* In talks with partners about $129 mln equity investment
* Board to decide in next 8 weeks whether to proceed
* Operations would start on March 1, 2021 if approved (Adds details of approaches from parties, current operations)
SYDNEY, May 13 (Reuters) - Australian airline Regional Express Holdings Ltd (REX) REX.AX is exploring the feasibility of operating between major cities and is in talks with potential partners for an equity investment estimated at A$200 million ($129 million), it said on Wednesday.
The regional turboprop carrier's interest in big-city operations comes after the second-biggest airline, Virgin Australia Holdings Ltd VAH.AX , last month entered voluntary administration and is up for sale.
The REX board expects to make a decision in the next eight weeks on whether to proceed, the airline said in a statement, adding that operations would start on March 1, 2021 if it decides to go ahead.
REX, which has a market value of A$100 million, said it had been approached by several parties interested in providing the equity but did not name them.
Australia's domestic aviation market is a duopoly dominated by Qantas Airways Ltd QAN.AX and Virgin Australia. Before the coronavirus pandemic grounded most flights, Sydney-Melbourne and Sydney-Brisbane ranked among the world's busiest domestic routes.
REX currently operates on less competitive regional routes like Sydney-Wagga Wagga and Adelaide to Port Lincoln using a fleet of ageing Saab 340 turboprops with 30 to 36 seats.
Non-binding indicative offers for Virgin Australia are due on Friday and 19 parties have entered a data room to access confidential information, according to an affidavit from its administrator published on Tuesday. ($1=A$1.5475)