There was a rumour that the AU government was willing to let VA collapse and hope that a foreign low-cost airline like Ryanair or Easyjet would enter the market. But it's unlikely any airline is in a strong enough position to make that kind of move at the moment. So they will likely offer a restructured VA the same kind of support as they'll offer Qantas.

Rex has been talking about buying some bigger jets to try and grab market share while Virgin and Qantas are struggling.