Flyglobespan, which employs about 1000 people across the UK made the announcement after a Sunday newspaper said it had needed a “last-ditch” cash injection on Friday to prevent the business going under.

In a statement, the Edinburgh-based budget airline, which flies to destinations in Europe, Canada and the US from a number of Scottish airports, said it had been negotiating the increased funding for months.

said in a statement there is no threat to jobs or passenger bookings: It added: “Flyglobespan today confirmed that it had successfully secured a financial investment package that will see Scotland’s leading airline continue to prosper and grow.

“For the past few months, the airline has been in negotiations with an investment company keen to secure a strong position within the travel sector.”

Chairman Tom Dalrymple said: “In the past few months I and my senior executives have received a number of presentations from parties interested in investing in our business. I am pleased to say that the chosen investor has the financial strength and vision to take the business forward to its natural next level.”

A spokesperson for the investment company involved, Halcyon Investment, said: “We have great belief in the Globespan senior management and its brand positioning in the market place.”