The Federal Government is in talks with the major airlines about subsidising domestic flights in a bid to keep Qantas and Virgin Australia in the air.

Key points: The Deputy Prime Minister spoke with the bosses of the major airlines at the weekend

The Deputy Prime Minister spoke with the bosses of the major airlines at the weekend Michael McCormack says there are ongoing talks about subsidising domestic flights

Michael McCormack says there are ongoing talks about subsidising domestic flights It comes as the Government urges Australians to stay home until restrictions lift

Deputy Prime Minister Michael McCormack told the ABC he spent the weekend speaking with the bosses of both airlines, in the wake of Virgin Australia's decision to suspend all domestic flights except a daily return service between Sydney and Melbourne.

He said it was vital that flights around Australia continued to ensure people returning from overseas could get home after serving their mandatory 14 days of quarantine.

"We also need, of course, to transfer people around from capital city to capital city. So we'll be looking at that," Mr McCormack said.

"We'll be looking at what we can do in conjunction with the airlines, who are cooperative."

The coronavirus crisis has dealt a massive blow to the aviation sector, with some experts predicting Virgin Australia might not survive.

Both airlines have stood down thousands of workers and slashed services across the country.

Mr McCormack would not say how much money could be on the table to help subsidise flights.

When pressed, he repeatedly said "discussions are taking place" and said he wouldn't "rule anything in or out".

Virgin had previously asked for $1.4 billion in a bid to save itself from collapse.

Singapore Airlines, Etihad, Chinese groups Nanshan and HNA, and Sir Richard Branson's Virgin Group all have stakes in Virgin Australia.

Mr McCormack said the company was in talks with its shareholders about how it could raise capital. But we would not be drawn on the possibility of a Federal Government bailout.

Last month, Virgin Australia grounded its entire international fleet in response to COVID-19.

Tourism Minister Simon Birmingham said domestic travel restrictions would probably be lifted before restrictions on overseas travel were.

"At present our focus is on telling people don't travel, and our gratitude [goes] to Australians who have heeded that message and not travelled over the Easter break," he said.