Australian regional Rex Airlines is to be put into administration, according to reports.

Bloomberg has reported that Ernest and Young are expected to be appointed as administrators by the middle of the week. Trading in the airline’s shares on the Australian Stock Exchange has been suspended.

READ: Australia’s Rex demonstrates increased profitability

Founded in 2002, the airline is a primary user of the Saab 340 turboprop. Its  service is widely regarded as essential connectivity for remote communities across the vast landmass.

Transport Minister Catherine King has said that the Australian government value the ‘importance of regional aviation’ and will ‘work with the airline’ to secure a future.

The news comes months after the collapse of rival regional airline Bonza.