The Herald has reported that “sources with knowledge of the deal”, who cannot speak publicly, said the announcement – alongside the terms of the buyout – could be made as early as this week after Air T agreed to the deal first rumoured to be in the works last month.

The Flying Kangaroo, one of two passenger airlines operating flights to Devonport alongside Rex, will upgrade its lounge at the regional airport as part of the agreement. QantasLink currently flies 46 times per week between Devonport and Melbourne using Dash 8 Q400s.