Regional Express is removing from all of its planes propeller gear boxes and shafts of the same series as those on a Saab 340 aircraft that was forced to make an emergency landing after one of its propellers fell off in mid-flight.
The airline has also praised the actions of the pilots of flight ZL-768 on Friday for demonstrating "enormous composure and discipline under extraordinary circumstances".
The 34-seat Regional Express plane, carrying 16 passengers and three crew, was about 19 kilometres from Sydney Airport when its right-hand propeller flew off, leading the two pilots to declare a PAN, which is one step down from a full-scale Mayday.
In a decision it described as due to an "abundance of caution", Regional Express said the gear boxes and shafts of the same series would be immediately removed from service while it waited for air-safety investigators to "determine the root cause of the incident".
Regional Express chief operating officer Neville Howell said the separation of the propeller from the engine was an "extremely rare event", and the only other similar recorded incident occurred to a plane operated by US airline Comair in 1991.
"The crew demonstrated enormous composure and discipline under extraordinary circumstances," he said on Monday.
"The captain displayed exceptional skills in landing the aircraft so smoothly in bad weather and strong winds, so much so that the passengers did not notice anything different."
The airline said investigations over the past three days had found the propeller sheared off at the shaft, leaving intact all the fittings at the main assembly.
The plane's first officer saw the propeller break away, and rotate upwards and to the right before moving in a horizontal direction.
Mr Howell said an audio clip of one of the first officer's conversation with air traffic control demonstrated a "calm, collected and professional manner".
Aviation watchers have said it was "incredibly lucky" the propeller did not hit the wing, fuselage or the tail, which could have been catastrophic for the aircraft and those on board. A large object falling from 6000 feet also posed a huge risk to people in the populated area below.
One passenger on flight Zl-768 said the separation of the propeller happened in a split second, and she had initially thought a bird had hit the aircraft.
The propeller has yet to be found, and the Australian Transport Safety Bureau has advised anyone who finds it to leave it where it is, and contact its investigators or the police.