The memorandum of understanding between the two airlines – which comes into effect from May this year – also means that Blue Islands will rebrand its aircraft in Flybe colours and use Flybe flight numbers.
However, Blue Islands said that it will remain a locally owned air operator and will continue to fly its aircraft under the Blue Islands Air Operators Certificate, which allows an aircraft to be flown for commercial purposes.
It added that it will still set its own prices and employ its own crew.
Rob Veron, Blue Islands’ managing director, said: ‘By becoming a franchise partner of Flybe we will really be able to put Guernsey and Jersey firmly on the radar of potential new visitors and will all benefit from Flybe’s significant marketing bandwidth capabilities.
Derek Coates, chairman and owner of Blue Islands, said that entering into the franchise was a ‘sensible way’ to ensure that the company remained viable in the future.
The announcement means that Blue Islands joins Flybe’s two other existing franchise partners, Loganair and Stobart Air.
