Blue Islands is being loaned up to ten million pounds by Jersey's government, as part of a partnership deal.
The money will be used to ensure links between the island and the UK - and take over many of the lost FlyBe routes.
The airline will become the 'base carrier' for Jersey Airport and say it will focus its operations in Jersey, taking on many of the former Flybe routes,
'safeguarding vital regional connectivity into the UK'.
In a statement announcing the partnership, Ports of Jersey CEO, Matt Thomas said the island's air connectivity 'is critical for the way we live our lives'.
During the pandemic, Blue Islands has provided essential, humanitarian flights from Jersey to Southampton and Gatwick.
The loan will be repaid over six years.
Meanwhile, Guernsey's President of the Committee for Economic Development says this is an uncertain for all airlines and welcomes Blue Islands' ongoing commitment to operate the island's chartered flights to more than 20 European destinations once travel restrictions lift.