One of Europe's largest airlines Flybe has secured a rescue deal with the Government that will allow it to keep operating.
Business Secretary Andrea Leadsom said she was "delighted" with the agreement, which came after rescue talks over the weekend.
The airline runs from East Midlands Airport.
Last February the airline was bought by a consortium led by Virgin Atlantic following poor financial results.
Connect Airways, which consists of Virgin Atlantic, Stobart Air and Cyrus Capital, paid £2.2 million for Flybe's assets and operations.
Flybe completed the sale of its assets to the group in the deal worth only 1p per share.
If the company had collapsed 2,000 jobs would have been at risk.
Mrs Leadsom tweeted: "Delighted that we have reached agreement with Flybe's shareholders to keep the company operating, ensuring that UK regions remain connected.
"This will be welcome news for Flybe's staff, customers and creditors and we will continue the hard work to ensure a sustainable future."
Transport Secretary Grant Shapps also welcomed the agreement.
He said: "Delighted we've been able to work closely with Flybe to ensure Europe's largest regional airline is able to continue connecting communities across Britain. We will undertake an urgent review into how we can level up the country by strengthening regional connectivity."
Chancellor Sajid Javid had held talks with the Business and Transport Secretaries to discuss if the loss-making regional carrier could defer paying this year's estimated air passenger duty (APD) bill of £106 million for three years or whether the tax should be cut for all domestic flights, according to multiple reports.
The deal means Flybe has avoided being the second UK airline to fail in four months, after Thomas Cook went bust in September.
