The Australian federal government will work with shortlisted bidders for Regional Express Holdings (ASX:REX) to provide potential support to maximize the prospect of a successful sale of the firm, according to a Wednesday statement from the government's Minister for Infrastructure, Transport, Regional Development, and Local Government.
The government will also work with the aviation firm's administrators as part of an upcoming competitive sale process.
The government's support will be conditional on commitments by bidders to provide an ongoing reasonable level of service to regional and remote communities as well as a need to provide value for money to taxpayers.
The government could acquire the firm if a successful sale does not materialize, per the statement. However, it is not a bidder in the sales process.
It will also offer the airline a waiver of the "use it or lose it" test for its regional flight slots at the Sydney airport, which will ensure its access to those slots until Oct. 24, 2026.
It earlier offered the airline a loan of up to AU$80 million to keep its regional routes operating until June 30.
