The States of Guernsey has approved an 'open skies' policy.
22 members voted in favour, with 14 members voting against.
The new policy means many routes will be opened up to other airlines, removing the need to hold a Guernsey air transport license.
Only two routes will still be protected through the government’s licensing system, which are Guernsey-Gatwick and Guernsey-Alderney.
Business groups like the Chamber of Commerce have called for an ‘open skies’ approach to air transport, but there have been warnings in recent weeks from local airlines Aurigny and Blue Islands that their year-round services could be impacted by new competitors ‘cherry-picking’ the most profitable flights.
The plans were put forward by the Economic Development committee on 11th June, with the hope to increase competition.