Hainan Airlines Group (HNA Group) and the local government in Beijing has signed an agreement to inject capital into Deer Air and rename it Capital Airlines.
"We have agreed to co-operate with the government on this," says a spokesman from HNA Group, the parent of Deer.
He declines to comment on the amount of capital that the airline will receive, adding that it is not 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.
It operates a fleet of 19 Airbus A319s, says Deer's website.