On Tuesday evening the Treasury announced Flybe will continue to operate after review of the air passenger duty (APD) owed.
Shareholders have also confirmed they will inject more funds into the airline “alongside government initiatives.”
However, environmental groups have warned cutting APD will hamper the climate crisis.
Flybe confirmed they will “continue to operate as normal” following successful talks.
Flybe chief executive Mark Anderson welcomed the deal as a “positive outcome for the UK” that “will allow us to focus on delivering for our customers and planning for the future.”
Chancellor Sajid Javid said on Tuesday evening, “I welcome Flybe’s confirmation that they will continue to operate as normal, safeguarding jobs in UK and ensuring flights continue to serve communities across the whole of the UK.
“The reviews we are announcing today will help level up our economy. They will ensure that regional connections not only continue but flourish in the years to come – so that every nation and region can fulfil its potential.”