French Polynesia's domestic airline has rescinded its plan to drop more than half of its routes.
Air Tahiti ATR Photo: supplied
Last month, Air Tahiti said it would no longer fly to 26 islands because of the financial impact of the Covid-19 pandemic.
The announcement angered the government which warned that it would set up a new airline.
However after talks with the carrier's management, the government said an agreement was reached allowing for services to all 46 destinations to resume from 7 July.
The government agreed to subsidise the carrier with $US4 million allowing it to keep all its staff.
Air Tahiti, which is 14 percent government-owned, had said most routes were operated at a loss and without support from the government would be abandoned.
The move was decried as an attempt to take the population of entire islands hostage.