Blue Islands want the conditions of their licence for the Guernsey to Jersey service removed.
Currently they have to fly between the islands a certain number of times a day, and at certain times.
However, they want that condition removed so they can remove 'less economical' flights from their schedule.
The airline says it's in response to new operator Waves being given a licence for the same route and they don't believe there's enough demand for a third competitor.