Rex shares surge on major cities assault

Regional Express says it is considering operating between Australia's major cities from early next year following Virgin Australia entering into voluntary administration.

The regional airline said on Wednesday it would need $200 million to start "domestic operations in Australia" and has been approached by several parties about providing the equity.

"At this juncture, the Rex Board believes that with sufficient capital injection, there is a confluence of circumstances which render the start of domestic operations by Rex to be a particularly compelling proposition," the regional airline said.

The company said it would make a decision whether or not to proceed within eight weeks, and if it did, the domestic operations would commence on March 1, 2021.

Rex has a fleet of 60 Saab 340 turboprop aircraft.

Before the pandemic it was flying 1,500 weekly flights to 59 destinations in regional Australia but since the virus crisis it has been flying just five routes in Queensland as part of a contract with the state government.

At 1226 AEDT, Rex shares were up 42.2 per cent to $1.28.