In a statement this morning, Rex said “a last-minute intervention” from the Queensland Government meant it would reverse its decision, but only for a week unless negotiations resolved the issue.

The Government pays Rex $10 million a year to service the five communities and its contract was now being renegotiated to allow it to continue.

But the company said it had been trying to negotiate with the Government on the issue since mid-March and made its decision on Tuesday because it had been unable to resolve the issue.

“Rex first requested consideration from the Queensland Government on March 19 and has since then made numerous appeals,” the company told the exchange earlier this week.

“In the meantime, Rex’s financial position and cash flow has seen a further sharp degradation due to the spectacular drop of patronage arising from travel being limited to essential travel only, as well as the border control measures being implemented across Australia.”

But this morning Rex said it would resume the services and would introduce a reduced schedule from April 2 on all five regulated routes.

“A final agreement has not yet been reached with Transport and Main Roads on the reduced schedule, however Rex will run the reduced schedule in good faith until April 8, after which the total suspension of all Rex’s services in Queensland may still proceed.”

Bailey said the Transport and Main Roads Department was finalising contract changes with Rex to allow this to happen.

“Regional Queensland communities must continue to have access to air services as we fight to contain COVID-19,” Bailey said.

“The Queensland Government will make sure of that.

“We’re also planning charter flights for essential food and medical deliveries and worker travel to remote and rural communities where necessary.”

The new flight schedule is on the Rex website.