Rex airlines enters voluntary administration with all flights between capital cities grounded

Federal government says Rex will have a future' with minister suggesting Labor will step in to save troubled company

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All Rex flights between capital cities have been grounded and the airline has entered voluntary administration just hours after the Albanese government suggested it would intervene to ensure the nation's third-largest carrier didn't collapse.

Late on Tuesday, EY - formerly known as Ernst & Young - announced it had been appointed as administrators of the company, and that the airline's Boeing 737 operations between capital cities such as Sydney, Melbourne and Brisbane had been grounded, with Virgin Australia stepping in to offer impacted passengers rebooking free of charge".

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