Transcript - Channel 7

NATARSHA BELLING: Taxpayers could soon own Rex Airlines. The Federal Government says it's open to acquiring the regional carrier and making it state owned if administrators can't sell. And joining us live this afternoon is Transport Minister Catherine King. Minister, good afternoon. Thank you for joining us. Now, you've said it is a last resort, but at this stage there are no real bidders emerging. So is it likely?

CATHERINE KING: Well, the first thing is the second sale process is about to start. There were no bidders on that expedited first sale process. What's become evident, if we are to continue to have strong regional carriers and a strong Rex Airlines, is that it will require some support from the Commonwealth. We've indicated today that we are working very closely with the administrators on that second sale process, that we are willing to step in with support for our bidders, for the airline. We hope very much there is a market based solution and that the second sale process is successful. But we also want to say really clearly that it is too important to have a regional carrier of this nature- for this to fail. So we are also signalling that we will start the work to ensure that if the second sale process is not successful, then we will look to work with the states and territories around the possible acquisition by the Commonwealth.

But we're not there yet. What we're at the moment is really saying, we are doing everything we can to make sure that there is a successful second sale, and to make sure that we continue to provide those services that are much needed in regional communities.

NATARSHA BELLING: So why should taxpayers pay for it if you can't find any other solutions at this stage?

CATHERINE KING: Well, the first thing I'd say is that regional aviation is an incredibly important public good. Being able to make sure that we can get regional communities to medical appointments in our capital cities, or making sure that tourism actually operates in our regions, that is a really important part of our economies. But also remember, we already have seen $150 million plus JobKeeper provided to this airline by the Liberal and National Party with no strings attached, and we're now in the position that we're in. So where we are going to have to step in and provide support in order to make sure a second sale process is in place, we want to make sure that there is guarantees around regional routes, guarantees around regional services, guarantees about good governance to make sure we've got a strong regional aviator into the future.

NATARSHA BELLING: All right, Minister. Hope it works, especially for regional people across the country. Thanks for joining us this afternoon.

CATHERINE KING: Absolutely. Thank you so much for your interest.