The High Court has been told that the regional airline Aer Arann could return to profitability next year.
The court has appointed an examiner to the airline after receiving a report of the interim examiner, who was appointed last month.
The court was told that interim examiner was 'broadly optimistic' about the prospects for the survival of the company. It was also revealed that 11 different parties have expressed interest in investing in the airline.
The airline, which has 320 employees, will continue to operate under court protection. Lawyers for the airline said the examinership period may only last 50 days.
Key to the survival of the company will be equity investment, the continuing support of its bank and suppliers and the continuation of the operation and expansion of a franchise arrangement with Aer Lingus on its regional services.
The court was told that the recent decline of the airline's business was mainly due to the volcanic ash cloud which accounted for losses of €4.5m this year.
