Talks are taking place amid reports that Eastern Airways are to stop flying to the Isle of Man in the next few weeks.
The airline has stopped short of confirming it's pulling out of routes to the Island, but a spokesman said the the matter was 'under review'.
The company has said its crews and aircraft will no longer be based here.
Online bookings are no longer being taken past August 27 and it's understood staff have been told they are to lose their jobs.
Eastern fly to Aberdeen, Newcastle and Birmingham.
Director of Isle of Man Airport Ann Reynolds says it's a sad day when an airline feels the route is no longer viable.
She told Manx Radio:
"I think things were going this way for some time because there weren't the numbers on, particularly the Newcastle route.
"But it is a very sad day to learn that Eastern will be leaving the Isle of Man routes, and that is purely on a financial basis.
"But I have to say they have done fantastically well in persevering, particularly on the Newcastle route.
"I think Richard Lake, who is the managing director of Eastern Airways, will always keep an eye out for an opportunity and I know that he personally has had strong links with the Isle of Man for a long time, but things have got to a stage where realistically they have to pull out of a loss making route."

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