced on Tuesday the government would provide up to $80 million and grant early access to entitlements for Rex’s former employees.

The money will support the continuation of critical services for regional communities, they said in a joint statement.

Rex’s administrators plan to apply to the Federal Court to extend the voluntary administration to June 30, 2025.

If the application is granted the government will continue to guarantee ticket sales made throughout the administration period to that date.

“The guarantee has been effective so far, and has yet to be used with flight bookings holding up well,” the ministers said.

In August, the federal government stepped in to guarantee bookings on regional flights, but resisted calls for a bailout.

The administration process for Rex was progressing, the government said as it noted the recent sale of its Pel Air Aviation business to Helicorp Pty Ltd, which is part of Toll Aviation.

The sale proceeds will be used to repay secured creditors.