Australian regional airline Rex is set to appoint Ernst & Young as administrators, according to sources.
Shares of the carrier, formally known as Regional Express Holdings, were halted from trading Monday, pending a further announcement.
EY’s appointment could be announced as soon as Wednesday, according to the people, who asked not to be named.
A spokeswoman for Rex declined to comment. A spokesman for EY didn’t immediately return a phone call or reply to text messages.
Rex shares have fallen 35 per cent this year. The carrier mostly serves regional cities, but has more recently added services between capital cities such as Sydney and Melbourne, routes which are dominated by larger rivals Qantas and Virgin Australia.
Australia has already seen one airline fold this year, after upstart carrier Bonza in April suspended operations and appointed Hall Chadwick as administrators.
Bloomberg