Rex flights between major cities, including the Gold Coast have been grounded after the airline was placed into voluntary administration.
Shares in the airline were placed in a trading halt on Monday as speculation mounted that the airline was in trouble.
Rex confirmed on Tuesday night that it had called in Ernst and Young as administrators.
The airline will continue flying regional routes but has suspended its 737 services between major cities.
That includes its daily flights between the Gold Coast and Sydney and Melbourne.
Virgin Australia has stepped in to help impacted Rex customers, offering to rebook them free of charge.
Affected passengers should contact Virgin by August 14.
Virgin is also set to step in and take over the lease of three of Rex’s 737s, which ironically were former Virgin Australia aircraft before it was placed into administration.
Rex has faced headwinds since attempting to take on Qantas, Jetstar and Virgin on major routes across Australia.
It leased several 737s to expand services to include flights between major Australian cities including the “golden triangle” of Sydney, Melbourne and Brisbane.
But the airline has reportedly been losing as much as $1 million a week while also dealing with a boardroom stoush.
