Hours after Rex went into administration, the watchdog told Treasurer Jim Chalmers it was probing the airline for deceiving investors about its profitability.

The Australian government is prepared to buy failed domestic airline Rex in what would be a potentially major intervention by the state to maintain domestic airline competition months before an election.

The Australian Government is reported to be considering state ownership of struggling Rex Airlines as the small airline fights to survive.

The Australian government has signalled it could acquire embattled operator Regional Express (Rex) if its long-drawn administration yields no suitable buyer.

Regional airlines shut out of discussions about Rex Airlines' future have called for the government to consider the rest of the sector to provide aviation services.

Experts are questioning why taxpayers should be placed on the hook for bailing out Rex through a government takeover if buyers are unwilling to take the risk.

Nationals Senate Leader Bridget McKenzie discusses the Albanese government’s bid to buy Rex Airlines if the airline cannot find any other buyers.

The federal government could throw a lifeline to Rex Airlines if a potential buyer isn't prepared to commit to providing value and ongoing regional services.