Aer Arann has won approval from Dublin's High Court to remain in examinership.
The status, similar to administration in the Isle of Man or United Kingdom, will continue until the next court hearing on October 22.
Examiner Michael McAteer, from chartered accountants Grant Thornton, told the court a conditional investment agreement had been signed, and he thought Aer Arann had a reasonable prospect of survival as a going concern.
He is now in the process of finalising a Scheme of Arrangement which will be put to creditors in the near future before they hold meetings later this month.
Aer Arran, which flies from Ronaldsway to Dublin and London City, went into examinership at the end of August, and is trying to turn around a deficit of 13 million Euros.
It was badly hit by the global economic downturn and the disruption caused by the Icelandic ash cloud.