It seems the Commonwealth could be headed back into the airline business.

REX was placed into voluntary administration last year with administrators given a deadline of June 30 to find a new buyer.

Should they fail to find a new owner,  the Federal Government has left the door open to a contingency plan in which the Commonwealth would acquire REX.

In a statement from the Prime Minister:  “Regional Australians can be assured that our government will continue to fight to ensure these regional airfare remain available.”