The company has said that the audit was in response to a baseless and scurrilous complaint by a disgruntled engineer and his union and suggested that Rex had a bad safety culture.

"The audit report did not issue a single safety finding and did not even find any minor lapses that would warrant a safety observation, an outcome which is a ringing testament to the excellent Safety Management System and Culture within the Rex Group," the company said in a statement issued on Tuesday, July 16.

"The audit also examined the video provided by an anonymous source to the media that allegedly showed "rust" on a propeller shaft of a Rex aircraft. The report accepted the evidence that the surface discolouration visible in the video was dirt and very minor surface corrosion," the company statement continued.

Rex's deputy chairman, John Sharp said that CASA should be "highly commended for devoting considerable resources in ensuring that the audit report was published soon after the audit so that the public can be reassured quickly of the excellent safety standards of Rex".

"Although the report by CASA has unequivocally vindicated Rex on all the baseless accusations, the damage to Rex's reputation in the minds of some members of the public is great," Mr Sharp said.

"The tabloids and other organisations that are behind this should be condemned by all for their irresponsible and unconscionable actions that played on the highly emotive issue of aviation safety to further their personal agenda," Mr Sharp said.

And he warned that Rex would be "seeking advice on the appropriate actions to be taken against these irresponsible parties to safeguard the integrity of aviation safety in Australia".