The state Labor government is in negotiations to invest $200 million in Virgin Airlines acquired for $3.5 billion by American fund Bain Capital earlier this month while the federal government has given $60 million to Regional Express (Rex) to launch domestic capital operations.

Mr Katter said rural and remote Queenslanders were unlikely to see a red cent.

"Virgin is shutting down regional services, we've had a Senate inquiry into regional airfares, and the Federal Government gave a recovery package to Rex, which has passed on no increased services to regional communities," Mr Katter said.

"Rex didn't pass the $60 million onto consumers or increase services in the Gulf or western areas - they've used it to leapfrog and boost their push for metropolitan services in Brisbane, Sydney and Melbourne."

Mr Katter said this showed the airlines don't care about the region pointing to the fact Virgin has stopped flying to Cloncurry as an "underperforming route".

"It is unacceptable that rural and remote air routes that had already been failed by the market continued to be overlooked," he said.

"If ever there was a case for government intervention on these flight paths, it is now."

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