Loganair is in talks with the British government over a state bailout.
According to Sky News, UK officials have drafted in advisers to help decide the terms.
The airline is currently running flights between the Island and Liverpool, including the patient transfer service since the collapse of Flybe last month.
The company, which usually runs around 200 flights a day has had to cut its schedule by more than half as a result of the ongoing Coronavirus pandemic.
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