The Western Australian Government answered a plea from Rex to local, state and federal governments for assistance made on Monday, March 23 with a commitment of up to $3 million to ensure the continuation of its service for at least three months.

However, an announcement will be made net week giving full details of whether Rex will proceed to shut down the rest of its network.

"We will keep our WA services going for at least three months, albeit at a reduced schedule to match the drop in demand, even if we shut down services in all the other routes on our network if the circumstances so require," Rex's Deputy Chairman, the Hon John Sharp said.

The airline said in a statement that although Rex has a very strong financial position with no debts and no lease payments, owning all its aircraft and buildings, the savage deterioration in passenger numbers in the last two weeks would put the airline out of business within a month.

By shutting down the network, standing down 90 per cent of staff and seeking the support of service providers to allow a moratorium on payment for annual contracted services, Rex now has enough cash to last at least six to nine months in shut-down mode.

Rex's warning on March 23 was echoed in an ultimatum from eight other regional operators, in an open letter sent to the Deputy Prime Minister on Thursday March 26, urging the Government to take action within 24 hours or face the collapse of all these carriers within days.

Mr Sharp said that prior to the WA government's commitment on Friday, March 27 Rex had prepared a media release for today announcing the total shutdown of its network.

"It is pleasing to see that the WA Government is stepping in to support regional aviation's indispensable role in the socio- economic and socio-medico landscape of regional WA," he said.

"For example, Rex regularly transports blood to and from rural communities as well as urgent medical supplies, patients needing treatment and specialist medical consultants.

"The Transport Minister's assistance package for Rex's routes in WA means that these routes would no longer be bleeding cash."