Rex currently offers three flights daily to and from Albury and Sydney on weekdays, and two on weekend days.
After the collapse of Bonza in July last year, the loss of Rex would leave Qantas without competition in this region and local passengers likely paying exorbitant airfares.
Rex entered voluntary administration last year and given until June this year to find a suitable buyer.
The Australian Government committed funding to keep the airline flying and in February this year announced it would acquire the airline if a suitable buyer could not be found.
Transport and Regional Development Minister, Catherine King this week said the government was working with shortlisted bidders for the airline and the administrators had asked for additional time.
The administration period has now been extended until December with the Australian Government as the major creditor after essentially buying the debt.
Ms King said a guarantee had been put in place to make sure people could confidently book flights with the airline.
“That's been really important, being able to keep the airline flying, and being able to keep that money flowing in,” she said.
“Aviation is a really fickle and difficult business.
“It’s got a lot of costs to run this airline in particular … one of the problems is that it's got an aging fleet of aircraft that are very expensive and very hard to replace.
“There wasn't a lot of long-term planning for this, in terms of fleet renewal, and that's one of the challenges the administrators have had to tackle in getting a buyer.”
Ms King said Rex was too important to fail and that the Federal Government would stand by its commitment to buy the airline if a corporate buyer could not be found.
“Our first preference is obviously to get a commercial buyer,” she said.
“It will need some support from government, and we stand ready to do that.
“If that falls over … we will step in.”
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