According to reports from Sky News, Loganair is negotiating a rescue package with the Department of Transport.
Sky News says Ministers have called in PricewaterhouseCoopers to assist in negotiations.
Loganair has had to cut the number of flights it operates daily in half as a result of the Coronavirus pandemic and has asked staff to take a 20% pay cut.
Loganair Chief Executive Jonathan Hinkles told Sky News: “Work is ongoing with all stakeholders to ensure that Loganair continues to provide the lifeline services and essential UK regional connectivity upon which so many communities and customers depend – connectivity that it is providing even today through the COVID-19 pandemic at a time when many other airlines have shut down completely.
“It is not appropriate to provide a running update on the discussions, yet we remain very confident that Loganair’s future prospects are the strongest of any UK regional airline.”
