The Brisbane-based company said it was continuing to explore a range of options to manage through the COVID-19 crisis.

That included requesting financial support from the Australian Government in the order of $1.4 billion as part of a broader industry support package to prepare for a prolonged crisis.

“It is a preliminary proposal and remains subject to approval by the Virgin Australia Holding’s board and the Australian Government and may or may not include conversion to equity in certain circumstances,” the company said in a statement to the ASX.

The Federal Government has already provided a $900 million lifeline to the industry.

“Companies like the Virgin Australia Group are taking a range of measures to respond and manage the financial impact,” the company said.

“However, support will be necessary for the industry if this crisis continues indefinitely, to protect jobs and ensure Australia retains a strong, competitive aviation and tourism sector once this crisis is over.

“Virgin Australia continues to be in compliance with its continuous disclosure obligations and will update the market as required.”

Regional Express also announced it will shut down its Queensland Regular Public Transport (RPT) services from tomorrow, including the five regulated flights it operates with the Queensland Government.

The decision follows requests for help from Rex to the Queensland Government while the company ran out of funds.

It follows calls from the mayor of Isaac Regional Council, Anne Baker, for mine workers to prevented from returning to their hometowns to prevent the spread of the virus.

Baker said the State Government must tell the mining operators to cut the normal mass movement of workers and fast track accommodation in or near the mine sites.

The idea would severely limit the fly-in, fly-out and drive-in, drive-out rostering of most of the remote mines, but Baker said a single case of the virus at a mine site would shut down the operation.

“Outbreaks in mining communities (would) shut down an entire industry,” Baker said.

The Queensland Resources Council said wide-ranging measures have been put in place and the industry was following the advice of the Chief Health Officer. It also has national protocols to ensure it continues to operate safely.

“Shutting down the resources sector would have a devastating impact on regional economies and jobs at a time when other industries are coming to a standstill,” QRC chief executive Ian McFarlane said

In a statement to the ASX, Rex Express said that while the Federal Government had announced several assistance packages for airlines, no concrete details were available and “not a single cent has been disbursed”.

“Further, the Federal Government is only funding a minimum essential service of one return weekly flight per route, and this reduced schedule approach was rejected by the Queensland State Government.

“With cash fast running out and no immediate prospect of a workable solution from the Queensland State Government, Rex has no choice but to declare a Force Majeure event for the contract and suspend all services on Queensland regulated routes indefinitely until it has the ability to service the contract in a commercially viable manner.

“Queensland’s Transport and Main Roads division will be notified officially today of this decision.”

Affected passengers will have their tickets placed on credit for when services resume.

Earlier in the week, Rex endorsed the Federal Government’s funding packages for the industry designed specifically to ensure that the existing network of Regular Public Transport (RPT) regional air services were maintained at a reduced capacity.

The Queensland towns that will have services suspended are: Bamaga, Bedourie, Birdsville, Boulia, Brisbane, Burketown, Cairns, Charleville, Cunamulla, Doomadgee, Hughenden, Julia Creek, Karumba, Longreach, Mount Isa, Mornington Island, Normanton, Quilpie, Richmond, St George, Thargomindah, Toowoomba (Wellcamp), Townsville, Windorah, Winton.