Channel Island airline Blue Islands is set to start a new link between Guernsey and Southampton. At the moment Flybe's the only airline operating the route.
The Commerce and Employment Department has announced it is allowing extra competition on the route following a hearing earlier this week.
Blue Islands had applied to run the route last September. The chairman, Derek Coates, said he is delighted by the news.
A detailed timetable for the summer season will be published at the beginning of May.