Deer is to get an injection of capital and change its name to Capital Airlines. A spokesman from HNA Group, the parent of Deer, said, "We have agreed to co-operate with the government on this."
No comment was made on the amount of capital the airline will receive, nor is it known when Capital Airlines will start operations under the new name.
Deer Air was formally known as Deer Jet, a business jet operator. According to its website, it offers both charter and scheduled services.
FlightGobal says it operates a fleet of 19 Airbus A319s.