Rex Airlines has secured a multi-million dollar boost to keep flights operating.
The Federal Government has pledged 80 million dollars to support operations, while Rex seeks to extend its voluntary administration.
The airline remains flying between Mildura and Melbourne, and also has flights to Broken Hill.
The consumer watchdog says less competition after Rex’s exit from metropolitan flights is driving up domestic airfares.
A report by the ACCC shows prices rose 13 per cent in the three months to September.
Commissioner Anna Brakey has told Nine Radio they’re closely monitoring the pricing behaviours.
Federal Transport Minister Catherine King has told Nine Radio ticket sales will remain the same for customers.